Need Help to 740...

[Anonymous]

FICO Savants

I could use your sage counsel.  My immediate objective is a middle FICO mortgage score of 740 < by 1 February 2021.  Current (6 Nov 20) mortgage scores are EQ (5) 720; TU (4) 756; and EX (2) 730.  Supplementary data point, my FICO 8 scores are EQ – 766; TU – 744; EX – 763.  

Revolving/Open

Card A (AU) - $0/$25K

Card B - $0/$11K

Card C - $8.2K/$10K (82%)

Card D - $21.6K/$24K (90%)

Card E - $2.8K/$6K (48%)

Card F - $0/$2.6K

Card G (AU) - $0/$34K

Card H - $15K/no limit

Card I - $4.7K/$8.2K (58%)

LOC - is $0/$500

Installment 

Auto - $31K/$55K (56%)

Other - $9.7K/$16K (60%). This account has been paid off since receipt of the last mortgage scores, so the impact(s) not calculated in current scores.  I know, I know, the payment was just irritating me.

What action(s) do you advise?  Specifically, do I derive any immediate benefit if I pay off Card F or reduce to under 9%?  Thanks a million.

[Anonymous]

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@Anonymous wrote:

FICO Savants

I could use your sage counsel.  My immediate objective is a middle FICO mortgage score of 740 < by 1 February 2021.  Current (6 Nov 20) mortgage scores are EQ (5) 720; TU (4) 756; and EX (2) 730.  Supplementary data point, my FICO 8 scores are EQ – 766; TU – 744; EX – 763.  

Revolving/Open

Card A (AU) - $0/$25K

Card B - $0/$11K

Card C - $8.2K/$10K (82%)

Card D - $21.6K/$24K (90%)

Card E - $2.8K/$6K (48%)

Card F - $0/$2.6K

Card G (AU) - $0/$34K

Card H - $15K/no limit

Card I - $4.7K/$8.2K (58%)

LOC - is $0/$500

Installment 

Auto - $31K/$55K (56%)

Other - $9.7K/$16K (60%). This account has been paid off since receipt of the last mortgage scores, so the impact(s) not calculated in current scores.  I know, I know, the payment was just irritating me.

What action(s) do you advise?  Specifically, do I derive any immediate benefit if I pay off Card F or reduce to under 9%?  Thanks a million.

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I would think getting card D under maxxed out would be helpful.

Over 88.9% is considered maxxed out, I would say get it under 89% at least.

Just my opinion, others will chime in, I am sure!

Also, it looks like card F is already at 0%

[SouthJamaica]

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@Anonymous wrote:

FICO Savants

I could use your sage counsel.  My immediate objective is a middle FICO mortgage score of 740 < by 1 February 2021.  Current (6 Nov 20) mortgage scores are EQ (5) 720; TU (4) 756; and EX (2) 730.  Supplementary data point, my FICO 8 scores are EQ – 766; TU – 744; EX – 763.  

Revolving/Open

Card A (AU) - $0/$25K

Card B - $0/$11K

Card C - $8.2K/$10K (82%)

Card D - $21.6K/$24K (90%)

Card E - $2.8K/$6K (48%)

Card F - $0/$2.6K

Card G (AU) - $0/$34K

Card H - $15K/no limit

Card I - $4.7K/$8.2K (58%)

LOC - is $0/$500

Installment 

Auto - $31K/$55K (56%)

Other - $9.7K/$16K (60%). This account has been paid off since receipt of the last mortgage scores, so the impact(s) not calculated in current scores.  I know, I know, the payment was just irritating me.

What action(s) do you advise?  Specifically, do I derive any immediate benefit if I pay off Card F or reduce to under 9%?  Thanks a million.

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1. I don't know why you're asking about card F. That one's at zero.

2. I don't know what Card H is.

3. Your biggest problem appears to be cards C and D, both of which should be paid down as much as possible, preferably to zero.

[Anonymous]

Thanks for the reply.  Sorry, but meant "Card E."  One of the comments on my "Cons" was too many accounts with a balance.  My thinking was if I reduced another account to zero it might help my score.  Card H is AMEX.

[Anonymous]

It looks like you only need to add 10 points to your MMS, which is easily doable with revolving debt paydown based on the numbers you provided.  Definitely start with the highest utilization cards and pay them down to under ~48%, then after that shoot for under ~28%.  Only concern yourself with paying down revolving debt faster and don't waste any potential you have to pay that down quicker on your installment debt. 

[Anonymous]

Essentially you have too many revolving accounts with a balance and your utilization is too high. If you cannot pay off the two at 50% mark at least brign them down to under 28%. The two higher ones should also be dropped to at least 70%, and continue to whittle them down until 50%. Though it really depends on how much you have to throw at them, because all of them at 28% is a heck of a lot better. 

That said any movement should see a score change and it's not like you're looking for a big one. The only other issues I see is not score related, having a good Mortgage score doesn't erase dept or DTI. 

[Anonymous]

Just as a ballpark estimate OP, bringing your currently so-so overall utilization to an ideal place would probably be "worth" a good 25-30 points on all of your mortgage scores... likely a tad more even when you consider the greater number of $0 balance accounts.  While getting all the way there may not be possible due to time/financial constraints, my point is that working on that single area can yield you the 10 MMS points that you're in need of.

[Thomas_Thumb]

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@Anonymous wrote:

FICO Savants

I could use your sage counsel.  My immediate objective is a middle FICO mortgage score of 740 < by 1 February 2021.  Current (6 Nov 20) mortgage scores are EQ (5) 720; TU (4) 756; and EX (2) 730.  Supplementary data point, my FICO 8 scores are EQ – 766; TU – 744; EX – 763.  

Revolving/Open

Card A (AU) - $0/$25K

Card B - $0/$11K

Card C - $8.2K/$10K (82%)

Card D - $21.6K/$24K (90%)

Card E - $2.8K/$6K (48%)

Card F - $0/$2.6K

Card G (AU) - $0/$34K

Card H - $15K/no limit

Card I - $4.7K/$8.2K (58%)

LOC - is $0/$500

Installment 

Auto - $31K/$55K (56%)

Other - $9.7K/$16K (60%). This account has been paid off since receipt of the last mortgage scores, so the impact(s) not calculated in current scores.  I know, I know, the payment was just irritating me.

What action(s) do you advise?  Specifically, do I derive any immediate benefit if I pay off Card F or reduce to under 9%?  Thanks a million.

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EQ Score 5 despises profiles with too many cards/accounts having balances. Get count down to 4 for cards, 5 total with auto loan.

1) Bring the two cards highlighted in purple (E & I) to zero and make sure all cards currently at zero remain at zero. [as a minimum pay card E to zero]

* That should bump your EQ score at least 10 points IMO. You will gain additional points (perhaps 10 or more by reducing individual card utilizations as listed in #2 below.

EX score 2 despises profiles that have cards at high utilization and/or high balances. Also from my experience EX is rather sensitive to elevated aggregate revolving utilization. Lastly, this old Fico 98 algorithm looks at charge card utilization (such as a NPSL AMEX) which is calculated as a ratio of (current balance)/(high balance). I assume card H may be a charge card and I further assume your current balance is likely your highest reported balance. If so,that card is currently at 100% utilization. The following should gain you more than 15 points on EX.

2) Paydown cards C & D to get their respective utilizations under 69%

3) Paydown card H to bring B/HB under 69%.

Your "other" loan payoff won't help your score - it would have been better to use those funds toward revolving credit paydown. That being said, the payoff does lower your monthly DTI ratio. Lowering DTI increases the loan amount you can qualify for.

If you provide a dollar amount available toward paydowns, I could offer you a more targeted recommendation. Your AU accounts are in good shape - you need to put priority on your personal accounts. Top priority should be paying off card E followed by paydowns on other cards to get UT on each below 69% - IMO.

[Anonymous]

Thank you.

[Anonymous]

Thank you so much for your time.  I appreciate it greatly.