Frequent Contributor
ktl72455
Posts: 440
Registered: ‎12-09-2012
Fico score boost and 3 credit card balances

‎12-10-2012 09:23 AM

Hello everyone! I have a question and looking for some input.

 

CC #1 balance of 8,300 Sams club Discover

CC# 2 balance 7,000 AARP Chase

CC#3 balance of 6500 Discover

 

All 3 close to maxed out. I have 2000.00 extra to apply. Do I apply it all to one or divide it up by 3 to lower all 3 balances?

 

12/4/12 TU 589 MyFico ~EQ 579 MyFico ~EX 577(Fako)
5/11/13 TU 633 MyFico~EQ 660 ~MyFico EX 590(Fako)
Goal 700 across all 3
My Wallet: Cap1 2K ~FH 300 Credit One 550~Orchard Bank 300~ Matrix Discover 300 ~NFCU nRewards 20K****AAoA 5yrs 10mo (5/11/13)
Neg: Tax lein PD (fall off 4/16) ~2-Cap1 CO's PD (fall off 1/17)~Forclosure (fall off 1/16) ~CC Co (fall off 11/14)
(336 Views)
 
Valued Member
Brandnick
Posts: 78
Registered: ‎11-07-2012
Re: Fico score boost and 3 credit card balances
[ Edited ]

‎12-10-2012 10:41 AM - edited ‎12-10-2012 11:00 AM

Utilization is calculated amongst all your credit cards so if you shared the $2000 on all the cards vs. Paying just one card your utilization will be the same.

 

E.g. 

 

- Sam - $8300 with $8500 limit

- AARP Chase - $7000 with $7500 limit

- Discover $6500 with $7000 limit

 

How utilization is calculated

 

$8300 + $7000 + $6500  = $ 21800 balance 

 

$8500 + $7500  $7000 = $  23000 Limit

 

Calculation

 

Total Balance divided by Total Limit =  Utilization

 

$21800 / $23000 = .974 ( x 100) = 94.7% Utilization

 

 

My suggestion would be is to pay this extra $2000 on the credit that has the highest Apr 

 

 

Current Score: 771 - 11/21/2012/ Amex Pull
Late Payment: 0 / Collections: 0
AAOA: 6.3 Years

"My Scores Yesterday or Last week or even Last month has no value when applying for credit today. The value is not in my score but the information in my credit file. Once the information is good the score will follow"
(320 Views)
 
Frequent Contributor
ktl72455
Posts: 440
Registered: ‎12-09-2012
Re: Fico score boost and 3 credit card balances

‎12-10-2012 02:31 PM

This helps alot! Thanks for the information!

Now my next question is I have a CO on a CC from 2yrs ago and its still showing a balance of 1300.00.  Since that is a CC is that balance factored in to my Utilization or just a baddie that I can try a PFD with?

12/4/12 TU 589 MyFico ~EQ 579 MyFico ~EX 577(Fako)
5/11/13 TU 633 MyFico~EQ 660 ~MyFico EX 590(Fako)
Goal 700 across all 3
My Wallet: Cap1 2K ~FH 300 Credit One 550~Orchard Bank 300~ Matrix Discover 300 ~NFCU nRewards 20K****AAoA 5yrs 10mo (5/11/13)
Neg: Tax lein PD (fall off 4/16) ~2-Cap1 CO's PD (fall off 1/17)~Forclosure (fall off 1/16) ~CC Co (fall off 11/14)
(288 Views)
 
Valued Member
Brandnick
Posts: 78
Registered: ‎11-07-2012
Re: Fico score boost and 3 credit card balances
[ Edited ]

‎12-10-2012 03:33 PM - edited ‎12-10-2012 03:41 PM

Yes unfortunately  it's being factored as part of your utilization and also as a baddie, so I would use the $2000 to help with the PFD. I would offer the 40% of the debt and see what they say. but get it in writing before you pay. 

 

 

Also most importantly is get your utilization down to 1-9% 

 

Current Score: 771 - 11/21/2012/ Amex Pull
Late Payment: 0 / Collections: 0
AAOA: 6.3 Years

"My Scores Yesterday or Last week or even Last month has no value when applying for credit today. The value is not in my score but the information in my credit file. Once the information is good the score will follow"
(278 Views)