How high did your FICO go after paying off CC's?

[rarrrr]

Is it better to bring it down over a few months? We actually pay our CC in full every month, but I guess it uses the statement balance. Is it better to go from 26% directly to 1% or should I drag it out from 26% to 13% to 6% and then 1%? Does it make a difference? I also have a 7 year old $175 paid medical collection that seems to be dragging down my score. I thought old collections do not have much of an impact, but I'm seeing a 100 point disparity between Experian which doesn't have the collection and EQ and TU which do have the collection.

[bluescale]

FICO scores have no memory of past balances.  Bringing your UTL% down over time has no benefit (with the exception of allowing you a little more financial flexibility of you need to carry a balance - which it doesn't sound like you do anyway).  Bringing your UTL% down immediately has the benefit of improving your score faster.

I can't speak to the collection, since I've been fortunate enough not to have to go through that at all.  Any reason you didn't GW it?

[bluescale]

So, I jumped the gun and purchased my credit report early.  I thought both my accounts (credit card and line of credit from my CU) had reported, but it turns out only my CC had reported.  Utilization on the card went from 97% down to 4%.  My line of credit still shows maxed out.  Overall, my utilization now sits at 20%.  My EX score just jumped up 45 points.  

Hopefully I'll get another 20 points from the credit line dropping down to $0.

[Blasian32]

I received a 58 point jump when all my credit cards were paid under 10% 

[bluescale]

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@bluescale wrote:

So, I jumped the gun and purchased my credit report early.  I thought both my accounts (credit card and line of credit from my CU) had reported, but it turns out only my CC had reported.  Utilization on the card went from 97% down to 4%.  My line of credit still shows maxed out.  Overall, my utilization now sits at 20%.  My EX score just jumped up 45 points.  

Hopefully I'll get another 20 points from the credit line dropping down to $0.

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Today I recevied my ScoreWatch alert for the same change as EX yesterday (CC down from 97% util to 4% util; other LOC still showing maxed out; overall util at 20%).  I recevied a 78 point jump from EQ.  It's quite an exercise in patience waiting for my LOC to update.

[bluescale]

Today my LOC finally updated.  On the TU report I purchased last month, my utilization was 97%.  This month it was 4%.  My score increased 63 points.

[Ecevan]

I went from around 90% utilization, during my 0% interest period, to 0% utilization and saw my score go from about 650 to 740.  Nice jump considering a year ago i was at a 605 with zero credit history.  Now i have a few credit cards with perfect payment history and 0% utilization, as well as a truck loan at 1.9% with a perfect payment history. Hoping for another slight jump in scores when my credit cards and auto loan hit 1 year old. 

[youngandcreditwrthy]

Wow! Nice increases folks!
So if you have overall low util, is it most important to get maxxed out cards below a certain percentage util? What's a good starting point? I currently have 96% on a Freedom card at 0%.

[bluescale]

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@youngandcreditwrthy wrote:
Wow! Nice increases folks!
So if you have overall low util, is it most important to get maxxed out cards below a certain percentage util? What's a good starting point? I currently have 96% on a Freedom card at 0%.

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I can't say at what point you'll start to see a significant increase, since I went all in with paying of my card.  However, a maxed out card will kill your score.  I gained almost 20 point when I paid off my maxed out LOC.  It only accounted for 20% of my overall utilization, but it was pegged.  I'm not sure how many of those points were due to my overall utilization dropping from 24% to 4%, and how much was due to maxed out card no longer being maxed.

[Networth]

I had 17% Util It's now down to 8% Util I got a 27 point jump.