Question on debt ratio and fico score..

[Anonymous]

Thanks for the input "TeeVeedude", it's much appreciated. It makes sense what your saying about using the money to zero out the CC and leaving a low balance on the credit line. I can still take $2,100.00 from the credit line and apply it to the balance on the credit card. If I do this it will leave me (give or take) between 23% and 24% on my line of credit and $0.00 on CC..

What do you think..?

Thanks a million TeeVeeDude

How do you think it will affect my score (ballpark) once updated...?

EX:638, TU:643, EQ:652 

Message Edited by SERGE on 07-31-2008 11:18 AM

[Anonymous]

Any other input from anyone? I need all the advice I can get.

I juat want to get back on track,

Thanks

[MidnightVoice]

What are the relevant interst rates?

Is your objective to save money or have a high FICO score?

[Anonymous]

Thanks for the response midnight

What I want to do right now is to raise my credit score. That's the reason I zeroed out my LOC. I want to save money and it was a big sacrifice in zeroing the LOC balance. I did it for two reasons: rate was high and in the long run it would have cost me much more $$ and: I also did it to raise my credit score..  My next target is my CC % ratio. How do you think it will affect my score?

Thanks


EX:638, TU:643, EQ:652 

Message Edited by SERGE on 07-31-2008 02:10 PM

[Anonymous]

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MidnightVoice wrote:

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cheddar wrote:

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MidnightVoice wrote:

My input is in a rather similar thread 

Maybe some nice Mod would merge them?

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Maybe MV could provide a link so a Mod doesn't have to go looking for it?

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http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=113155&jump=true

I will make no comments on Mods making us plebs do their work for them 

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Merge done.  Thousands and thousands of threads, and you expect me to find the one you're referring to just like that?

[MidnightVoice]

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cheddar wrote:

Thousands and thousands of threads, and you expect me to find the one you're referring to just like that?

That is what they don't pay you for!!

Now be a good Mod and get the thread back on topic!!

[Anonymous]

MidnightV

What I want to do right now is to raise my credit score. That's the reason I zeroed out my LOC. I want to save money and it was a big sacrifice in zeroing the LOC balance. I did it for two reasons: rate was high and in the long run it would have cost me much more $$ and: I also did it to raise my credit score..  My next target is my CC % ratio.

Thanks in advance


EX:638, TU:643, EQ:652 

How do you think it will affect my score MidnightV...?

[RobertEG]

The only advice I would proffer is if both accounts are revolving, shifting from one to the other wont affect your overal revolv. %util.  But it will reduce the %util on the 70% util card, which is a big hit now.  Getting all cards under 50% would be my first FICO goal. 

FICO scores overall revolv %util at about the same level as indiv revolv TL util, so I would expect that such a boogey shift would help your score by reducing the hit on the one high %util card.

Message Edited by RobertEG on 07-31-2008 10:18 PM

[Anonymous]

Thanks Rob, I'll do that. I just want to get a handle and advice from people who know more about this. Do you think that with me paying down my LOC it helped as it stands and if it did , how much would you say as far as score is concerned? And definately I will do the flip (as far as taking some money from my LOC and placing it towards the CC balance).

Thanks again

[RobertEG]

My estimate, based on my own credit model, is an increase of about 30 pts based on decrease of overall %util from over 70% down to 16%, and the concurrent elim of the util on the single TL, and also with that TL now reporting zero balance in your mix of total cards reporting balances.  I think you did real gud!

Let me know if my projections are close. 

But getting all of this activity reported to the CRAs and then posted on your CR may take up to two months, so dont expect immediate increases.

As for shifting your remaining debt from one account to the other to bring the remaining TL below 50%, a gain will come, but not as significant as the gain by paying down overall %util. Maybe 5-10 pts more max.

Why do I say this?  FairIsaac has stated in its webinars that it scores revolving util at about 50% for overall % util, and 50% on individual account uitil.  So much bigger bang for the buck in overall, regardless of the account you apply it to.  But getting each indiv below 50% util will help in the other half of your %uti score.

Message Edited by RobertEG on 07-31-2008 10:44 PM

Message Edited by RobertEG on 07-31-2008 10:48 PM