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Whoa! Citibank gave me a $20K card!


DjArcadian
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It's a business card but they opened it under my social security number so I'm guessing it should reflect on my personal credit. I had previously had about $10K of debt spread on about $13K worth of credit. With this additional $20K of credit it will bring me about to the 30% credit/debt ratio which is really good for me. I'll be well below the 30% percent mark within two or three months.

My only other marks on my report are some late payments which are 4 years old.

My credit score is 650 now according to Wamucards.com. What can I expect to see when it updates next month? I'm guessing it should jump to 700 at least.

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Well, paying down some personal debt MAY have an effect on your score...but...since the score you see is the one that predicts whether CCs will make money off you by charging interest and occasional late fees, don't be surprised if lower balance = lower scores.

And...don't forget that moving personal (covered by FDCPA, FCRA, and includable in personal BK) debt to "business" debt may have other ramifications. Be careful.

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I'm surprised you'd say that a lower balance would lower my score. I thought traditionally the lower your debt to credit ratio is the higher your score. I understand that this will only be to a point. Once paid off I doubt I'll have a score of 800 but isn't a score of 700 a reasonable assumption? Regardless, my main concern now is just paying off debt regardless of the consequences.

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Its difficult to predict. The problem is that the FAKO scores and the FICO score that you're allowed to see is closest to the FICO "Bank Card" score. That's used to predict that you have and USE credit cards. The current "internet" wisdom is, that "utilization" around 30% is "best" for this score. Does that mean if you use less than 30% of your available CC credit, your score will be higher? Don't know for sure, but my theory is no.

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