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EdYu

My Score Up 79 points in 3 weeks

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Hi all, long time follower, new member, first post.

 

Good stuff up front.  Details later.

 

Scores:

 

July 7 - TransUnion Vantage - 652  - July 28 - 731 (+79)

June 22 - Experian Vantage - 688 - July 28 - 736 (+48)

July 6 - Experian FICO - 714 - July 28 - 761 (+47)

July 26 - Equifax Vantage - 660 - July 28 - 737 (+77)

June 26 - Equifax FICO - 711

 

Background:

 

I was a very successful Realtor for 12 years, but I lost my spouse to Cancer in 2011.  After that ordeal and a bout of grieving/depression, my score bottomed out in the low 500's.  Lots of late payments--sometimes due to lack of money--sometimes due to a lack of energy to pay the bills.  I started rebuilding my credit with a secured card 5.5 years ago.  The last seriously late payment dropped off my report last Spring.

 

The facts:

 

1) Your payment history counts more than other single item in your score calculation (no news here).

2) Credit utilization is considered next.

3) Credit age is almost as important as credit utilization.

4) Recent inquires have a minimal impact.

 

My idea:

 

As a Realtor and a student of credit, I have always been told that transferring balances from one account to another does not greatly impact your credit score.  However, I am a student of bureaucracies and how to find loopholes in their systems.  So, my idea is that I know that I can handle my debt load, but each of my accounts reports on a different day of the month (typically 1-4 days after the statement prints).  By transferring balances between accounts, I can decrease my credit utilization--the second most important part of the score calculation.

 

 The Numbers:

 

I have 7 credit card accounts showing on my reports:

 

On July 1 here is what my reports showed...

 

Limit/Balance

23,100/20,600

15,000/14,700

8,000/8,004

9,500/8,000

5,000/2,200

5,000/1,400

8,000/0

 

Credit Utilzation 76%, several cards close to limit, and one card over limit.

 

I had some money to apply to these balances, but all did some transferring around and today, my report shows...

 

Limit/Balance

23,100/9,600

15,000/13,600

8,000/300

9,500/300

5,000/1,100

5,000/1,400

8,000/0

 

Credit Utilization 35%, only one card close to limit, nothing over.

 

In two more, weeks, I will be done with moving some additional balances and my report will show...

 

Limit/Balance

23,100/500

15,000/300

8,000/300

9,500/300

5,000/1,100

5,000/1,100

8,000/0

 

Credit Utilization will be 5%, nothing close to limit.

 

My reasons:

 

1) I wanted to see if I could do this and what the impact would be.

2) I need some capital for my business and rates will be better if my score is better.

 

Lessons learned:

 

1) Credit only matter on the day that you apply.  

2) Credit utilization is really two things (a) total utilization AND (b) utilization per account. 

 

I'll post my results back once I am done with this project (about August 13)

 

 

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congrats on the progress.

 

why did you pay down the $8k and $9.5k balances to $300 instead of $0?

 

if you want to maximize the util portion of your score, pay off all balances and only let $2 report on one card. short of that, the first step would be to get rid of those small $300-500 balances on several cards. more cards with balances hurts you even if they are each small.

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7 hours ago, shifter said:

why did you pay down the $8k and $9.5k balances to $300 instead of $0?

My understanding is that a zero balance is seen as slightly more negative than a small balance.  My goal for each of the cards is 2% which will put me under 5% (but not zero) total Utilization.

Edited by EdYu

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No, that's completely false. A total balance of $0 is bad. You want one card with a $2 balance and the rest $0 for ideal scoring. Is it going to kill you to have a couple of cards with small balances? No. But you will definitely lose points with a balance on every card. 

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7 hours ago, shifter said:

No, that's completely false

Thanks for the information.  The reason that I supposed this was...

 

I really hadn't found anywhere that talked about the impact of the status of each individual card.  Everything that I had read talked about the negative impact of total utilization.   When I saw how much that $4 over limit impacted my score even though my total utilization hadn't changed much, I realized that the advice of total utilization was only part of the story and that each individual card's utilization also impacted my score.  I thought that this epiphany would also translate to the 0% utilization.

 

Just to make sure that I understand what you are saying...

 

1) Total Utilization impacts your score, but you don't want 0%

2) Individual card utilization impacts your score, but only for numbers over 0%

3) My plan to get below 5% total utilization is flawed and my score would improve even more with a .00275% total utilization.

Correct?

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10 hours ago, Kat58 said:

Thanks.  That was helpful.  I would hardly call my report "clean".  If so, I don't think that I'd have a low 700s score a few weeks ago.

 

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Clean means no derogs. High util dropped your score. That doesn't make it any less clean. 

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In short, to maximize the score potential of a clean report: 5+ revolving accounts with a total utilization of <1% and only a single card reporting a non-zero balance.

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7 hours ago, shifter said:

Clean means no derogs. High util dropped your score. That doesn't make it any less clean. 

Thanks again for the info.  I do have a few derogs (I think).

 

4 x 30 day lates (most recent 31 months ago)

1 medical collection (under $100, paid, less than 2 years old)

 

A couple of score updates...

 

July 7 - TransUnion Vantage - 652  - July 31 - 732 (+80)

June 22 - Experian Vantage - 688 - July 28 - 736 (+48)

July 6 - Experian FICO - 714 - August 2 - 762 (+48)

July 26 - Equifax Vantage - 660 - July 28 - 737 (+77)

June 26 - Equifax FICO - 711 - July 24 - 735 (+24)

Based upon the comments here and once change to a credit limit, new plan...
 

Limit/Balance

23,100/0

15,000/0

8,000/300

9,500/300

6,500/1,100

5,000/1,100

8,000/0

 

Credit Utilization will be 3.4%, no cards close to limit.

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762 FICO with 2.5 year old 30DLs? Don't think that is possible.

 

730 is about the max you can do. 

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On 8/3/2018 at 8:36 AM, shifter said:

762 FICO with 2.5 year old 30DLs? Don't think that is possible.

 

730 is about the max you can do. 

I don't know if you are saying that I'm not telling the truth about the score, or that Experian calculated the score incorrectly or that you are wrong in your supposition, but here are the screen shots.

 

Experian_FICO_762.jpg

 

Mr_Cooper_Late.jpg

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Always good to learn something new. I don't think we've ever seen anyone with that kind of AAOA/oldest account age and 30DL. Without the lates you'd be pushing 850.

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Subscribed.  I have had a CCT aka credit check total ...had that subscription and have not seen those view panels with that info   

 

How did you get that view?   Or is it thru a different service.  

 

Thank you!

 

 

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On 8/4/2018 at 11:55 PM, shifter said:

Without the lates you'd be pushing 850.

Without the lates AND the horrible utilization.

 

As I said, I really don't care about my score (except when I am applying for credit).  

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On 8/5/2018 at 10:38 AM, credit-credit said:

How did you get that view? 

freecreditscore.com > view all accounts > click on the line with the account

 

It opens and you see that information.

 

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Just had another bank report.  Today's score is....

784!!! (Experian/FICO)
 

Current Utilization looks like this...

 

Limit/Balance

23,100/9,600

15,000/0

8,000/300

9,500/300

5,000/1,100

6,500/1,400

8,000/0

 

784_FICO.jpg

 

Don't let that "0 missed payments" tab throw you.  That means 0 in the past year.  You can still see the "bad payment history" under the "What's hurting" section.


 

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