Revolving Credit?

[Anonymous]

Okay, so here's the general breakdown.

I have two credit cards:  maximum balance of 8500 (owned for 6 years) on one card, 3,000 on the other.  Total it up, I have 11,500 available credit (if my balance was 0).  My current balance is $7000 of what I owe, and I'm receiving an inheritance of $6000.  I was wondering if I put all that toward my balance(s), which would leave me owing a total of $1,000.

I hear that you need to keep credit revolving, but I wasn't sure how low I could go to call it "revolving". I plan on refinancing my home around mid-September which is two months away. I wanted to know if I should A) pay all 6000, keep 1000 as balance, pay the minimums due for the next two months. B) Pay slightly less than 6000, keeping a slightly greater than balance of $1000 and pay minimum dues for the next two months. C) *insert other alternative*

[Anonymous]

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domerdel wrote:

Okay, so here's the general breakdown.

I have two credit cards:  maximum balance of 8500 (owned for 6 years) on one card, 3,000 on the other.  Total it up, I have 11,500 available credit (if my balance was 0).  My current balance is $7000 of what I owe, and I'm receiving an inheritance of $6000.  I was wondering if I put all that toward my balance(s), which would leave me owing a total of $1,000.

I hear that you need to keep credit revolving, but I wasn't sure how low I could go to call it "revolving". I plan on refinancing my home around mid-September which is two months away. I wanted to know if I should A) pay all 6000, keep 1000 as balance, pay the minimums due for the next two months. B) Pay slightly less than 6000, keeping a slightly greater than balance of $1000 and pay minimum dues for the next two months. C) *insert other alternative*

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Paying$6K down on that $7K balance will be really good for you as it will bring your overall util to within 1-9%. That will give you the best score boost. In order to refi at the best rate, you need to have a better score. Paying down that balance will certainly help you do that.

[Anonymous]

Okay, and that was my initial plan, but i did not want to sacrifice the "revolving" part, and wasn't sure if there was a figure/range based on the percentage of what I owe. 

So what you're saying is just as long as it isn't 0, but close to that, I should be good.

[Anonymous]

yup. that would be good.