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How much to pay down on CC to boost up my Credit Score?

Contributor

How much to pay down on CC to boost up my Credit Score?

I first would like to say i followed the home loan board, and now are proud home owners Smiley Happy i love this board and the advice so much..

 

We would like to apply for a auto loan soon. If i remember correctly, what was the% balance you want to keep on your CC that will give you the most boost to your credit? We have the funds now ( thank you tax returns) to pay all of them down. 

 

Here is what i have, (yes its alot)

 

1. Credit one -$400 credit limit

 $347 owed

 

2. Merrick Bank- $650 CL

$565 owed

 

3. Orchard Bank $400 CL

$400 owed

 

4. Discover. $1200CL

$1150 owed

 

5. Premiere $375 CL

$346 owed

 

6. Capitol One $500 CL

$188 owed

 

7.Lowes $900 CL

$893 owed

 

8. Home Depot $1800 CL

$906 Owed

 

Any HELP is much appreciated.Smiley Happy Smiley Indifferent

Message 1 of 8
7 REPLIES
Super Contributor

Re: How much to pay down on CC to boost up my Credit Score?

max effect on score between 0-9% (utility)

You may want to list the interest rates on each card for a little more help

and a big congrats on your NEW HOME!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 2 of 8
Established Contributor

Re: How much to pay down on CC to boost up my Credit Score?

Geez, you've got some work to do! Util below 30% will boost your score, but ideally below 10% for the best loan rates. Good luck!

AmEx Platinum | AmEx BCP | AmEx Delta Gold | CSP | Chase Freedom | NFCU cashRewards Visa Sig | NFCU Plat MC | WM MC | Discover it | JCP


Message 3 of 8
Valued Contributor

Re: How much to pay down on CC to boost up my Credit Score?

A few cards are reporting at over 90% util which is a big red flag for lenders. If you have the funds, pay them all off except for one and let it report a small balance. You should see a nice boost in scores!

Starting Score: EQ 717 EX 724 TU 736
Current Score: EQ 832 EX 783 TU 816
App free since 9/15/15
Message 4 of 8
Valued Contributor

Re: How much to pay down on CC to boost up my Credit Score?

It depends on how much you are talking about that you can pay toward these cards. And yes what is your APR on these? Currently if my math is correct you are at 77% Utilization...and for the best score increase you would want to be at 10% or less. In this case you would need $4170 to pay these debts down to 10% of your available credit of $6225 leaving you a revolving balance of $625. I have read on here many times that it is best if only (1) card shows a balance and the others to be at zero. But I am not sure of how much that really matters as long as you get your UTL down.

Hope this helps.

*8/10/13
Message 5 of 8
Established Contributor

Re: How much to pay down on CC to boost up my Credit Score?

Pay them all in full, allow the discover to report a <$50 balance.

 

Once they all report 0 balance, call each one and request a CLI, but don't allow HP's.

 

Email EO of Cap1 for a CLI.

 

Get car loan from a CU @ a reasonable rate.

 

Sock draw everything except the Cap1, Discover, and Lowes.

 

Mind your garden.


DCU ( pulled 3/29/13) EQ04 683 | Amex (pulled 3/28/13) EX 760 | US Bank (pulled 3/28/13) EX 753
CreditKarma (4/19/13) TU-TR 701 | TU Vantage 788 | USAA FAKO (3/31/13) EX 728, EQ 699, TU 737 |
Inquiries (4/18/13) EX 13 | EQ 13 | TU 14
Message 6 of 8
Contributor

Re: How much to pay down on CC to boost up my Credit Score?

we have $3000 to pay down these CC, i would have to call each one to get the apr, but i think preimere is the highest at 20%? but not sure.

 

I will talk to my husband and tell him all of this advice, or at least we can pay each of them down to 30% and then use our extra cash to pay them down even more.

 

I appreciate EVERYONES help Smiley Happy

Message 7 of 8
Highlighted
Valued Contributor

Re: How much to pay down on CC to boost up my Credit Score?

You will def make good progress with paying the $3k no matter where you put it. If it were me I would pay off all the lower balances that I could to zero them out. Mentally it just helps so much more to see them paid in full. And when you see your score jump it makes it all worth it. Good luck to you!!! 

*8/10/13
Message 8 of 8