Hi I am new...I have a question about the credit to debt ratio. I have done lots of reading and know that a lower ratio is better and am striving for that. But before I realized that- I recently made the mistake of transferring a bunch of small balances on high rate cards to a low rate/big balance card- not realizing HOW much the ratio effects the FICO score. We are looking to qualify for a car loan in the 4-6 months and wanted to tidy up the score as much as possible. The issue is that I have 3 cards that have a high ratio on them. I have an extra $1000 a month to put towards paying them down to improve the ratios, but am not sure if I should spread it across all 3 or focus just on the biggest ratio card or get the smaller cards to less than %50 then start attacking the bigger ratio card. Does that make sense? Example: $11,000 on a card with $12,000 at 8.9 $1900 on a card with $2000 at 3.9 $2800 on a card with $3500 at 8.9 My instinct says to get each of the smaller card to %50 quickly then start on the bigger card, but am still not certain...thoughts? Also- this may be for a different forum but what do you recommend to keep on eye on my FICO scores?
