cancel
Showing results for 
Search instead for 
Did you mean: 

Minimizing utilization

tag
jbee
Regular Contributor

Minimizing utilization

My overall utilization is at 52%.  Individual card balances are below:

 

cc1: $0/$400

cc2: $350/$750

cc3: $440/$1500 (0% interest until 2011)

cc4: $1368/$1500

 

If I bring it down to 33% next week, do you think I will see a nice score increase?  I know I'm being dinged for a maxed out card (cc4= 91%), so I will pay $350 on this one to bring it down to 67%.  After my payment, the balances should be close to the following.

 

cc1: $0/$400

cc2: $0/$750

cc3: $400/$1500 (0% interest until 2011)

cc4: $1000/$1500

 

I know the goal is to get the card <9% but I won't be able to do this until the end of August.  I'm buying a house and I've already been pre-approved with my scores but since I'm building a new construction, they will have to re-pull my credit again since the old one will expire next week and the house won't be ready for another couple months.  My goal is to have all 3 scores around 730-740.  Do you think it will beneficial to pay cc3 off and have 3 cards reporting at 0 and only one with a balance?

 

Thanks for your help.

 


3/1/10: TU: 615, EQ: 640, EX: ???
6/8/10 (LO pulled): TU: 704, EQ: 689, EX: 694
Goal Score by Oct. 1: TU: 750, EQ: 750, EX: 750

Take the FICO Fitness Challenge
Message 1 of 3
2 REPLIES 2
vanillabean
Valued Contributor

Re: Minimizing utilization

The question is this: how far down would you need to bring the balance on cc4 before the benefit of having only card report a balance outweighs its high balance?

It's much like this: throw a stick into a river and watch where the dog will jump into the water. A study has been made about just that, and dogs instinctively know without doing the math. They know that it's faster running than swimming.

As I see it (others may see it differently), it's imperative to bring down cc4 under 50%, which is ~$250 below the $1,000. So run!

Message 2 of 3
jbee
Regular Contributor

Re: Minimizing utilization

Thanks!!


3/1/10: TU: 615, EQ: 640, EX: ???
6/8/10 (LO pulled): TU: 704, EQ: 689, EX: 694
Goal Score by Oct. 1: TU: 750, EQ: 750, EX: 750

Take the FICO Fitness Challenge
Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.