increasing FICO score

[Anonymous]

I don't know if this is germane to the conversation, but I'll interject.

I purchased the FICO Complete product last week. My scores ranged from 638 to 655.

In running the score "stimulator" on all 3 reports, the suggested best course of action on all 3 was to pay 90%-100% of my cc's over the next 24 months, which could result in a score of 685-730.

All good and well, except my reported utilization was at 9%. So I guess I'll pif ALL my cc's, sockdrawer every one of them save for 1 or 2 of my highest balance bank cards. I'll see where that takes me.

[Anonymous]

What kind of, and how many baddies do you have?   You must have some if your score is that low.

[Anonymous]

RobertEG:

So, based on your last post here, it would follow that the more mtg and installment TL's you have, the more $0 balance cc's you must have in order to keep below 50% of all open TL's with balances.

For example, I have a mtg, a HELOC, a car loan and 4 open credit cards.   Unless I keep $0 balances on ALL credit cards, then I will get a 20 point hit?  Doesn't sound right that I would need to have 5, 6, even 7 credit cards to be able to have balances on one or 2, even if I PIF each month (which I do, by the way).

Can you add anymore commentary?

[Anonymous]

---

@Anonymous wrote:

What kind of, and how many baddies do you have? You must have some if your score is that low.

---

Oh I do. I have a total of 24 x 30 day lates showing up on 5 cc's dating back 7 years, with the youngest being one year old. Also some things in public records: liens(that I'm paying on).

Throw in my credit app frenzy in early October thru November(6 cc's added to tl's), lowering my history to just 2 years and that's the reason's the scores are so low.

[haulingthescoreup]

---

@Anonymous wrote:
I purchased the FICO Complete product last week. My scores ranged from 638 to 655.

In running the score "stimulator" on all 3 reports, the suggested best course of action on all 3 was to pay 90%-100% of my cc's over the next 24 months, which could result in a score of 685-730.

All good and well, except my reported utilization was at 9%. So I guess I'll pif ALL my cc's, sockdrawer every one of them save for 1 or 2 of my highest balance bank cards. I'll see where that takes me.

---

I have carped at Barry about the phrasing in the simulator, which implies that it is better to drag your payments out over time.

What it is actually trying to say is, get your util down fast, and keep it down. After 24 months of low util (and no bad behavior), you can expect your scores to be somewhere in the predicted range.

You've got the right idea! PIF all but one or two, have them report under 10%, wash, rinse, and repeat.

[marty56]

As Hauling says, pay the balances down.  It has really worked for me.

For some reason, the Score Simulator kinda makes me feel like I am back in college asking a professor if there is going to be a curve on the test I just took.  I dont use it.

[Anonymous]

Hauling - keeping a balance and paying interest charges (i.e. not PIF all accounts) really increases your score?   That doesn't make sense.   If you have balances showing each month, then PIF AFTER the closing date each month, it still shows as a balance and a % UTL on your report and on your score when requested.

Unless someone has actual proof that not PIF'ing ALL revolving accounts each month increases FICO scores, we shouldn't be recommending this course of action if it can be avoided.   I PIF all my revolvers each month because I have no inclination at all to give away any money via interest charges.

God knows how much interest I am paying on my car loans, and the 1st and 2nd mtgs.  Don't need to add to that by giving away money to the CCC's.

Do we have proof of this or should we instead be telling people to PIF all revolving accounts each month (if you can), but do so after the cc reports the monthly balance to the CRA's.

[Anonymous]

Boscoe- I think you are making this much more complicated than needed.

IF toy have a CC with a 4K limit and spend $100 a week on it.

Here is the balance progression-

In this example - You are PIFing the statement balance

	Change	Balance
Start	0	0	Statement balance
Week1	100	100
Week2	100	200
Week3	100	300
Week4	100	400
Payment	0	400	Balance is 400 but 0 is due
Week1	100	500
Week2	100	600
Week3	100	700
Week4	100	800
Payment	-400	400	Balance is 800 but 400 is PIF for no Finance charge

---

Boscoe wrote:

Hauling - keeping a balance and paying interest charges (i.e. not PIF all accounts) really increases your score?   That doesn't make sense.   If you have balances showing each month, then PIF AFTER the closing date each month, it still shows as a balance and a % UTL on your report and on your score when requested.

Unless someone has actual proof that not PIF'ing ALL revolving accounts each month increases FICO scores, we shouldn't be recommending this course of action if it can be avoided.   I PIF all my revolvers each month because I have no inclination at all to give away any money via interest charges.

God knows how much interest I am paying on my car loans, and the 1st and 2nd mtgs.  Don't need to add to that by giving away money to the CCC's.

Do we have proof of this or should we instead be telling people to PIF all revolving accounts each month (if you can), but do so after the cc reports the monthly balance to the CRA's.

---

[Anonymous]

Timothy:  I'm not making this complicated at all.  Simply PIF all statement balances each month.   That is nice and simple, as I am sure you agree.

Remember, this is what Hauling said above:

"You've got the right idea! PIF all but one or two, have them report under 10%, wash, rinse, and repeat."  

My understanding of "PIF all but one or two" means, "you do not PIF all accounts", which means you are paying interest charges on the balance not being paid in full.  If you have to do this, then do it, but whether or not you PIF should not influence your FICO score provided your UTL remains low enough.

Am I missing something?

[haulingthescoreup]

---

@Anonymous wrote:

Hauling - keeping a balance and paying interest charges (i.e. not PIF all accounts) really increases your score? That doesn't make sense. If you have balances showing each month, then PIF AFTER the closing date each month, it still shows as a balance and a % UTL on your report and on your score when requested.

Unless someone has actual proof that not PIF'ing ALL revolving accounts each month increases FICO scores, we shouldn't be recommending this course of action if it can be avoided. I PIF all my revolvers each month because I have no inclination at all to give away any money via interest charges.

---

No, I NEVER pay interest charges. The sequence of statements and balance due dates is first the statement with balance posts and then the payment is due. If not PIF'd by then, you will pay finance charges. My cards all have at least two and a half weeks after the statement date before any payment is due. So on one card, it looks something like:

1/1 $0 balance
1/4 $5 balance (Mickey D's for breakfast)
1/6 $20 balance (previous plus Office Depot)
1/7 $55 balance (previous plus bought gas)
1/8 $10 balance (paid $45 online)
1/12 statement posts with $10 balance, $10 reported to credit bureaus
1/15 $0 balance (PIF'd the $10 that posted)
1/21 $35 balance (another tank of gas)
1/27 $70 balance (gas, gas, gas)
1/31 payment due date: $0 due, because the $10 on the statement has already been paid.

The $70 in charges made after the statement date go on the 2/12 (next month's) statement. And if they haven't been paid off by then, they will be due on 2/28.

We have had members PIF all their cards so that all reported $0. As I recall, it was a 20 point score drop. I do have one exception: my TU score is highest when all are PIF'd, but that's because I have very few open TL's (mortgage, HELOC, student loan, and 5 cards.) TU seems to like fewer than half of all TL's with balances, which means my loans. But that is very much an exception.