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Established Member
gandalfdawize
Posts: 14
Registered: ‎09-15-2007
0

Credit Card Utilization

Looking for a little advice on credit card utlization.  I currently have 10 credit cards with varying credit lines from $25,000 to $5,000 and am currently $101,000 in credit card debt with my Fico score 604.  I would like to purchase a home and want to increase my score to over 720.  I have $107,000 in my stock portfolio which I will cash out and would appreciate advise on how best to pay down my credit cards.  Five of the credit cards DON't report the amount of the credit card balance where the other cards that do report the balance total about $57,000.  The fico simulator indicates that my score will go to over 720 if I pay down $55,000 in debt in one month.  Should I pay the credit cards off first that do report balances first to get the most impact or should I evenly distribute the debt across the board for all the credit cards.  Thanks 
Established Member
jbmello
Posts: 12
Registered: ‎03-07-2007
0

Re: Credit Card Utilization

Add up the amounts of the cards that do report and pay them down 0 to 9% if possible. Banks don"t always like to see high credit availble either unless there is high income.

I am assuming that the cards not reporting are business cards? another way would be to tranfer some of the balences to those cards at a reduced interest rate if they offer it. I tranfer balences to my business cards when I need to raise my score to buy something then after the special transfer rate is over I transfer it back or pay it off.

the fico score does not see cards that dont report balences.
Established Member
gandalfdawize
Posts: 14
Registered: ‎09-15-2007
0

Re: Credit Card Utilization

Hi,
Nope,  5 CitiBank Premier Personal cards that don't display the high credit limits unlike my other revolving credit cards. 
Senior Contributor
smallfry
Posts: 4,831
Registered: ‎04-20-2007
0

Re: Credit Card Utilization

[ Edited ]

gandalfdawize wrote:
Looking for a little advice on credit card utlization. I currently have 10 credit cards with varying credit lines from $25,000 to $5,000 and am currently $101,000 in credit card debt with my Fico score 604. I would like to purchase a home and want to increase my score to over 720. I have $107,000 in my stock portfolio which I will cash out and would appreciate advise on how best to pay down my credit cards. Five of the credit cards DON't report the amount of the credit card balance where the other cards that do report the balance total about $57,000. The fico simulator indicates that my score will go to over 720 if I pay down $55,000 in debt in one month. Should I pay the credit cards off first that do report balances first to get the most impact or should I evenly distribute the debt across the board for all the credit cards. Thanks

Not enough info to hazard an educated guess but I would be suspicious of a 115 point jump in your score even if you were to go from 90% utilization to under 10%. How old are the accounts how long have you had cards? Lots of questions not enough info.

Message Edited by smallfry on 09-22-2007 10:29 PM
Established Member
gandalfdawize
Posts: 14
Registered: ‎09-15-2007
0

Re: Credit Card Utilization

Cards are three years old now and utilization is maxed out with fico being 604.   Any help would be sincerely appreciated on the best way to pay off the credit cards.   Pay down the cards that report balance and credit card limits OR pay down evenly across all cards for the best chance to raise fico score?
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007
0

Re: Credit Card Utilization

Put it all on a spreadsheet or MS Money.

either pay the Highest apr in full and work you way down the list or

Pay all each down under 50% or the high balance/CL to start with.

The Revolving cards you have that only report the High Balance instead of the credit limit can usually be changed to report the limit-BUT they may start charging a AF.

Good luck -

When we did this last year - we PIF the ones we had with DEFAULT apr's applied (your probably not in this situation) and then paid everything under 50%. Asked for APR reductions and CLI's- then repeated.
Established Member
gandalfdawize
Posts: 14
Registered: ‎09-15-2007
0

Re: Credit Card Utilization

Thanks for the great advice!

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