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haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
Re: Small Credit Card Limits
Hi, Amie, welcome to the forums!

When it comes to paying off your loan, usually it wouldn't hurt, but if it's your only installment loan, you might lose more points for no longer having an open loan in your credit mix. Dumb, but there it is. Do you have an open mortgage, student loan, or any other installment loan? If so, I don't think you'll lose but a few points for paying off the loan, and financial good sense is important, too!

Your best bet will be to do as the others say and pay down your cards to under 10%. And for a maximum boost, pay the two smaller cards off completely, and let only the $2K card report. And Lordy, no, don't close them!

If your payment history is clean on your cards, you might consider asking your CCC's for CL increases once you pay down what you have. A lot of lenders are freaking out these days, so I would definitely have your util down before asking. And you want to be sure that they will do it without a hard inquiry on your reports, ouch.

Do you know about how to pay your cards down or off before they report balances to the credit bureaus? Just paying a couple of weeks early can bump your scores up nicely.

Don't know if you've done this yet, but please read Credit Scoring 101:

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

You'll have a much better understanding of how credit works, and why it would be an awful, awful idea to close your existing cards! :smileywink:
* 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