Curious to know if throttling the payoff of multiple credit cards have any extra benefit with points?
- Example, take a couple threshold steps for an individual card:
- Pay 1 card down to 29% let it report, then followed by pay down to 9% on a subsquent monthly report and so on to payoff/zero amount due
- Or other scenario: Payoff card #1 current month and then pay off card#2 the subsquent month; will this provide more points vs paying both off at the same time?
In other words, If I pay off X amount of cards at once will the increase in fico be more or the same if paying off each one over time?
Data point: I paid off a NFCU CC this past week and had the benefit to kind-of test this. I paid down a $16K balance out of $17,800 Credt Line card to a balance of $2700 right before statement closing; it reported on EX the new balance and only recieved a 7 point increase. While I was waiting for this to report I spoke with an incredible NFCU agent to request the backoffice to do an off cycle CRA report when my final payment would post a day later and into the new statement period (I had good reason for the request: I was limited on ACH at 10K, then I paid via Zelle limit of $3500 and my last payment via Zelle was stuck in pending with the holiday.) They updated my report the next day with my final payoff I received another 7 points. So all things being equal on my reporting besides AAoA, I got a total of 14 point increase after paying off a high 80% util card. So this prompted my question above, if threshold steps yield higher Fico rewards 7+, 7+, 7+ etc ... I know the acrruing interest would not be a pratical approach just to get points if you can payoff the debt right away, but was curious if this may come into play when you have multiple card balances that may take a few more months to payoff. But yeah me, only the CLOC left to go and then only Personal Loan and Car Loan. No more credit card debt --- unless I get a zero APR intro card to cover the PL once my score goes above 740. Currently at 720.
