##### Re: prioritize paying of CC balance vs bringing 50% below

04-16-2013 11:09 AM

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)**