Paying down a closed revolving balance

[Anonymous]

I applied for a VA home loan in Jan. My middles score was a 582.. I was told to get my scores up that i would need to pay off some of my credit card that was closed. I didn't know that the closed card was affecting my UTIL which is at 181 percent! 

Capitol One

$9/$2300

$6/$500

Closed Card 

$5064/$0(since its closed it reports as zero)

I paid off the $5064 dollars for the closed card, what type of jump should I see?

Ex 598 TU 609  EQ 630

[Anonymous]

A ginormous jump.

[Anonymous]

To attempt to quantify CGID's statement above, I'd venture to guess that going from maxed out utilization to 1% utilization would result in around a 100 point gain.  As with everything credit-related, it's profile-specific of course.

[SouthJamaica]

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@Anonymouswrote:

I applied for a VA home loan in Jan. My middles score was a 582.. I was told to get my scores up that i would need to pay off some of my credit card that was closed. I didn't know that the closed card was affecting my UTIL which is at 181 percent! 

Capitol One

$9/$2300

$6/$500

Closed Card 

$5064/$0(since its closed it reports as zero)

I paid off the $5064 dollars for the closed card, what type of jump should I see?

Ex 598 TU 609  EQ 630

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Big!

[arkane]

Over 9000!

[Anonymous]

Thanks everyone for the feedback! My middle score went up to at 614! 6 points away from what I need but im sure i will be able to get up by june. 

[NRB525]

OP do you have any late payments? 

Is the VA loan looking at FICO 8 or is it another version of FICO?

Is that same FICO version in the improved score?

Congrats on the pay down of the balance. Which bank was that, reporting a zero limit on a $5k balance?

[Anonymous]

i had late payments from last June. Planned on waiting until June of this year so that they have aged 12 months. 

[Anonymous]

that was my mortgage score my fico 8 is wasy higher

[Thomas_Thumb]

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@Anonymouswrote:

Thanks everyone for the feedback! My middle score went up to at 614! 6 points away from what I need but im sure i will be able to get up by june. 

Capitol One

$9/$2300

$6/$500

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If you report a small balance, say $40 or less, on just one card with the other reporting $0 you may get the 6 points you want. Best not to report balances on 100% of cards - except for those that only have one card.

Note: Fico mortgage scores are more sensitive to multiple cards reporting (particularly EQ) than Fico 8.