I currently have 100% utl and have about a $2000.00 revolving credit limit divided into about 6 cards. The lowest card has a $200.00 limit and the highest limit card is $500.00. How should I pay this off? Next month I am going to get alittle bit of extra money so I can technically pay the whole amount off with no problem. Or should I break it down in to a few payments? Meaning next month bring it down to 75%, June bring it down to 50% and July 25% percent and finally in August less than 10%? Whats your honest opinion? I have not missed a single payment for the past year and half since I been building my credit. . I have been sending the minium for the past 3 months, I am student and part-time employee. Previous to this the cards were payed off. I need to bring my scores up! I am currently sitting about 550 Transunion and Exquifax FICO score... I will like to get above 600 and keep rising!
Pay off 5 of your cards to $0 immediately. Keep a balance of <10% of your credit limit on your 6th card.
Give everything about a month to report to the credit bureaus.
Purchase your FICO here.
This should bring up your scores to high 600's.
Pay them all off, all at once. No benefit in dragging it out.
For optimum scores, let ONE report a small balance like $10, and then pay it off before the due date. (Thus no interest paid.) For almost everyone, your scores drop a bit if all accounts report $0. This means pay off all but $10 several days before the statement is due, let the $10 show on the statement, and then pay off the $10 that very day. <-- This is easy to forget to do!
If you have a card from one of the major banks (other than US Bank or HSBC/ Orchard), they report the balance that appears on your statement, sending in the info that night. It then updates to the three credit reports, taking up to a week or so for all three to post it.
Once all of your cards report $0 (except one, if you wish), your scores will be back up.
Revolving util is the easiest scoring factor for the consumer to control, with nearly-immediate results, if you have the money to pay off the balances, of course.
eta: out-typed by aftermath!