@JO4 wrote:Thank you for your reply. My bonus will be between $16,000.00 and $20,000.00 I am not sure what my debt to income ratio is and I only have one negative mark on my credit from January 2015.
Most of my debt is revolving accouts. I have a couple of credit cards BOA with a $9,300 balance, Capital One $4,000 balance, Sears $1,500 balance. I also have a revolving account with my bank with a $10,000.00 balance. I was thinking about paying off the $10,000.00 bank loan (my monthly payment is the highest with this loan), half of my BOA account $4,650.00, and $2000.00 of my Capital One account. I also have some fixed loans too; however, I think that the high balances on my revolving accounts are impacting my score more. Perhaps I am wrong. Any advise is greatly appreciated.
The ideal is to have all revolving accounts reporting at zero, except for one account reporting a small balance of 9% or less of the credit limit. If you can't get all but one down to zero, at least try to get more than half of them down to zero. It's also preferable for your overall revolving utilization to be 9% or less, and for no revolving account to have more than a 29% balance.
On installment loans it's ideal to have your aggregate utilization at 9% or less.
If you tell us your (a) credit limits on revolving accounts, (b) original loan amounts and current balances on installment loans, and (c) number of revolving accounts, if any, with no balance, we can probably give you some useful specific recommendations as to how to get the most bang for your bucks scorewise.
