Credit card useage

ajzjmsmom · ‎01-12-2014

I am not sure if I am going to be able to adequately explain my question but here goes...we recently were in a position to pay off all our credit card debt, we both have scores just under 700 with no negative history, were just carrying high balances. We want to keep 4 of the cards and will eventually be canceling the other accounts. We are planning on trying to get a mortgage in the next 6 months so are hesitant to close any accounts at this time so as not to drop our credit score. For the 4 that we are going to keep how is the best way to utitlize them, use them to make a purchase and then immediately pay off the balance or let a statement post and then pay it off? I know that paying off the debt should shoot us up over 700 which is what we are looking for, for a better interest rate on a mortgage but just not sure of the best way to utilize the cards from here on out. We have been using our debit card of any CC purchases but do worry about it being linked to our checking account and would prefer to start using the CC's for what we normally use the debti card for, good idea or bad idea? .

Themanwhocan · ‎01-12-2014

This post explains how to optimize your credit score:

http://ficoforums.myfico.com/t5/Credit-Cards/How-do-I-play-the-1-9-Utilization-Game-Please-Help/m-p/...

TU-8: 804 EX-8: 805 EQ-8: 788 EX-98: 767 EQ-04: 752
TU-9 Bankcard: 837 EQ-9: 823 EX-9 Bankcard: 837
Total $443,800

tntexans72 · ‎01-12-2014

What was your utilization % before you paid off those cards?

I would pay off all your credit cards and let them report to see how high your score bump.

If your utilization was around 50% for those cards and you paid them down to ZERO...I would imagine your score will jump at least 20pts plus.

GL on your future home purchase.

gdale6 · ‎01-12-2014

Pay all off except 1, leave 1% of its CL reporting, paying all off and reporting 0 is the same to FICO as if you were in the 30% util range. To stay ahead of the curve use your cards just be able to pay them all off except for the 1 that you will let report 1% to the CRA prior to stmt cut. You can rotate the card that will report its balance to the CRA every month if you want to as well.