I have three cards that are currently in the introductory zero APR period; interest begins in Q2 2025.
I’ve kept high balances on them as I focus on other debts, but I’m curious how quickly and how high my 640 score will rise if I pay them off. My other credit factors are good; the main issue affecting my score is high utilization.
Honestly, it seems like many of us are caught in a rat race to get high credit scores. Unless you’re planning to make a large purchase on credit soon (hint: you shouldn’t), it doesn’t matter much. Just pay them off before interest kicks in, and your score will rise and fluctuate a few points depending on the statement balance.
@Greene
If I reduce my utilization from about 90% to 0%, will my score rise significantly, hopefully above 700?
Mike said:
@Greene
If I reduce my utilization from about 90% to 0%, will my score rise significantly, hopefully above 700?
Likely, yes.
Mike said:
@Greene
If I reduce my utilization from about 90% to 0%, will my score rise significantly, hopefully above 700?
Likely, yes.
But then using the card again could lower it! So we’re back to square one.
Mike said:
@Greene
If I reduce my utilization from about 90% to 0%, will my score rise significantly, hopefully above 700?
Absolutely! My EQ FICO 8 score jumped 58 points when I reduced my revolving account utilization from 9% to 1%. Despite being 9% overall, one card reported at 100% because of a mistake. Paying it off showed 0% utilization, and overall, that brought my score way up. Reducing yours from 90% to 0% will likely get you past 720, at a minimum.
Mike said:
@Greene
If I reduce my utilization from about 90% to 0%, will my score rise significantly, hopefully above 700?
Yes, moving from maxed-out to ideal utilization can boost your score by around 100 FICO points.
Mike said:
@Greene
If I reduce my utilization from about 90% to 0%, will my score rise significantly, hopefully above 700?
Utilization contributes to about 20-30% of your score. Your score will increase if you pay off all the cards, though the exact amount depends on your profile.
@Greene
That’s my understanding too. Your credit score really doesn’t matter much outside of significant purchases. I’m working on it to ensure I get the best rate for a car loan.
As soon as it’s reported to credit bureaus.
If you pay a Chase card to zero, they report it within a few days. Most banks report new balances whenever they send out a bill.
Thames said:
As soon as it’s reported to credit bureaus.
If you pay a Chase card to zero, they report it within a few days. Most banks report new balances whenever they send out a bill.
If I reduce utilization to near zero, will my score increase significantly, potentially above 700?
@Mike
I think so.
Utilization changes are typically reported monthly when your statement closes. A few lenders may vary, but reducing your reported utilization will positively impact your scores. However, no one can precisely predict how many points your scores will rise, or if you’ll exceed 700.
Note that your post may concern utilization and its effects on credit scores. Here’s some information:
Ignore the 10/20/30 utilization percentages. They apply primarily when you’re about to apply for new credit, 1-2 months out.
Utilization should fluctuate; it can be manipulated easily and doesn’t build credit—consider it a final touch for optimizing your score.
Feel free to use up to 100% of your limits monthly, just ensure you pay your statement balance in full before the due date. Every month. Every time.
For more, check these posts:
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I can’t specify how quickly or how much your score will go up, but it should see a significant rise once all your cards report at low utilization. Just keep in mind that this number can fluctuate as you report different balances. Ensure payments are made on time to avoid high interest charges.
@patrickseed
To clarify, interest won’t hit if I pay my monthly statement in full, right?
Mike said:
@patrickseed
To clarify, interest won’t hit if I pay my monthly statement in full, right?
Check your last statement for the card with the intro APR. Each bank has different terms, but it should indicate a Promotional APR with an end date. If a balance remains after that date, you’ll start incurring interest.
As long as you pay it in full by then and continue to pay monthly, you shouldn’t be charged interest.
Are you planning on applying for new credit soon, like a car loan or mortgage?
esleystanley said:
Are you planning on applying for new credit soon, like a car loan or mortgage?
I’d like to be prepared for that. I’m also looking to apply for another one or two cards to increase my overall credit limit.
@Mike
Gotcha! You can pay them off anytime before the promo ends, and your scores will jump as soon as the next statement posts.