Which credit card to pay off?

[Anonymous]

I have several credit cards, 2 of them have balances. Discover w/ $5,500 limit at $3,500 and Wells Fargo w/ $15,800 limit at $5,000. I am buying a house in october and want the highest credit score possible, which is currently at 696. I have $3,000 to make payments right now. Which card do you suggest I make a payment to and how much? I know it is good to stay below 10% usage, but on which card would this benefit me the most? The Discover card has a 0% for life rate and the Wells card has 4.9% till next year. Thank you!

[Anonymous]

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jacobshapiro wrote:
I have several credit cards, 2 of them have balances. Discover w/ $5,500 limit at $3,500 and Wells Fargo w/ $15,800 limit at $5,000. I am buying a house in october and want the highest credit score possible, which is currently at 696. I have $3,000 to make payments right now. Which card do you suggest I make a payment to and how much? I know it is good to stay below 10% usage, but on which card would this benefit me the most? The Discover card has a 0% for life rate and the Wells card has 4.9% till next year. Thank you!

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IMO, you should pay down the balance on Wells Fargo because of the interest rate. You will be paying less interest that way.

However, applying $3k you have to either of the cards will bring down your util by a good amount. It doesn't really matter which card you apply these payments to. Since your overall util % will drop, your score should go up considerably. If you have more money to pay, pay down even more. Perfect situation should be to get your util between 1-9%. Right now, you are at 40%. Paying down $3k would bring it to 25%.

[Anonymous]

IMO. I would make a payment of 2K to the balance on Discover, and 1K to the Wells account. I think that would get you below 30% on both. May give you a little bump in your score. Also will bring down your debt/income ratio.