Will it matter...

[cdtotten]

I have two cards that have rather large balances on them. I am curious if it will matter (from a scoring perspective) what order I pay them down/off.

Card 1: AMEX Blue which had a $13k limit they just slashed to $6.5k. The balance is $5,900.

Card 2: Chase Freedom with a $9.5k limit. Balance is $8k. 

Interest rates are the same. Should I pay them down equally... tackle one before the other... 

Just looking for feedback!

Thanks guys, this forum rocks!

[JoeBJay20]

The FICO scoring model takes into account your total utilization across all your credit lines compared to your total available credit.  Assuming those are your only two cards, your utilization is (13,900/16,000)*100 = 87 % (it always round up to the next whole percentage).  From a scoring perspective, you ideally want to have your utilization at 9% or less of your total available credit.  To add a few extra points, have all of your cards report a $0 balance, and then leave a 1-3% balance on the last card. 

[RobertEG]

I offer that it does matter.

The FICO scoring algorithm looks, of course, at overall % util.

But it also .looks, with about equal weight, at individual card util.

You are at over 80% util on the Chase card. 
And less than 50% on the AMEX.

I would concentrate on the Chase.

[smallfry]

---

@RobertEG wrote:

I offer that it does matter.

The FICO scoring algorithm looks, of course, at overall % util.

But it also .looks, with about equal weight, at individual card util.

You are at over 80% util on the Chase card. 
And less than 50% on the AMEX.

I would concentrate on the Chase.

---

Robert they slashed the credit limit on the Amex.

[RobertEG]

Whooa!  Did not pick that up!

So high % util on both.  With that in mind, it is a wash as to who to pay.

Message Edited by RobertEG on 06-16-2009 01:48 PM

[Anonymous]

Although after hearing how many people with high util on their AMEX have gotten CLD, I would probably pay that one off first.

[cdtotten]

Thanks for your help guys. I too am pretty frustrated with the CLDs at Amex.

[tiger67]

Keep in mind that Amex is not above balance chasing. It may be safer to pay down Chase first.