Established Contributor
Posts: 650
Registered: ‎03-01-2012
Re: prioritize paying of CC balance vs bringing 50% below

shorttough wrote:

hi all,

I have two credit cards that i feel i could potentially lower my balance on as I have limited cash.


Discover card - 1201.00  LIMIT: 2500

Citi Siplicity - 5921.00     LIMIT: 8000


Now, should i prioritize paying off the Discover Card ?  and then bring the Citi CC balance to 4000.00 from 5921.00? for great impact on scores?


Current Scores are:

TransUnion : 727

Equifax: 719

Experian: 676

There are three factors at work here.


1. Overall Util - for this it doesn't matter what you do.

2. Undividual Card Util - This is a factor smaller thatn the first.  I think it starts to hurt when it's very high >80%.  So this should matter either.

3. Number of cards reporting a balance. - This is a factor smaller than #1, but, may be a significant factor in your case specially if you only have those two cards.


Given the above,  I would pay Discover in full and pay down Citi as much as you can.



My Starting Score: EQ: 691 (11/30/11) TU98: 726 (11/30/11)
My Current Score: EQ: 779 (04/22/13) TU08: 835 (06/03/13)
DW Starting Score: EQ: 742 (03/02/12) TU98: 748 (03/02/12)
DW Current Score: EQ: 784 (03/11/13) TU08: 775 (06/03/13)