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Minimal score increase after paying down CC

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Doc203
New Member

Minimal score increase after paying down CC

I am an authorized user on my wifes card - I paid it off in the amount of $13500, a balance that had been carried and reported for several months. My score only jumped 13 Points.

 

I realize several factors go into this. here is some info:

  • Current score on myFico - 661
  • Only issue on my credit report is high utilization, trying to cure this
  • If I run it in the FICO simulator it should have bumped my score by 50 points
  • $38000 balance on revolving lines, before I paid the $13500
  • I also paid down other cards that reported by $8800
  • Total debt paydown was around $20000 on $38000 in revolving credit

What am I missing? Is there something I should do?

 

I fully expected a 75 point leap.

 

Thanks for any help.

Message 1 of 24
23 REPLIES 23
Adkins
Legendary Contributor

Re: Minimal score increase after paying down CC

What's your total limits, plus what's the remaining over all balance? You'll get the most FICO score points if your overall utilization is under 9%. If it's still over 9%, you won't get as big as a score jump. And if one card still has a very high utilization, this will also lose you points. Without more data, I can't say anymore. 


Last HP 08-07-2023



Message 2 of 24
Doc203
New Member

Re: Minimal score increase after paying down CC

Thanks for the response... It is well over 9%, more likely 40%. I have a few more smaller cards that are close to their limits - just trying to get the biggest bang. I guess what threw me off was the score simulator that should understand the factors you mentioned and showed a bump.

 

I am trying to balance paying off cards with saving cash for a property purchase we are making this fall. Want to get the best score I can while retaining cash for a down payment on the land. 

Message 3 of 24
Adkins
Legendary Contributor

Re: Minimal score increase after paying down CC

I'd try to get as many cards under 30% as possible, to get the most points, if you can't get then all to under 9%. 


Last HP 08-07-2023



Message 4 of 24
Adkins
Legendary Contributor

Re: Minimal score increase after paying down CC

And get any cards over 89% paid down first. Those maxed out cards are really hurting your score, even if they are smaller limits. If you want detailed help from the board, list all your cards, including limits, balances and APR, and more people will chime in to give advice. 


Last HP 08-07-2023



Message 5 of 24
Anonymous
Not applicable

Re: Minimal score increase after paying down CC

Never trust a score simulator, they're rarely accurate.

 

List all your card's balance and limits before and after the pay down, including the AU account, so we can better help you.

Message 6 of 24
Doc203
New Member

Re: Minimal score increase after paying down CC

Great - Some of those accounts my wife is the primary card holder and I am an authorized user. I am thinking of removing myself from some of those that are high utilization, primarily the ones that aren't that old. 

 

Thanks for the help Adkins - I appreciate it.

 

Message 7 of 24
Doc203
New Member

Re: Minimal score increase after paying down CC

I will do this tomorrow when I have the time to go through it... Thanks !

Message 8 of 24
Doc203
New Member

Re: Minimal score increase after paying down CC

It only took me a min  - here you go:

 

CardBalCredit LimitReported toAuthorized User
Chase34263500EQYes
Sync/Walmart30393800All 3 
Discover52555500All 3Yes
Chase333500All 3 
Am EX18371950All 3 
Sam's Club29553000EQYes
BP02300All 3 
Chase014400EQ, EXYes
Amazon Store988610000All 3 
Chase610410000All 3 
Citi25672690All 3 
Cap One20652250All 3Yes
Cap One08000All 3 
Ashley Furn13904000All 3 
Cap One19422050EXYes
Message 9 of 24
K-in-Boston
Epic Contributor

Re: Minimal score increase after paying down CC

Welcome to the forums!  Score simulators are notoriously unreliable.  The act of simply paying off debt (I'm still in the process of paying an enormous amount myself) doesn't increase scores.  For utilization, you're scored by the total % of your total credit lines being used, the % of each individual card being used, and the number of credit cards reporting a balance vs. reporting $0.  The biggest gains come from having balances under 10%, or at least under 30% (this is why you will see 8.9% and 28.9% thrown around a lot here).  You start to take big penalties when you have individual cards reporting very high percentages of utilization, you take even more when your total utilization is very high, and you'll take a slight dip if 50% or more of your cards are reporting a balance.

 

Say you had $100,000 of credit and had balances of $80,000.  You pay down the balances by $50,000.  Depending on how you apply the payments, you could see very modest gains by getting down to 30% overall with half of the cards paid off and the others still reporting 80-100% utilization, or you could possibly see massive gains by paying almost all of them off and leaving acceptable balances on say two cards with large limits.

Message 10 of 24
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