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Member
Posts: 8
Registered: ‎07-20-2007
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high util credit cards

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.
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Posts: 16,374
Registered: ‎03-12-2007
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Re: high util credit cards



solidusEE wrote:
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.

Card 1: 81% util
Card 2: 81%
Card 3: 70%
 
Paying all three down quickly so they report 1-9% util on each CC will net you max FICO points. In fact, once they all report at 1-9% util I wouldn't be surprised if your scores increase significantly.
Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
Member
Posts: 8
Registered: ‎07-20-2007
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Re: high util credit cards

[ Edited ]
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
Moderator Emeritus
Posts: 16,374
Registered: ‎03-12-2007
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Re: high util credit cards



solidusEE wrote:
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 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).
Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
Member
Posts: 8
Registered: ‎07-20-2007
0

Re: high util credit cards

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?
Moderator Emeritus
Posts: 16,374
Registered: ‎03-12-2007
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Re: high util credit cards



solidusEE wrote:
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?

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.
Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
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Community Leader
Epic Contributor
Posts: 28,098
Registered: ‎04-01-2007
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Re: high util credit cards

There's generally a 2 1/2 - 3 week gap between when your card reports and when you have to pay to avoid finance charges. (Check with your CCC, though, YMMV.) Once your piddly 1% posts, go ahead and PIF, and you won't have to pay the finance charge.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Contributor
Posts: 102
Registered: ‎06-01-2007
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Re: high util credit cards

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.  :smileyhappy:
Moderator Emeritus
Posts: 16,374
Registered: ‎03-12-2007
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Re: high util credit cards



jsmith12345 wrote:
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.  :smileyhappy:


Yes!
Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
Member
Posts: 8
Registered: ‎07-20-2007
0

Re: high util credit cards

the insanity of it all

but yeah i see what you mean about 0$ balances

a shame that they keep history of unpaid balances but they don't keep history of balances PIF
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