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Member
boostdog
Posts: 23
Registered: ‎11-13-2008
0

which is better to pay down to 50% or 25% of a credit limit

Just as the title says,,,i need some advice to fig. out which is better.

 

i have 7 accounts that i can pay down to 50% of the limit or 6 accounts down to 25% of the credit limit.

 

please help...trying to buy a house.

 

thanks in advance!

Epic Contributor
Creditaddict
Posts: 21,596
Registered: ‎10-23-2007
0

Re: which is better to pay down to 50% or 25% of a credit limit

so your saying pay down 6 accounts to below 25% and have 1 account above 50%

or pay all 7 to below 50%?

 

I say either pay down 6 to below 25% or how many could you completely pay off and how many accounts would that leave with balances and at what util %? 

Fico Scores: EQ- 653 Cap1., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
65 Cards and Counting :smileytongue:
Member
boostdog
Posts: 23
Registered: ‎11-13-2008
0

Re: which is better to pay down to 50% or 25% of a credit limit

no what i mean is this..sorry if i was not clear -

 

pay off 7 cards down to 50% of limit

 

or pay 6/7 down to 25% of their limit. the 7th account is much larger than the 6 smaller ones.

Epic Contributor
Creditaddict
Posts: 21,596
Registered: ‎10-23-2007
0

Re: which is better to pay down to 50% or 25% of a credit limit

your saying pay off and down to below 50% of limit in same sentence.

are you paying DOWN the balance or paying OFF the entire balance?

 

I still go back to my original question how many accounts could you pay COMPLETELY off and what would that leave on your other accounts and how many would still have balances 

Fico Scores: EQ- 653 Cap1., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
65 Cards and Counting :smileytongue:
Member
boostdog
Posts: 23
Registered: ‎11-13-2008
0

Re: which is better to pay down to 50% or 25% of a credit limit

sorry....

 

 

i mean pay down the balances on 6 cards down to 25% of limit or pay down 7 cards down to 50% of limit. which is best to make my score climb fast?

Epic Contributor
Creditaddict
Posts: 21,596
Registered: ‎10-23-2007
0

Re: which is better to pay down to 50% or 25% of a credit limit

I would say under 25% or possibly paying some completely off.
Fico Scores: EQ- 653 Cap1., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
65 Cards and Counting :smileytongue:
Frequent Contributor
PayingTheBills
Posts: 353
Registered: ‎01-29-2009
0

Re: which is better to pay down to 50% or 25% of a credit limit

If you want, post more info on each account, including the interest rate for each one.

 

For eample, if you had 3 credit cards:

 

Visa $9,000 limit, $7,000 balance, 9.9% APR

Amex $12,000 limit, $7,500 balance, 8.9% APR

BP Gas Card $500 limit, $200 balance, 14.9% APR


Starting Score: 540 EQ 517 TU on 11/17/08
Current Score: 668 EQ 715 TU
Goal Score: 760 EQ 760 TU


My Credit Repair Journal
Member
boostdog
Posts: 23
Registered: ‎11-13-2008
0

Re: which is better to pay down to 50% or 25% of a credit limit

hsbc orchard   balance 265.62    % rate - 9.9   balance after payment 40 credit limit 300

 

hsbc household balance 291.23   % rate - 9.9 balance after payment 66.23 credit limit 300

 

HSBC Furniture Row balance 994.96 % rate  25.4  balance after payment 349.96 credit limit 1400

 

legacy bank balance 250  % rate ( not sure at this moment as i can't see it online ) balance after payment - 60 credit limit 250

 

credit 1 balance 405.03 % rate ( not sure at this moment as i can't see it online ) balance after payment 100 credit limit 400

 

credit 1 balance 328.79 % rate ( not sure at this moment as i can't see it online ) balance after payment 80 credit limit 350

 

jc penny balance 278.69 % rate ( not sure at this moment as i can't see it online ) balance after payment 53.69 credit limit 300 ( this was just reduced THANKS GEMBC!!!)

 

 

we decided to just pay all 7 accounts to 25% or less of the credit limit and also paid of 2 derogatory items we have on our credit.

 

currently my wife is at a 578 and i am at a 543...do you think doing all of this will boost us to over 600 by doing a rapid rescore?

Frequent Contributor
PayingTheBills
Posts: 353
Registered: ‎01-29-2009

Re: which is better to pay down to 50% or 25% of a credit limit

You went from 85.3% util to 22.7% util overall.  AWESOME job!

Assuming you acquired no new baddies since your last report, once all these balances pass their statement date, this will help your FICO score a lot.

 

Could you give more info on the "derogatory" accounts you paid off?  Did you do a PFD? Were these collection accounts?

 

And before anyone guesstimates your new FICO score, we'd need some more infor about your credit profile. Any installment loans, or a mortgage?  Any judgements, bankruptcies, charge offs?  How old are you accounts?  The more info the better. :smileyhappy:


Starting Score: 540 EQ 517 TU on 11/17/08
Current Score: 668 EQ 715 TU
Goal Score: 760 EQ 760 TU


My Credit Repair Journal
Frequent Contributor
PayingTheBills
Posts: 353
Registered: ‎01-29-2009
0

Re: which is better to pay down to 50% or 25% of a credit limit

Also, cross your fingers that none of these companies decide to balance chase you now that you've paid them down after being so close to maxed out.

Starting Score: 540 EQ 517 TU on 11/17/08
Current Score: 668 EQ 715 TU
Goal Score: 760 EQ 760 TU


My Credit Repair Journal

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