topic Re: Fico score boost and 3 credit card balances in Understanding FICO® Scoring

Fico score boost and 3 credit card balances

ktl72455 — Mon, 10 Dec 2012 17:23:38 GMT

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?

Re: Fico score boost and 3 credit card balances

Brandnick — Mon, 10 Dec 2012 19:00:05 GMT

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

Re: Fico score boost and 3 credit card balances

ktl72455 — Mon, 10 Dec 2012 22:31:54 GMT

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?

Re: Fico score boost and 3 credit card balances

Brandnick — Mon, 10 Dec 2012 23:41:12 GMT

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%