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Please, I need your help, I am mathematically challenged and can't figure this all out on my own.
I currently have 11 of 13 cc's reporting balances, most near the CL. Last week I applied and was approved for a NFCU NavChek loan for $10,500 and will be paying off 8 of the 11 cc's carrying a balance, leaving $3,300 of available on the NFCU LOC. Currently my EQ AAoA is 4y8mo with NFCU being my most recent account eight months ago and 51% utility, so my questions are:
1. How many points can I expect to lose on the new revolving LOC?
2. How many points should I expect to rebound after all the near CL cc's balances report $0?
(I understand I just moved the debt but will FICO reward me for having 8 of 14 cc's now reporting zero balances? Especially after most of them were near the CL, Right?)
I received about $2,200 in CL's which only $800 is currently reporting on EQ and reflects my current FICO score of 710, PLUS I have the additional available credit of $3,300 on my LOC, so I have $5,500 in additional available credit to lower my utility. Please let me know if you need more information to help me figure out a guestimate of my most recent quest to increase my score.
Ok, I just figured it out, or so I think ;-).
After all my new CLI's report and my new revolving account report, I will have:
$41,340 in Credit
$17,293 utility
Which means I will have gone from 51% utility to 42%. The questions still remain; how many points will I lose and then rebound for the zero balances and lower utility? Anyone?
IMO, not enough info. To track the before and after util, you'll need at least the before balances and after balances (assuming here $3300 is the remaining), plus you'd need the before and after total CLs at the least. But....here's a guess:
If you got a loan for $10,500, and you are paying 100% of that towards revolving balances, and you'll have $3300 left over on the LOC, then it is an assumption that your total balances before the loan was $13,800 and that paying $10,500 from the loan will leave you $3300 on the LOC. You mentioned your util overall is 51%, so a guessed balance of $13,800 across all CCs and the LOC would leave you with an estimated $27,000 in CLs. Am I close?
So, the before is $13,800/$27000 with balances on 11 of 13 CCs and the after is $3,300/$27,000 with balances on 1 of 13 CCs, and your util before was 51% and your util after is 12%. Assuming this is correct, and assuming you don't have any closed CCs of the 13 or any CCs w/ a balance beyond 100% of the CL, then I'd predict larger gains on EQ of approx. 40-50 points and 30-40 on TU for the util only. There isn't enough info on the AAoA, but assuming it doesn't drop below 4 yrs, then I predict a loss due to the new credit of 10-15. Your net gain would be 30-40 for EQ and 20-30 for TU. If you just fork out an additional $810 on the LOC beyond what you pay via the loan, then my guess would go up an additional 10-20 points for TU and EQ because the util drops below 9%.
Purely a guess. Let us know!
ETA....I just posted before seeing your second post...ignore mine.
llecs, thanks a bunch for the attempt, you were way off but that's because I didn't supply enough information....my fault.
My total LOC is $10,500, $3,300 of which will remain unused because I used $7,200 toward other revolving balances to reflect zero balances. When everything is all said and done; I will have 14 accounts, 4 reporting balances. I guess I just want to know; can I expect a score increase after all is said and done? There are new factors that will drop my score as well as increase my score, so if my current score is 710(i'm sure 3 new inquiries dropped it a few points), can I expect my score to increase to at least 740 because most of my cc's are no longer reporting high balances? FICO said this was the factor hurting my score the most.