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How many points could you get when paying off credit card (UTI @ 90%. Will pay it down to 15% UTI)

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Anonymous
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Re: How many points could you get when paying off credit card (UTI @ 90%. Will pay it down to 15% UT

And so you know I did have 1 late payment in June so I can probably say that why the big score drop as well

Message 11 of 38
Anonymous
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Re: How many points could you get when paying off credit card (UTI @ 90%. Will pay it down to 15% UT

Yeah, if it is only one 30D and it's only on one account, it will hurt you most for 3 months (June, July, August, maybe September) and then start hurting less.  I believe the one 30D late breakpoints are 0-3 months, 3-6 months, 6-12 months, 12-24 months, 24-36 months, 36-48 months and "older than 48 months" when they hurt the least.

 

After a year of using and paying that account, start a goodwill "saturation" campaign to get it removed.

Message 12 of 38
Anonymous
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Re: How many points could you get when paying off credit card (UTI @ 90%. Will pay it down to 15% UT

Man I so wish I coould meet as well and this is the best advice i EVER HAD! I will def get 1 more card to make it 3 then wait 5 to 6 months and get 2 more. Thanks for the advice and will keep you posted on the new app I'd go for next week!

Message 13 of 38
Anonymous
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Re: How many points could you get when paying off credit card (UTI @ 90%. Will pay it down to 15% UT

Man I so wish I could meet as well and this is the best advice i EVER HAD! I will def get 1 more card to make it 3 then wait 5 to 6 months and get 2 more. Thanks for the advice and will keep you posted on the new app I'd go for next week!

Message 14 of 38
Anonymous
Not applicable

Re: How many points could you get when paying off credit card (UTI @ 90%. Will pay it down to 15% UT

What I would suggest is start calculating your AAoA right now and forecast it.  Then in the future, you can do an AAoA estimate as to what would happen if a new account is opened.  I suggest trying to get up to 12 months AAoA and then keeping it about 6 months AAoA going forward (at a minimum).

 

It's easy to do math in your head with just a few cards.  Add up how many months old each card is and add those months together.

 

If you have 2 new cards and add a 3rd, wait until all 3 cards age totals 36 months.  36 months / 3 = 12 months average age.

 

Then if you want to add a 4th card and 5th card, you're already at 36 months so 36 months / 5 accounts = 7.2 months average so you're above the 6 month penalty point!  And in 5 months after you add 4 and 5, you're back up to 12 months average.

 

Then do your own math and see if you can keep it above 12 months.  There's no benefit between 6 months average and 24 months average, so once you've aged everything enough to get to 24 months average, you want to apply with the intent to keep it over 24 months even with new accounts (which is easier as you add more credit cards).

 

PM me if you want an easy spreadsheet to manage that math!

Message 15 of 38
Anonymous
Not applicable

Re: How many points could you get when paying off credit card (UTI @ 90%. Will pay it down to 15% UT

I will definilty PM you as I love everything about maaging credit and credit period! Funny thing is I work in the industry (financial) so learning more is fasinating to me! Once I am home I will ask you then and PM you. Thanks so much for your help! So you know as of now, I'm sitting at 5 years and 1 month (5.1 years)? Had to repair my credit as it was horrible starting back in 2015 after grad school but still managed to keep a good payment history with my car loan except that 1 late payment (just a 30 day) but in fact late..

 

(father and grandfather passed away in the same month this pass year so I had no choice but to let the payment go in late.) Wells Fargo auto was very understaning and even waived the later fee, plus sent me flowers.

Message 16 of 38
Anonymous
Not applicable

Re: How many points could you get when paying off credit card (UTI @ 90%. Will pay it down to 15% UT

That car loan helps but once it's paid off, you'll want to make sure you have another loan in place.  I highly highly suggest doing the Alliant SSL Technique which you can find in my signature link -- it costs almost nothing for the 5 full years it reports, and it will keep your FICO score strong!

 

As for that 30D late, you should try goodwill saturation to get it removed.  It never hurts to try once a month until they remove it!

 

Most folks in the finance industry are totally clueless about credit.  Realtors and loan officers are among the worst for giving bad advice.  My good neighbor is a realtor and her husband is a banker and the advice they give to people makes me roll my eyes every time.  So you're not along with being in the "still learning" column.

Message 17 of 38
Anonymous
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Re: How many points could you get when paying off credit card (UTI @ 90%. Will pay it down to 15% UT

Lol!

That is the total truth! I work in the  Credit Risk area, but reall want to step in the Credit Analyst feild with the  company. Plus it may sound nerdy but I love searching and playing the game of keep my credit score up and challeging myself to see what i can get my credit score to and what cards I can get. Sure I can learn a lot form you!

 

 

Message 18 of 38
Revelate
Moderator Emeritus

Re: How many points could you get when paying off credit card (UTI @ 90%. Will pay it down to 15% UT

-17 EQ FICO 8

-18 TU FICO 8 (with 2 year old 30D late)

-21 EX FICO 8 

 

$0 to 90.06% utilization on a single tradeline, small aggregate; I haven't done any smaller unit testing on my clean file, previously 15% individual was a non-issue for me and I suspect is for everyone actually.

  

Hoping to get a better datapoint in January for all the EQ scores but this is a fairly decent sample; when I tried this before on a dirty file in the mid 600's it was only 7 points on EQ FICO 8.

 




        
Message 19 of 38
Anonymous
Not applicable

Re: How many points could you get when paying off credit card (UTI @ 90%. Will pay it down to 15% UT

@ABCD I swear almost every thread I look at has at least one well thought out eloquent answer from you in it lol you should win some sort of prize for smartest person on MF, literally every single thing you say is either informative hilarious or both haha and I figured you should get some recognition for that

If you ever need some more data points for your fico simulations I'd be happy to throw some your way!

(P.S. good luck with paying everything down and racking up those points OP!)
Message 20 of 38
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