Okay, so i've been reading the forums and pretty much everything is really informative.
I just have a request for advice on how to pay my cards for maximum point increase. I have the following:
1 card with $1500 CL and $1210 balance
1 card with $1000 CL and $810 balance
1 card with $1000 CL and $700 balance
Currently I have the means of paying all of these balances down and reducing them to $0. However, what would you guys recommend I do? Pay it all completely and get rid of the balances in one fell swoop? or pay down 50% on each card and then pay whatever is left on a later date (or something similar to this) ?
My current EQ score is 650.
If each CC reports 1-9% utilization, you will get max FICO points. PIF (paying in full) won't hurt your scores but you don't get the max points with FICO's utilization percentage calculations. There are two types of util calculation percentages: one calculates your util% on each revolving (CCs, lines of credit)account and the second calculates your overall util% on all revolving accounts (cumulative).
see, it's that 1% that's throwing me off
so you recommend that i leave a balance on the card?
Message Edited by solidusEE on 09-26-2007 04:16 PM
If you are not needing to apply for anything then I say PIF. The reason you get max points with 1-9% util reporting is it shows responsible CC usage. FICO or any other scoring model has trouble determining risk when your CCs always report $0 balances...it would almost look like your not using your CCs. If you need the extra points just keep your balances at 1% this way you will pay virtually nothing in interest or finance charges.
Okay, let me get this straight.
If I pay the balances completely, I won't get as many points as say...
If I pay the balances down and leave around a 2% balance?
That sounds pretty messed up considering the required monthly payments, haha.
Say it ain't so?
So, if you have 3 cards reporting as follows:50% utiliziation, 15% utilization and 0% utilization are you better off transferring balances around to get to 10% or below utilization on all 3?Excuse the ignorance, just want to make sure I understand this.