Maxed out 0% BT cards and FICO scores

[dersona453]

In addition to knocking out cards charging interest, is there also a benefit in knocking down the utilization on 0% balance transfer cards before the promo rate expires? Conversely, is there a harm in leaving those cards at a high utiilization rate during the entire promotional period?

[user5387]

High overall utilization, high utilization of individual cards, and a high proportion of cards with balances all hurt your scores.

If you max a card, the fact that it's a 0% BT card won't help you for scoring purposes, and you may pay a high price for doing so.

[dersona453]

Makes sense. I'm trying to determine the best course of action. Pay off only cards with interest, throw more at the BT's or do some combination of both. Any advice/experience would be appreciated.

[gdale6]

I would get the 0% cards down below 90% of their CL this will get them out of maxed out status, then I would pay minimums until all interest charging cards are paid off.

[user5387]

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@dersona453 wrote:

Makes sense. I'm trying to determine the best course of action. Pay off only cards with interest, throw more at the BT's or do some combination of both. Any advice/experience would be appreciated.

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If it was me, I'd probably choose some threshold like 70%, and not utilize any card above this amount, even if it meant paying extra interest.

Other people see this differently, of course, and it depends on how tolerant your various creditors are to high utilization on other accounts.