Credit card utilization

[Anonymous]

Hi my scores are Experian 615 Transunion 607 Equifax 593. I have 2 credit card and 1 fingerhut. I'm at 91% utilization combined. If I pay them all down to 30% utilization. Can anyone give me an estimate of how many pts my credit will go up? Thanks

[HeavenOhio]

It's hard to estimate how much, but your scores will definitely go up. Aim for 28.9%. There's a scoring bump when you cross that threshold.

What are your balances and limits on these cards? With that information, someone here can probably offer some specific advice regarding a paydown strategy.

[Anonymous]

Great response as usual by Heaven.

PS.  A common but mistaken belief is that having your cards at under 30% is a sweet spot for scoring.  It is not.  It is certainly much better than 90%!  But the best thing for our OP to aim for is to pay off all of his CC debt in entirety and then continue to use one card, with it reporting a small balance.  The ideal place is < 8.9%.

Heaven knows this of course.  But our OP may not, so I am just tossing that out as an FYI.

[Anonymous]

Thank you both!

First premier credit limit is 500. My balance is 500
Milestones credit limit 300. My balances is 288
Fingerhut credit limit 400. My balance is 268

[DollyLama]

I would do as Heaven suggested first, then as CGID has suggested, starting with Milestone- which is a known card with an annual fee -and never ever extends credit line increases. Once your scores raise to around 650, I would try pre approvals with Cap One or Discover directly from their sites, and start getting out of the sub prime cards and to card that will grow with you in credit lines, non sub prime, and close out the Milestone (if in fact you are paying them an annual fee just to use the card). 

[Anonymous]

It's my experience that each percentage point drop in utilization will increase your credit and that includes going from 2 to 1%.   I have a very high total CL and my usual everyday use of my credit cards keep it at about 1-2 percent and it goes to 4 percent sometimes after a vacation.  I check my credit daily or at least every few days.  My credit score will change by a tiny amount 1-2 points when the utilization changes by just 1% when it's near zero.    Set <30% as your goal but also be aware that as you reduce it from there your credit will continue to go up.