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

Valued Contributor

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?

 

14 REPLIES
Valued Contributor

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

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

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.
   Total CL: $177,300
 Highest CL: $10,000
  Average CL: $6,300
 Total PLOC: $26,000
     AAoA: 3 yrs & 11 mos
         Utilization: 7%
Inq: 11 (EQ) | 10 (TU) | 9 (EX)
         Derogatories: 0
         
Super Contributor

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

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

Edit: total available credit $14,800

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?
Valued Contributor

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


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. 

Super Contributor

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

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?
Valued Contributor

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. 

Super Contributor

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

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?
Valued Contributor

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    


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