04-27-2011 09:52 AM
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!
04-27-2011 09:59 AM - edited 04-27-2011 10:00 AM
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.
04-27-2011 10:00 AM - edited 04-27-2011 10:00 AM
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!
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