@Anonymous wrote:
If you can pay all that down and get to AZEO or close, that would be great. As for your question regarding the 70% individual revolving utilization threshold, it is significant to the point that it begins to get into a more severe loss range.
(More recent knowledge has confirmed the threshold is it 70%, not 69%. Therefore, as long as you’re under 69.5% you will be under that 70% threshold that was previously falsely believed to be at 69% and falsely required you to be at 68.9% or less. For more information and a graphic example, see the utilization chart in post 2 of the Scoring Primer linked at the top of my signature.)
But I must chime in on the loan idea from a scoring perspective. First she would not have the "new account penalty," because loans don’t cause new account scorecard reassignment, just revolvers.
Second as noted above, loan utilization does not penalize like revolver utilization on current and past versions. It is lightly weighted, comparatively. Version 10 promises changes to that tho.
Her only loss would be the small ding from the inquiry, probably a small ding for aging, and depending on her current loan profile, probably a small ding for the loan balance.
If we had the aging and loan information, we could speculate as to the drop, but I doubt it would be that significant, unless her aggregate loan utilization is currently under 10% or unless she had a very thin file and it would cause significant aging loss.
Thanks for the clarification here. That makes a lot more sense and it's good to know.
My monthly FICO report just came out and it seems my mortgage scores finally updated from the 2 x 1000 maxed out Amex cards I had paid off along with a Best Buy and Goodyear cards I also paid off ( Best buy was around 750 out of 1000 limit and GY was 775 out of 1100)
I also had 1 over limit drop off and an inquiry drop off as well.
Mortgage scores are now:
EQ616 EX631 TU645
I have enough coming in this month to pay down every card under the 78% threshold.
This might not be a question for here but if we chose to go a personal loan route to consolidate all or most of the revolving cards, does anyone have suggestions on quality lenders?
Will keep everyone posted with the process!
Mike
