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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308782  
Subject: Re: FICO Increase Date: 8/20/2012 6:32 PM
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Any guesses on what my new score increase will be seeing as I just paid off about 20k in revolving debt?

What is your current revolving debt to available credit ratio (credit utilization ratio)? What was it before you paid off the $20k? Did you close the credit line, in addition to paying off the debt? If you closed the credit line, your score may actually decrease. That's one of the mistakes that people who are trying to improve their credit scores make when paying off debt - by closing the revolving credit lines after the debt is paid off, they are actually increasing their credit utilization, which can make your score go down, rather than up.

Secondly would I see a bump when my ex-wife removes me from our old mortgage and equity loan?

First- be aware - the history from these loans isn't going to disappear from your credit history. You were a borrower on the loans, so the history prior to your removal is yours to keep.

If the home equity loan is a HELOC that was still open to draws, she will be removing available revolving credit as well as the debt, so you may see a change there. However, if the HELOC was less utilized that your overall revolving credit ratio, it probably won't be a favorable change, as it's the same issue with closing other revolving lines of credit when they get paid off - see the comment above.

You may see a change in the amount that lenders are willing to lend to you, even if the score stays the same, because your debt to income ratio may show improvement by getting those loand closed.

AJ
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