Utilization/Debt Ratio Question

[Anonymous]

Hello All,

   A question about utilization. With a high CC debt ratio (72%), and some cards at zero balance, some at 95% utilization, Is it better to pay down the OVERALL total balance, or to pay down the + 90% utilized cards? Or, does it matter?

Thanks

[haulingthescoreup]

Hi, welcome to the forums, and I love your screenname!

It's generally better to do it in steps. First, get the crazy-high ones down under 50%, especially to (cross fingers) avoid AA (Adverse Action) by creditors. Once everything is 49% or below, start taking it down in whatever way makes sense to you --knock off the small balances first, the highest interest first, the cards you want to keep safe first, etc.

Getting the high util cards down first is also important for your score, to avoid penalties for being maxed out.