Pay down impact to credit score - applying for mortgage

[Lushi]

I need a 15-20 point drop to get a more favorable mortgage, but see my scores going down instead of up as I'm making significant payments. How can paying the following impact:

Capital One - $2,732 (credit line 12,500)

VW auto loan - $998.29 (original $35k)

American Express - $28,000 (high balance $35k)

Lending Club personal loan - $6,945.71 (original $35k)

MOHELA/Sofi student loan (but shows as a personal loan) - $96,568 (original 101,193.78)

Navient student loan (shows as a personal) $77,063 ($83083.68)

[Anonymous]

If those are your only 2 credit cards, you need to make some more payments on the Amex card.  Not only are you losing points for having 80% UTI on that card, you are losing points for total UTI being 72%.  The scoring breakpoints seem to be around 68.9%, 48.9%, 28.9%, 8.9%.  Cross some of these thresholds and you easily have your 15-20 points, and a whole lot more IMO.  This only assumes your credit line on the Amex card at 35k as you only mentioned your high balance, not your credit line.  I am also assuming this isn't another installment loan.  If you have more credit cards, it would help to know their credit lines even if at a 0 balance.

[SouthJamaica]

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@Lushi wrote:

I need a 15-20 point drop to get a more favorable mortgage, but see my scores going down instead of up as I'm making significant payments. How can paying the following impact:

Capital One - $2,732 (credit line 12,500)

VW auto loan - $998.29 (original $35k)

American Express - $28,000 (high balance $35k)

Lending Club personal loan - $6,945.71 (original $35k)

MOHELA/Sofi student loan (but shows as a personal loan) - $96,568 (original 101,193.78)

Navient student loan (shows as a personal) $77,063 ($83083.68)

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Is American Express a charge card or a credit card?

[Thomas_Thumb]

Given the designation "high balance" mentioned by the OP, the AMEX must be a NPSL charge card. This should not count toward revolving utilization in Fico 8. However a high B/HB will have a substantial impact on EX Fico score 2 (Fico 98).

The OP should bring Cap One balance below $1100 to get it and aggregate revolving UT under 9%. Cap One UT = aggregate UT if this is the OPs only credit card.

[Lushi]

Thank you! I do have two other cards that I don't use...

Barclaycard $0 bal./$9,850 limit

Capital One $0 bal./$8,500 limit

Capital One $2,732/$12,500 limit

Amex. $26,427/no pre-set spending limit

[Lushi]

Thank you! The Amex is a card with NPSL. Also, I do have other ccs that I do not use.

Barclaycard $0 bal./$9,850 limit

Capital One $0 bal./$8,500 limit

Capital One $2,732/$12,500 limit

Amex. $26,427/no pre-set spending limit

[Lushi]

Thank you!

[SouthJamaica]

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@Lushi wrote:

Thank you! I do have two other cards that I don't use...

Barclaycard $0 bal./$9,850 limit

Capital One $0 bal./$8,500 limit

Capital One $2,732/$12,500 limit

Amex. $26,427/no pre-set spending limit

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@Then yes, as @Thomas_Thumb says, pay Capital One down to $1125.

Doesn't Amex HAVE to be paid down?

[Lushi]

Thanks, again. Paid Capital One down. AmEx has a pay-over-time feature. Some charges MUST be paid off in full each month while others may be paid over time. Not sure what the determining factor is as to what gets paid over time vs paid in full.

[Lushi]

Thanks, again. Paid Capital One down. AmEx has a pay over time feature. Some charges MUST be paid off in full each month while others may be paid over time. Not sure what the determining factor is as to what gets paid over time vs paid in full.