Re: prioritize paying of CC balance vs bringing 50% below
04-16-2013 11:09 AM
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
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)