Credit Cards

[colindidit]

my total cc debt is about 5500...my total credit limits is some where around 26000. i've read about people getting denied credit cards or getting lower scores for not having much use of their credit..how much should i pay off and what is a good util number to have consistently to raise my score?

[bs6054]

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colindidit wrote:

my total cc debt is about 5500...my total credit limits is some where around 26000. i've read about people getting denied credit cards or getting lower scores for not having much use of their credit..how much should i pay off and what is a good util number to have consistently to raise my score?

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Are you paying interest on that debt (or is that just balance that you PIF or have 0% APR for now)?   If you are paying interest, then pay as much off as you can NOW!

Otherwise, the view here is that you maximize score by having just one credit card report a non-zero balance, showing between 1-9% utilization

[NewbieReed]

From what I gather the sweet spot to see bumps in ur score your utilization is to have all cards at 0$ balance except for 1. That one card should be between 5%-9% util whenthe statement hits/the company reports to the CRAs.

Editted: because Im a dummy and read ur post wrong

[colindidit]

well in two weeks im planning on paying every card off except one which is my sony financing...i will leave 275 on that which will leave me at about 2 percent util...im at about 21 right now. I just want to make sure im not paying too much...and no its all accruing interest.

EDIT: I actually have about 27440.paying all that off will leave me at about 1 percent.

[SnackTrader]

Remember, there is a difference between carried balance and utilization. Utilization is calculated from what is reported on your credit bureaus each month, while a carried balance revolves over several months. Even if you pay all your cards off, any spending you put on your card during a month that is NOT paid off before the statement cuts will be reported to your credit bureaus and factored into utilization. 

Just thought I would clarify in case you weren't aware. But still, paying off that debt will really help you financially in the long term, even if it leads to some short term pain. Make sure you stick with you plan - and congratulations if you do!

[CreditSnob]

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colindidit wrote:

well in two weeks im planning on paying every card off except one which is my sony financing...i will leave 275 on that which will leave me at about 2 percent util...im at about 21 right now. I just want to make sure im not paying too much...and no its all accruing interest.

EDIT: I actually have about 27440.paying all that off will leave me at about 1 percent.

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You need to pay everything off if it is all accruing interest.  When people say to let the card "report a balance", that is very different from letting a card "carry a balance".   The carried balance should be $0, or as close as to $0 as you can afford.

The reported balance is just the balance on your CC statement (usually, depends on the bank), of which you usually have a 25 day grace period to pay in full.  People reduce their 'reported balance' to $0 when they pay a few days before the statement cuts.  You don't have that problem.

[CreditSnob]

looks like snacktrader is a faster typer.

[colindidit]

Thanks all the advice guys. Yeah the only one I'm not paying off completely is interest free for 2 more years.