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Regular Contributor
pozativelyliving
Posts: 237
Registered: ‎07-13-2012

Carrying A Balance, Which Way Is Better?

Say your carrying a balance of $2000. Is it better to have $400. on 5 cards or $2000. on one card? 

EX 638 (Lender 9/1) TA 650(Walmart 9/1) EQ 655 (FICO - 9/17)
Goal - 700 Club in '13!!!

My Wallet - Cap 1 - $300. Cap 1 - $750. Orchard - $950.
New as of 8/29 - Target - $3000. Barclay's - $2000. Merrick - $1000. Walmart $600. And as of 9/22 - JCP $200.
Senior Contributor
youngandcreditwrthy
Posts: 6,154
Registered: ‎08-16-2012

Re: Carrying A Balance, Which Way Is Better?

In that situation.. I think it depends on you personally... as several accounts with bals look bad, but a high util on one card looks bad. So determine what  your interest rates..

personally, I'd rather have a single account with a low rate and high bal., than a few cards with low balances and high rates.

 

hope that helps!

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Frequent Contributor
OptimasPrime
Posts: 348
Registered: ‎08-17-2012

Re: Carrying A Balance, Which Way Is Better?

[ Edited ]

It really depends on the overall revolving credit and individual limits that a given individual has. Without that information it is hard to say.

 

For example, if one cards cl is 10k and you're carrying a 2,000 balance it would look alot better than a 2k balance with a 2.5k cl. Conversely, say you have several cards with 2.5 k limits, it would then look better if you had several small balances spread out across them, rather than one maxed out tradeline. 

 

So there is no real concrete answer, as it really depends on a given individuals situation.

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Regular Contributor
pozativelyliving
Posts: 237
Registered: ‎07-13-2012

Re: Carrying A Balance, Which Way Is Better?

I was talking to a friend about this last night. I currently carry a balance of about $1k. It gets moved around depending on the amount that I pay per month. I use my cards for monthly expenses so I pay about $800. which knocks the balance down and moves it to another card. With Christmas coming, my balance might go up a little for a few months.  It would be $2k. More like $1700. So in my case, I could have it all shift to one Visa with a $2k limit or have $1k on that card, $400. on another card and one with $300. Those 3 cards would have a utilization of about 50% if I do that.   So it's have one card with a 85% and everything else shows $0. or 3 cards that have 50% utilization. 

EX 638 (Lender 9/1) TA 650(Walmart 9/1) EQ 655 (FICO - 9/17)
Goal - 700 Club in '13!!!

My Wallet - Cap 1 - $300. Cap 1 - $750. Orchard - $950.
New as of 8/29 - Target - $3000. Barclay's - $2000. Merrick - $1000. Walmart $600. And as of 9/22 - JCP $200.
Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010

Re: Carrying A Balance, Which Way Is Better?

Do you really mean "carrying a balance"?    Are you paying interest every month?  

 

Or do you mean "balance reporting?

Regular Contributor
pozativelyliving
Posts: 237
Registered: ‎07-13-2012

Re: Carrying A Balance, Which Way Is Better?

A paying interest type balance.  I'm wondering if I should push it all to one card or distribute the lack of wealth.  If I push it all to one card, one with a $2k limit would have a $1700. balance and there would be 5-6 at $0.00. The other two would go back with a reported balance of about $800. but that would be PIF monthly. 

EX 638 (Lender 9/1) TA 650(Walmart 9/1) EQ 655 (FICO - 9/17)
Goal - 700 Club in '13!!!

My Wallet - Cap 1 - $300. Cap 1 - $750. Orchard - $950.
New as of 8/29 - Target - $3000. Barclay's - $2000. Merrick - $1000. Walmart $600. And as of 9/22 - JCP $200.
Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011

Re: Carrying A Balance, Which Way Is Better?


pozativelyliving wrote:

Say your carrying a balance of $2000. Is it better to have $400. on 5 cards or $2000. on one card? 


It looks bad either way. If you had to do it, i'd go with whatever card has the lowest or 0% APR and put the full charge on it.

 




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Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010

Re: Carrying A Balance, Which Way Is Better?


pozativelyliving wrote:

A paying interest type balance.  I'm wondering if I should push it all to one card or distribute the lack of wealth.  If I push it all to one card, one with a $2k limit would have a $1700. balance and there would be 5-6 at $0.00. The other two would go back with a reported balance of about $800. but that would be PIF monthly. 


If you are paying interest, you should worry about getting out of debt, and not worry about your utilization

 

Move all the balance to lowest interest card and put no new charges on that card.   Pay as much as you can on this card, as soon as you can. as every day counts in interest accrual.

 

Use the PIF cards for all your spending and wait until due date to pay.   This helps make more money available for other card.  

 

This is general reduces your interest and gets you out of debt as soon as possible.    

 

 

Regular Contributor
pozativelyliving
Posts: 237
Registered: ‎07-13-2012

Re: Carrying A Balance, Which Way Is Better?

That's pretty much what I was thinking.  That $1700. would give me a utilization of about 19% and if my expenses post, which they will, it's still only 28%. Not the 9% or less that we strive for but also not 85% where it was a few months ago. 

EX 638 (Lender 9/1) TA 650(Walmart 9/1) EQ 655 (FICO - 9/17)
Goal - 700 Club in '13!!!

My Wallet - Cap 1 - $300. Cap 1 - $750. Orchard - $950.
New as of 8/29 - Target - $3000. Barclay's - $2000. Merrick - $1000. Walmart $600. And as of 9/22 - JCP $200.
Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010

Re: Carrying A Balance, Which Way Is Better?

19% is still a very good utillization, and unless you are applying is immaterial.    Better to get out of debt with minimum interest charges.


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