Reply
Valued Contributor
Posts: 1,863
Registered: ‎09-20-2011
0

Paying down some cards, which way for best score impact?

I'm throwing a large chunk of money at my CC's but not quite enough to pay them off.  I have a couple of options:

 

I have a total of eight revolving lines between store and credit cards.

 

Option 1:

Amazon: $1,000/$4200

Lowes: $1050/$5600

Chase: $2k/$5K

 

Option 2:

Lowes: $1050/$5600

Amazon $0/$4200

Chase: $3k/$5k

 

Essentially the debate is between having two cards with a balance but Chase >50% UT.  Or having three cards with a balance but having <50% UT on all cards.  All interest rates are 0% on all three cards.  Everything with a interest rate is being paid off. (four other cards)  I'm leaning towards option 1.  If nothing else mentally it feels better with the high balance at $2k.  

 

Thoughts?

 

Valued Contributor
Posts: 1,292
Registered: ‎08-19-2012
0

Re: Paying down some cards, which way for best score impact?

From my experience less cards with a balance = higher score.  Everyones profile is different though so you may have different results

Chase Sapphire Perferred | Chase Freedom | AMEX Platinum | AMEX Delta Platinum | AMEX SPG | Capital One Venture | Capital One Quicksliver | Discover IT | ABFCU Visa | Citi AA WEMC
Valued Contributor
Posts: 1,863
Registered: ‎09-20-2011
0

Re: Paying down some cards, which way for best score impact?

I redid my calculations.  I can squeeze in paying everything off except Chase.  It'll leave Chase at 64% but hopefully I can get it under 50% in two or three months.  I think that's going to be the best route.

Frequent Contributor
Posts: 252
Registered: ‎02-19-2013
0

Re: Paying down some cards, which way for best score impact?

I would pay off all of the cards except the Chase one. Better to have one reporting a balance with all the others reporting zero.
      

      

Community Leader
Senior Contributor
Posts: 27,310
Registered: ‎02-07-2013
0

Re: Paying down some cards, which way for best score impact?

[ Edited ]

If you pay everything off except chase it leaves UTL @ about 15% which should increase your scores 

Edit: total available credit $14,800

+ Chase ink =




Valued Contributor
Posts: 1,863
Registered: ‎09-20-2011
0

Re: Paying down some cards, which way for best score impact?

[ Edited ]

myjourney wrote:

If you pay everything off except chase it leaves UTL @ about 15% which should increase your scores 

Edit: total available credit $14,800


Should be right at 13.5% considering my other lines, hoping for a 70 or so point swing.  It was ~700 when I got my mortgage with the cards paid off.  Now with the mortgage reporting for a year and utility low I'm hoping to get back to that level, at 653 EQ right now.

 

Also going to hit up GE and Amex for CLI's once the new balances report. 

Community Leader
Senior Contributor
Posts: 27,310
Registered: ‎02-07-2013
0

Re: Paying down some cards, which way for best score impact?


boomhower wrote:

myjourney wrote:

If you pay everything off except chase it leaves UTL @ about 15% which should increase your scores 

Edit: total available credit $14,800


Should be right at 13.5% considering my other lines, hoping for a 70 or so point swing.  It was ~700 when I got my mortgage with the cards paid off.  Now with the mortgage reporting for a year and utility low I'm hoping to get back to that level, at 653 EQ right now.

 

Also going to hit up GE and Amex for CLI's once the new balances report. 


I really think in this case you would see an substantial jump in your score but question why is EQ score so low? CLI would be great all around

+ Chase ink =




Valued Contributor
Posts: 1,863
Registered: ‎09-20-2011
0

Re: Paying down some cards, which way for best score impact?


myjourney wrote:

boomhower wrote:

myjourney wrote:

If you pay everything off except chase it leaves UTL @ about 15% which should increase your scores 

Edit: total available credit $14,800


Should be right at 13.5% considering my other lines, hoping for a 70 or so point swing.  It was ~700 when I got my mortgage with the cards paid off.  Now with the mortgage reporting for a year and utility low I'm hoping to get back to that level, at 653 EQ right now.

 

Also going to hit up GE and Amex for CLI's once the new balances report. 


I really think in this case you would see an substantial jump in your score but question why is EQ score so low? CLI would be great all around


Combination of a few reasons I imagine.  I added two car loans in December so that's two new accounts plus the associated INQ's.  INQ's are also high at 6.  Three are from the car loans but two of them were coded as credit union and not auto so it's dinging the score.  Three of those will be over a year old this month so they'll drop off the score ding.  I have one collection left that's due to fall off this summer.  I'm shooting for 750 once that falls off but not sure if my AAoA will be enough.  At 3.8 years on EQ but 5.1 on EX but I have no way of checking that score.(one car loan and another installment loan only report to EQ)  I have a DCU account so I get my EQ score there. 

Community Leader
Senior Contributor
Posts: 27,310
Registered: ‎02-07-2013
0

Re: Paying down some cards, which way for best score impact?


boomhower wrote:

myjourney wrote:

boomhower wrote:

myjourney wrote:

If you pay everything off except chase it leaves UTL @ about 15% which should increase your scores 

Edit: total available credit $14,800


Should be right at 13.5% considering my other lines, hoping for a 70 or so point swing.  It was ~700 when I got my mortgage with the cards paid off.  Now with the mortgage reporting for a year and utility low I'm hoping to get back to that level, at 653 EQ right now.

 

Also going to hit up GE and Amex for CLI's once the new balances report. 


I really think in this case you would see an substantial jump in your score but question why is EQ score so low? CLI would be great all around


Combination of a few reasons I imagine.  I added two car loans in December so that's two new accounts plus the associated INQ's.  INQ's are also high at 6.  Three are from the car loans but two of them were coded as credit union and not auto so it's dinging the score.  Three of those will be over a year old this month so they'll drop off the score ding.  I have one collection left that's due to fall off this summer.  I'm shooting for 750 once that falls off but not sure if my AAoA will be enough.  At 3.8 years on EQ but 5.1 on EX but I have no way of checking that score.(one car loan and another installment loan only report to EQ)  I have a DCU account so I get my EQ score there. 


Great plan of attack! I think your right once collection falls off getting UTL down and INQ's over a year old not dinging you mid 700's should be within your reach

+ Chase ink =




Valued Contributor
Posts: 3,099
Registered: ‎10-02-2012
0

Re: Paying down some cards, which way for best score impact?

I would ignore my FICO score and put the money towards the cards with the highest APR's.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
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.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

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.