raising credit (FICO) using the snowball effect

I recently questioned Pennyhoarder about the sudden hit to my credit (FICO) score, which I thought had to do with Synchrony Bank taking over 6 of my credit cards. I decided to not use (unless totally needed) every one of those cards until I eliminate the balances, using the snowball method. Using a credit simulator, this effort should show some (not much) increase in my FICO score, even with excellent no missed payments. I found out today, that this is a result of a change in what is evaluated as creditworthiness putting the emphasis on credit utilization. I know the stories about raising your income and lowering your expenses but I don’t have that luxury of not needing to pay for necessities (housing, transportation, utilities, and food) since I am the one who pays those expenses, plus I am dealing with a retirement income only. Getting a job would mean I overcome ageism in the hiring and after working over 40 years in a job for the sake of getting a paycheck, I don’t want a job that isn’t also fun for me, so I don’t have that option either. So the snowball technique is my option. I noticed in one of the topics you mentioned that any positive effect will be seen in about 4-6 months because of the delays in reporting but now with the new rules, I suggest you change that to a longer time period. My worry is that my credit level available will lower until I manage to achieve that coveted over 640 FICO, which is frustrating since I was almost there prior to December 2019. I am tired of backsliding because of changes that aren’t addressed first.

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I am with you, Maria Rose. My credit score was very high until I took out a Synchrony Bank credit card to pay off a medical expense. My payments are made way in advance of the due date. This just happened in December. Now, my credit score is fair. We just have to be without needs, and that is impossible.

You must have opened a CareCredit card which is basically like those installments payments ( supposedly without interest for a given period if you pay it off), usually an 18-24 month time period. If you don’t completely pay it off, you get all the interest from the start added on. Synchrony Bank is the first bank that switched to the new Vantage Score system for credit scoring. Hey I am looking at this way (to stay positive), they are losing my business ( the companies who are using Synonchry) because I am not buying anything from them until I see my score rise again and even then, I won’t be buying much since I am limiting my spending to the minimum of 1/3 of credit allowed. Funny some of these accounts I have had for over 6 years. Thanks for your support.

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I agree. I am not spending anything on that card. I just want it to pay off that medical debt.