topic Re: Best Credit Boosting Payment Strategy to increase credit line? in Credit Cards

Best Credit Boosting Payment Strategy to increase credit line?

Mshellt — Fri, 21 Dec 2018 11:37:13 GMT

So I saved up $2000.00 to furnish a living room and dining room but I paid for the furniture using a discover card. It has zero interest for a year. I recall there being a sort of magical formula for paying off credit card debt that causes credit to instantly jump or at the very least causes the credit card companies to increase your line of credit. I think it might involve paying half of it in the first month and then parking off the rest within did months? I can't remember! Advice? I know paying it off completely paradoxically causes credit scores to drop LOL so I don't want to do that.

Re: Best Credit Boosting Payment Strategy to increase credit line?

Anonymous — Fri, 21 Dec 2018 12:24:31 GMT

Im no expert on this. BUt I read from wonderful members that you need to pay the uutilization down to <67% asap, then 50%, so on and so forth.

Re: Best Credit Boosting Payment Strategy to increase credit line?

Remedios — Fri, 21 Dec 2018 13:12:22 GMT

@Mshellt wrote:
So I saved up $2000.00 to furnish a living room and dining room but I paid for the furniture using a discover card. It has zero interest for a year. I recall there being a sort of magical formula for paying off credit card debt that causes credit to instantly jump or at the very least causes the credit card companies to increase your line of credit. I think it might involve paying half of it in the first month and then parking off the rest within did months? I can't remember! Advice? I know paying it off completely paradoxically causes credit scores to drop LOL so I don't want to do that.

What's the credit limit on your Discover card and how much did you charge?

In general, reporting only a small balance is good for scoring purposes, however if you are in 0% intro period, you should take advantage of it. As the balance goes down, score will go up.

Re: Best Credit Boosting Payment Strategy to increase credit line?

xaximus — Fri, 21 Dec 2018 14:05:49 GMT

There are several thresholds in utilization that directly impact your score. They are as follows:
8.9%, 28.9%, 48.9%, 68.9% and 88.9%.
Each threshold you hit will cause a drop in your CS. Depending on your limit, I would plan to pay down each part enough to bring you under the threshold. If you post your credit limit and utilization, I can help with the math.

Re: Best Credit Boosting Payment Strategy to increase credit line?

Mshellt — Fri, 21 Dec 2018 16:03:12 GMT

Current credit limit is 14,000... I'm only using 2,000 of it. Do you suppose it matters in what increments it is paid off?

Re: Best Credit Boosting Payment Strategy to increase credit line?

Remedios — Fri, 21 Dec 2018 16:10:18 GMT

@Mshellt wrote:
Current credit limit is 14,000... I'm only using 2,000 of it. Do you suppose it matters in what increments it is paid off?

To Discover, not really, as long as it gets paid.

I would divide it by 6-12 months, depending on how much time you have left on 0% promo and go from there. That way you keep some of your savings for a longer period of time.