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my cc debt ; how much should i pay off to keep my util at a good number?

Established Contributor

my cc debt ; how much should i pay off to keep my util at a good number?

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?

Wallet: Barclay-5k, Citadel MC- 5k, Slate- 4k, Freedom- 3k, BOA- 3k, Citi- 2k, AMEXBCE- 2k and more...
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Valued Contributor

Re: my cc debt ; how much should i pay off to keep my util at a good number?


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?


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

Message 2 of 8
Frequent Contributor

Re: my cc debt ; how much should i pay off to keep my util at a good number?

 

 

 

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 Smiley Happy

Starting Score: 526 EXP 09/2012 600 FICO 10/2012 608 EX (lenderpull)11/2012
Current Score: 705 FICO TU (10/2014)Take the FICO Fitness Challenge
Message 3 of 8
Established Contributor

Re: my cc debt ; how much should i pay off to keep my util at a good number?

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.

Wallet: Barclay-5k, Citadel MC- 5k, Slate- 4k, Freedom- 3k, BOA- 3k, Citi- 2k, AMEXBCE- 2k and more...
Message 4 of 8
Valued Contributor

Re: my cc debt ; how much should i pay off to keep my util at a good number?

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!


In My Wallet: Amex BCP (12/12) $50,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Prestige (4/16) $30,000

Last App: June 27, 2015
Message 5 of 8
Member

Re: my cc debt ; how much should i pay off to keep my util at a good number?


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.


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.

Message 6 of 8
Member

Re: my cc debt ; how much should i pay off to keep my util at a good number?

looks like snacktrader is a faster typer.

Message 7 of 8
Highlighted
Established Contributor

Re: my cc debt ; how much should i pay off to keep my util at a good number?

Thanks all the advice guys. Yeah the only one I'm not paying off completely is interest free for 2 more years.
Wallet: Barclay-5k, Citadel MC- 5k, Slate- 4k, Freedom- 3k, BOA- 3k, Citi- 2k, AMEXBCE- 2k and more...
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