Ouuuccchhhhh. 40 point dings after last car payment.

[Anonymous]

I had it up to 800 across all three, with 2 synchrony accounts (lowes & Amazon), Discover, Cap 1.

Was able to finance an Escalade 4 years ago for 95K.

After two years, score got to 850 across all three, but then started running into trouble and ended up carrying balances on Cap1 & Discover. Utilization got as high as 90% on both cards, but 38% overall when considering 0 balances on the other two. All three dropped into the low 700's. Got Cap 1 below 80% utilization (just barely) and EQ & EX creeped up to the 780's. TU to around 756.

Last month was my last car payment. Over the last two days, I've lost 40 points on EQ & EX. They are both now 740. Expecting TU to take a hit next, probably going to drop to 710.

I do not want another car payment. It was $1700 / mo. Was hoping after that went away, a bank would see I am clearly able to make that kind of payment and get qualified for a mortgage, but with a 40 point ding, I need to recover. I don't know if it's even possible with no installment loans reporting.

Next reporting cycle I should have Discover an inclining below 80% for the first time in over a year. Hopefully that helps.

What should the next percent utilization target be for each card, for max. score boost after 80% ?

I thought 65%, but not sure. Whatever it is, I plan to get each card below the next threshold as the next step, then focus on paying off Cap 1 (higher interest than Discover) then get Discover below 3% and rotate cycling.  Would you agree that plan would eek out highest possible score? Otherwise what should I do instead?

Next question -- The car loan is paid off. How long will it remain on my report so a bank can see those payments were made, and on time, 4 years in a row?

[Remedios]

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@Anonymous wrote:

I had it up to 800 across all three, with 2 synchrony accounts (lowes & Amazon), Discover, Cap 1.

Was able to finance an Escalade 4 years ago for 95K.

After two years, score got to 850 across all three, but then started running into trouble and ended up carrying balances on Cap1 & Discover. Utilization got as high as 90% on both cards, but 38% overall when considering 0 balances on the other two. All three dropped into the low 700's. Got Cap 1 below 80% utilization (just barely) and EQ & EX creeped up to the 780's. TU to around 756.

Last month was my last car payment. Over the last two days, I've lost 40 points on EQ & EX. They are both now 740. Expecting TU to take a hit next, probably going to drop to 710.

I do not want another car payment. It was $1700 / mo. Was hoping after that went away, a bank would see I am clearly able to make that kind of payment and get qualified for a mortgage, but with a 40 point ding, I need to recover. I don't know if it's even possible with no installment loans reporting.

Next reporting cycle I should have Discover an inclining below 80% for the first time in over a year. Hopefully that helps.

Might help a little but you'll need to get it below 29% if you really want to feel the effects of reducing utilization, or ideally 9% (not necessary though)  

What should the next percent utilization target be for each card, for max. score boost after 80% ?  69%,49%, 29% and finally 9% 

I thought 65%, but not sure. Whatever it is, I plan to get each card below the next threshold as the next step, then focus on paying off Cap 1 (higher interest than Discover) then get Discover below 3% and rotate cycling.  Would you agree that plan would eek out highest possible score? Otherwise what should I do instead?

See above, you'd want to drop all the cards below those thresholds as card with highest utilization is used to assess scoring penalty 

Next question -- The car loan is paid off. How long will it remain on my report so a bank can see those payments were made, and on time, 4 years in a row? 

Up to 10 years, but there is no guarantee that it will stay the entire 10 years. 

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[Anonymous]

Thank you!
Exactly what I was looking for. So the best option -- from a score improvement persepctive is to get each card below the threshold points you posted. Obviously from the standpoint of finances, paying off highest interest first makes most sense, but I'm only shooting for score right now. If I understand correctly, my first goal should be to get each card below 29%. That should be much easier with Cap 1 since balance is lower.

[Remedios]

Yes, but you should see some gains as each threshold is crossed.
Also, keep in mind that aggregate utilization plays even bigger role, so if you can get your aggregate below 29%, you will see decent gains
Get it below 9% aggregate, and it's party time.

[Anonymous]

Aggregate utilization would also include the two synchrony accounts with a zero balance, correct?

If that is the case, right now I stand at 38%.

I would need to get the total of all balances below 20,580 to be at 28%, which would take ~3 cycles, at which point I'd be below 65% on both cards, and easy path to < 49% on Cap 1 next.

I'm wondering, why the 40 point ding across the board for making the final loan payment? -- did the car loan payoff remove the 95K I had in credit and throw a severe imbalance in utilization, or was it because it was the only installment loan on my CR and is now gone?

[Anonymous]

Like aggregate revolving utilization, the Fico algorithm looks at aggregate installment loan utilization as well.  Your loan just prior to being paid off was at very low utilization, so your score was realizing a nice boost from that.  This falls under the Amounts Owed sector of the Fico pie.  Once you close your loan, the algorithm no longer gives you a boost for an almost-paid-off installment loan, because that loan is no longer open.  Typically the closed loan will stick around on your CR for 10 years from the time you close it.

[SouthJamaica]

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@Anonymous wrote:

I had it up to 800 across all three, with 2 synchrony accounts (lowes & Amazon), Discover, Cap 1.

Was able to finance an Escalade 4 years ago for 95K.

After two years, score got to 850 across all three, but then started running into trouble and ended up carrying balances on Cap1 & Discover. Utilization got as high as 90% on both cards, but 38% overall when considering 0 balances on the other two. All three dropped into the low 700's. Got Cap 1 below 80% utilization (just barely) and EQ & EX creeped up to the 780's. TU to around 756.

Last month was my last car payment. Over the last two days, I've lost 40 points on EQ & EX. They are both now 740. Expecting TU to take a hit next, probably going to drop to 710.

I do not want another car payment. It was $1700 / mo. Was hoping after that went away, a bank would see I am clearly able to make that kind of payment and get qualified for a mortgage, but with a 40 point ding, I need to recover. I don't know if it's even possible with no installment loans reporting.

Next reporting cycle I should have Discover an inclining below 80% for the first time in over a year. Hopefully that helps.

What should the next percent utilization target be for each card, for max. score boost after 80% ?

I thought 65%, but not sure. Whatever it is, I plan to get each card below the next threshold as the next step, then focus on paying off Cap 1 (higher interest than Discover) then get Discover below 3% and rotate cycling.  Would you agree that plan would eek out highest possible score? Otherwise what should I do instead?

Next question -- The car loan is paid off. How long will it remain on my report so a bank can see those payments were made, and on time, 4 years in a row?

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1. Your mortgage scores probably didn't react the same way at all. Have you checked them? The FICO 8 scores

react crazily when one pays off an installment loan. The mortgage scores, in my experience, are just about indifferent to that metric. When I paid off my only open loan, my EX FICO 2 and EQ FICO 5 didn't move a point, and my TU FICO 4 lost a little but only about 20% of what my TU FICO 8 lost.

2 The car loan will probably stay on your report for around 10 years (but no guarantees... sometimes they last longer, sometimes they fall off sooner).

3. The absolute best thing for your revolving accounts is to maintain all but one reporting a zero balance. But you're in good shape if you have no card > 28%, aggregate balances <9%, and most cards reporting zero balances.

[Anonymous]

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@SouthJamaica wrote:

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@Anonymous wrote:

I had it up to 800 across all three, with 2 synchrony accounts (lowes & Amazon), Discover, Cap 1.

Was able to finance an Escalade 4 years ago for 95K.

After two years, score got to 850 across all three, but then started running into trouble and ended up carrying balances on Cap1 & Discover. Utilization got as high as 90% on both cards, but 38% overall when considering 0 balances on the other two. All three dropped into the low 700's. Got Cap 1 below 80% utilization (just barely) and EQ & EX creeped up to the 780's. TU to around 756.

Last month was my last car payment. Over the last two days, I've lost 40 points on EQ & EX. They are both now 740. Expecting TU to take a hit next, probably going to drop to 710.

I do not want another car payment. It was $1700 / mo. Was hoping after that went away, a bank would see I am clearly able to make that kind of payment and get qualified for a mortgage, but with a 40 point ding, I need to recover. I don't know if it's even possible with no installment loans reporting.

Next reporting cycle I should have Discover an inclining below 80% for the first time in over a year. Hopefully that helps.

What should the next percent utilization target be for each card, for max. score boost after 80% ?

I thought 65%, but not sure. Whatever it is, I plan to get each card below the next threshold as the next step, then focus on paying off Cap 1 (higher interest than Discover) then get Discover below 3% and rotate cycling.  Would you agree that plan would eek out highest possible score? Otherwise what should I do instead?

Next question -- The car loan is paid off. How long will it remain on my report so a bank can see those payments were made, and on time, 4 years in a row?

---

1. Your mortgage scores probably didn't react the same way at all. Have you checked them? The FICO 8 scores

react crazily when one pays off an installment loan. The mortgage scores, in my experience, are just about indifferent to that metric. When I paid off my only open loan, my EX FICO 2 and EQ FICO 5 didn't move a point, and my TU FICO 4 lost a little but only about 20% of what my TU FICO 8 lost.

I haven't updated my reports to reflect mortgage scores yet. I'll wait for TU to hit Fico 8 so I know all three are in, then do it. Or perhaps wait until next cycle, when Cap1 will be below 65% and Discover below 85%

2 The car loan will probably stay on your report for around 10 years (but no guarantees... sometimes they last longer, sometimes they fall off sooner).

Cool. I probably only need a lender to see I've been capable of making $1700 monthly payments.

3. The absolute best thing for your revolving accounts is to maintain all but one reporting a zero balance. But you're in good shape if you have no card > 28%, aggregate balances <9%, and most cards reporting zero balances.

I'm well aware of the revolvers. Used the strategy to go from less than 600 (along with clearing a few derogs) to 850 in 2 years. 2 years later, it tanked back down to overutilization & trouble. I should have this back to where I was -- 0 balance and 1 card reporting < 8% and PIF after close date in the not to distant future. Only thing is, I have zero installment loans now. In the past two year, my student loans went to last payment, knocking off 3 of them at once and last car payment was last month. Probably going to be in the best position I could possibly obtain in 6 months. I thought about a personal loan to transfer balances over & have the installment loan on my CR, but then that's an inquiry and new credit, less than a year from when I'd want a mortgage, and I'm capable of paying both cards off before then.

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[Duke_Nukem]

Have you tried for any CLI recently, to help "pad" your utilization? 

You listed a couple of Synchrony accounts that I think usually hand out CLI's every 4 months or so. 

CapOne may give you a $3000 CLI if you haven't gotten one in the past 6 months (they like to see heavy usage and nice sized payments).

Disco, well, they are anybody's guess on CLI but tend to hand them out generously.

If you can't get a CLI, then you may want to try asking for an APR reduction from Disco.  I've seen posts where they grant those on occassion.

[Anonymous]

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@Duke_Nukem wrote:

Have you tried for any CLI recently, to help "pad" your utilization? 

You listed a couple of Synchrony accounts that I think usually hand out CLI's every 4 months or so. 

CapOne may give you a $3000 CLI if you haven't gotten one in the past 6 months (they like to see heavy usage and nice sized payments).

Disco, well, they are anybody's guess on CLI but tend to hand them out generously.

If you can't get a CLI, then you may want to try asking for an APR reduction from Disco.  I've seen posts where they grant those on occassion.

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I don't want to ask on Synchrony. I don't use them much and already have 15K on Amazon and 25k on Lowes. I guess I could try, but only if they are SP. Disco gave me an auto CLI (not much, less than 1K) in the last 3 months. Cap 1 has been a while. Was waiting for Disco to report below 80 before trying to hit the Luv button. On Cap 1, is it SP or HP for CLI? Same on asking for APR reduction. Was going to wait for utilization to come down a little (preferably to 48%). Why would they give it to me now? They've made nice money over the last year in interest, and I royally screwed them (both cap 1 and disco) for three years by PIF every month.