@creditfrustrated01 wrote:
@Realist wrote:I'm going to be in the camp to not pay off any lines at all. Focus on the utilization, even if this means taking down easy to pay off loans to a mere $100. Remember utilization factors in noticeably, and will reflect accordingly. The moment you pay off a card, or multiple cards, you are inviting a bump, good or bad, unto the score.
Lenders weigh the quantity of debt you hold, and the makeup of debt you hold. They want to see your back up against the wall, to show that you can handle financial debt and obligations. While holding a great deal of credit card debt isn't diversity of overall debt type, you do have the ability to control utilization, and you do have the option not to cause unnecessary ripples that would occur by paying off cards in full.
Once you secure that consolidation loan, then it sounds like it's smooth sailing. Good luck.
LOL. Point taken on the paying off of cards. My availability of the 10k I had to work with was basically split into 2 amounts due to a check hold on the 10k check. I took that first half availability and paid off my 3 lowest cards. One has already reported and my Fico 8 score dropped 3 pts on Experian. It's so counter intuitive to pay something off and have your score drop instead of increase. The other 2 havent reported yet that I can see, but i suspect it may be similar. The 2nd half availability comes after all but 1 of my cards have cycled so it will go towards that one card (only enough to pay off 30%) and paying the minimums+ on the remaining cards that will have already cycled.
Needless to say, still creditfrustrated.
1. Your paying one account down to zero did not cause the 3 point score drop; something else caused it.
2. The plan of getting cards down to zero is the best way to increase FICO 2, 4, and 5 quickly. Stick with the plan. FICO 8 is NOT the same as FICO 2.
@creditfrustrated01 wrote:
@SouthJamaica wrote:
@creditfrustrated01 wrote:
@Realist wrote:I'm going to be in the camp to not pay off any lines at all. Focus on the utilization, even if this means taking down easy to pay off loans to a mere $100. Remember utilization factors in noticeably, and will reflect accordingly. The moment you pay off a card, or multiple cards, you are inviting a bump, good or bad, unto the score.
Lenders weigh the quantity of debt you hold, and the makeup of debt you hold. They want to see your back up against the wall, to show that you can handle financial debt and obligations. While holding a great deal of credit card debt isn't diversity of overall debt type, you do have the ability to control utilization, and you do have the option not to cause unnecessary ripples that would occur by paying off cards in full.
Once you secure that consolidation loan, then it sounds like it's smooth sailing. Good luck.
LOL. Point taken on the paying off of cards. My availability of the 10k I had to work with was basically split into 2 amounts due to a check hold on the 10k check. I took that first half availability and paid off my 3 lowest cards. One has already reported and my Fico 8 score dropped 3 pts on Experian. It's so counter intuitive to pay something off and have your score drop instead of increase. The other 2 havent reported yet that I can see, but i suspect it may be similar. The 2nd half availability comes after all but 1 of my cards have cycled so it will go towards that one card (only enough to pay off 30%) and paying the minimums+ on the remaining cards that will have already cycled.
Needless to say, still creditfrustrated.
1. Your paying one account down to zero did not cause the 3 point score drop; something else caused it.
2. The plan of getting cards down to zero is the best way to increase FICO 2, 4, and 5 quickly. Stick with the plan. FICO 8 is NOT the same as FICO 2.
Just going by the myfico alert. "The balance on one of your accounts has decreased by $1259 Experian -3 Equifax +0". That was 1 of 3 payed off cards.
I do realize that the Fico 2, 4, 5 is not the same, however it's not visible until I pull a credit report, which I wont do until this exercise in payoff plays out. I enacted a plan and now I pretty much need to see it through either way. At the very least, that eliminated 3 payments from the monthly budget.
The MyFICO alert does not indicate a cause and effect relationship between the substance of the alert and the score reported. MyFICO alerts don't provide reasons for a score change. There are certain events which trigger MyFICO alerts. If there happens to be any difference between your present score at that particular bureau and the previous score reported to you from that bureau, the score change is tacked on to the alert. There is not necessarily any connection at all between the score change and the alert substance.
MyFICO explains this as follows:
Why did my score go up when I got an alert for something negative (or why did my score go down when I got an alert for something positive)?
The short answer: Your FICO® Score may change because of other events not monitored by an alert.
Whenever we send you a credit alert, we also send an updated FICO Score. To ensure you get the most current score, we calculate it based on your entire credit report at that point in time—not just the new information on the alert. This means your new score may reflect other changes that are outside of the things we watch for (see everything we monitor).
Sometimes you may see your score increase when you think it should’ve decreased, and vice-versa, but you’ll always have your most up-to-date and accurate score.
https://support.myfico.com/hc/en-us/articles/360038084633