Credit Card Center Advertiser Disclosure†
05-25-2013 03:54 PM
As I see from the responses I should have also wrote that I do have other lines of credit . The other credit cards have zero balances since I did start by paying off the cards with the highest interest rates so currently I am utilizing 55 percent of my total credit availability . The cards I listed are the last of my aprox 10 credit cards and since I want to refinance asap Imam looking to see what the best way to handle the last four accounts would be using the last aprox &3000 before I go into the bank to start the refinance.
05-25-2013 04:10 PM
My suggestion still applies. Having even just 1 card maxed out is going to harm your credit a lot.
05-25-2013 08:32 PM
05-25-2013 09:47 PM
I've only lost 5 points and the maxed card has reported in addition to the other accounts that are still reporting balances because they haven't updated to zero yet.
Depends what else is in your file. I dropped from 660 -> 646 as a result of maxxing out a card (like 98%) one month as a result of high balance setting. 14 points is non-trivial in the mid-600's when trying to refinance anything. Trying my little experiment again this time maxxing out a 3K line but it's a higher overall revolving utilization and I got sloppy with my PIF balances unfortunately so not quite as applicable, but if I were just trying to bump FICO short term, I'd pay everything under approximately 75% and then zero as many cards as possible.
05-26-2013 03:05 AM
I have 4 credit cards that are maxed . 1) 1300. 2) 1400 3) 5400 4) 6300 my fico is 657 and I want to refinance asap . Is is better to pay each down to zero at a time or should I take the same amount of money I am putting towards credit cards and pay them all down at the same time . For example Im thinking Ill pay $3000 on cards over the next 2 months before I go refinance so should I pay off the 2 smaller cards to $0 and have 2 cards maxed or divide the $3000 across the cards?
Also I should add that I have a total of 10 credit cards but the other cards were the ones with the highest interest rates so I paid them off to zero already . I am currently utilizing 55 percent of my total credit .
There's little worse than maxing out cards, so I would think paying evenly, percentage wise, not dollar wise, would be better. That way none of the cards will be maxed out and your utilization would drop accordingly. Good luck to you.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.