03-11-2009 07:40 AM
I have a CC at my credit union- the limit is $1000., right now ( I just made a payment this morning) my balance is $540. How low should I pay it, I'm hoping my scores will go up. TU 567 EQ 580 EX (last one I bought here) 597.
03-11-2009 07:52 AM
As far as paying down to increase your score, that depends. Is this your only card? If not, what are your limits and utilization on the others?
If this is your only card, and maximizing FICO points is your goal, then you should pay it down to less than $90, let the less than ninety dollars report, and then pay in full.
Ideally, you should have LESS than half of your cards reporting a balance, and your overall utilization should be between 1-9%, and the utilization on any individual card should be no more than 30% & ideally no more than 9% (someone may need to correct me on this last point).
Read the Credit Scoring 101 thread stickied at the top of the forum for more insight.
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"However gradual may be the growth of confidence, that of credit requires still more time to arrive at maturity” ~ Benjamin Disraeli
03-11-2009 07:57 AM
just a rule of thumb key:
over 75% maxed out, an AA target
over 50% too high, still at risk for AA
under 30% back in business
under 20% score building
0-9% maximizing score
your CL is 1000 and your current balance is 540 so your util is over 50% on the card. once you're under 50% you should get a score bump and so on until you're at zero. it is recommended that you buy only what you can PIF each month or in short order.
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