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Need to raise 5 points...how to do it with high utilization?

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Anonymous
Not applicable

Need to raise 5 points...how to do it with high utilization?

I have a 695.  I need a 700 in the next 3-4 months.  I have $7500-10000.  

 

Should I even out my utilization between the credit cards OR pay off CC4 and CC5 from below?

 

Here is my breakdown:

  • 1 Student Loan 35K
  • 1 Car Loan 7K
  • CC1 - 95%  ~ 12300/13000
  • CC2 - 89% ~ 10200/11500
  • CC3 - 97% ~ 9700/10000
  • CC4 - 89% ~ 4500/5000
  • CC5 - 83% ~ 2900/3500
  • CC6 - 0% ~ 0/2200
  • CC7 - 0% ~ 0/2000
  • Total Revolving Utilization = 86%
  • No baddies.
  • Perfect payment history.
  • AAoA = 8 years.  
  • Total history = 15 years.

 

Remember that my focus is short term right now...just to get to 700. Any way it goes, I will still have utilization around 70%.  I do realize that it is best to have 1 card at 1-9% and rest at 0%. 

 

Thanks for your help!

 

Message 1 of 16
15 REPLIES 15
myjourney
Super Contributor

Re: Need to raise 5 points...how to do it with high utilization?


@Anonymous wrote:

I have a 695.  I need a 700 in the next 3-4 months.  I have $7500-10000.  

 

Should I even out my utilization between the credit cards OR pay off CC4 and CC5 from below?

 

Here is my breakdown:

  • 1 Student Loan 35K
  • 1 Car Loan 7K
  • CC1 - 95%  ~ 12300/13000
  • CC2 - 89% ~ 10200/11500
  • CC3 - 97% ~ 9700/10000
  • CC4 - 89% ~ 4500/5000
  • CC5 - 83% ~ 2900/3500
  • CC6 - 0% ~ 0/2200
  • CC7 - 0% ~ 0/2000
  • Total Revolving Utilization = 86%
  • No baddies.
  • Perfect payment history.
  • AAoA = 8 years.  
  • Total history = 15 years.

 

Remember that my focus is short term right now...just to get to 700. Any way it goes, I will still have utilization around 70%.  I do realize that it is best to have 1 card at 1-9% and rest at 0%. 

 

Thanks for your help!

 


Welcome to the forum

Paying off either or IMHO should get you 5 points 

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 2 of 16
Anonymous
Not applicable

Re: Need to raise 5 points...how to do it with high utilization?

Thanks!

Message 3 of 16
masscredit
Valued Contributor

Re: Need to raise 5 points...how to do it with high utilization?

Do any of those cards offer free/no fee balance transfers?

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 687 / TU - 663/ EX - 677

SDFCU Secured - $5000 / TD Bank - $5000 / Mercury - $5000 / Capital One Savor One- $5000 / Capital One QuickSiver - $4500 / Ally Master Card - $2800/ Walmart Mastercard - $2250

Andrews FCU SSL $1500
Message 4 of 16
Anonymous
Not applicable

Re: Need to raise 5 points...how to do it with high utilization?

Not the ones at 0. I did see an offer in the mail for the one with the ~$2900 balance for 4.99 with no fee.

Message 5 of 16
masscredit
Valued Contributor

Re: Need to raise 5 points...how to do it with high utilization?

Something that I did before I was able to truely pay my cards down. Had two cards with free (no fee) balance transfers. I staggered my statement closing dates throughout the month and put those two at the beginning of the month. I use my cards for some normal monthly expenses. I can usually charge about $850. per month. So what I'd do is take the $850. that I could use for the expenses and pay that amount on the Cap1 card that has no bal transfer fee. Plus I'd add more to that to work on paying down my cards. So we'll call it $2k. So that card would have a $0. balance. Then, after the new statement cut around the 7th, I'd do a balance transfer to pay one or more other cards so they would close with a zero or a low balance. Doing this would float the money from one card to another, lower my reported utilization and score me some points. This helped with some early credit line increases and kept my interest low until I was able to truely get the balances down.

 

Maybe you can take this info and reorganize your statement closing dates to do the same with yours. If it was me, I'd try to take care of a few cards that have lower balances and try to knock down the big ones. I believe cards that report more than 59% utilization really hurt your score. 

 

Good luck!

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 687 / TU - 663/ EX - 677

SDFCU Secured - $5000 / TD Bank - $5000 / Mercury - $5000 / Capital One Savor One- $5000 / Capital One QuickSiver - $4500 / Ally Master Card - $2800/ Walmart Mastercard - $2250

Andrews FCU SSL $1500
Message 6 of 16
Anonymous
Not applicable

Re: Need to raise 5 points...how to do it with high utilization?

Thanks! I wish I had cards with no balance transfer fees!

 

I think I am going to focus on CC 5 and get that knocked out.  While I cannot do your method, I am doing semi-monthly payments which i hope helps.

 

CC 2 hurts because its the only high balance card I have at 17.99%.  Everything else is around 10%.

 

 

Message 7 of 16
Anonymous
Not applicable

Re: Need to raise 5 points...how to do it with high utilization?

Pay both maxed out cards below 90%... By the look of your file that my even be enough. Your utilization is a little out of control. May we ask what you need the 700 for? Taking on more credit is not in your best interest at this time unless you're going to lower monthly payments somehow.
Message 8 of 16
Anonymous
Not applicable

Re: Need to raise 5 points...how to do it with high utilization?

Absolutely.  Utilization is exactly what I am working on.

 

The 700 is for a HELOC @ 3.25%

 

The HELOC is for debt consolidation.  It's not really about lower monthly payments as much as it is more $$ going to the principal.  I will be paying triple the total of my credit card minimums to the HELOC.

 

My goal is just to get out of revolving debt as quickly as possible.

Message 9 of 16
Anonymous
Not applicable

Re: Need to raise 5 points...how to do it with high utilization?

At least you realize you need to take care of the problem. If you have the equity it will definitely make it easier for repayment.
Message 10 of 16
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