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Pay off credit cards to avoid balance chasing

Indian63
Established Member

Pay off credit cards to avoid balance chasing

Hello-

 

Currently have 4 credit cards with approximately 90% utilization and around $10,000.  Recently returned to work and am looking to pay them down.  The problem is if they are paid off all at one time they will most probably drop my limits.  Just wondering if there is a strategy to keep my limits while paying them down?  Right now I am thinking about paying them all halfway down, wait a month, then get them below 10%.  Does this seem to be a good way to go?  Thank you.

Message 1 of 4
3 REPLIES 3
CreditSweeper
Established Contributor

Re: Pay off credit cards to avoid balance chasing

If they want to balance chase you, they will do it no matter how you pay it down.  It's not the pay down that triggers the balance chasing, it's the fact that there was already sustained high utilization. 

Personal Credit -
AMEX: Platinum, Gold, Green, Blue Cash Preferred
PNC: Cash Rewards, Points
BOA: Cash Rewards
NFCU: Flagship Rewards, Cash Rewards, CLOC
PSECU: Founders
BB&T: Spectrum Cash Rewards
CapOne: Quicksilver
Discover: IT Chrome, IT
Synchrony: PayPal 2%, PayPal Credit
Barclays: Uber
PenFed: Power Cash Rewards, Platinum Rewards
Alliant: Visa Signature
Goldman Sachs: Apple Card
BBVA: Clear Points
FNBO: Rewards
Store Cards: Target, Macy’s



Business Credit-
AMEX: Delta Gold, Amazon Prime, Simply Cash Plus
PNC: Visa Business
Synchrony: Lowes
Message 2 of 4
Remedios
Moderator

Re: Pay off credit cards to avoid balance chasing


@Indian63 wrote:

Hello-

 

Currently have 4 credit cards with approximately 90% utilization and around $10,000.  Recently returned to work and am looking to pay them down.  The problem is if they are paid off all at one time they will most probably drop my limits.  Just wondering if there is a strategy to keep my limits while paying them down?  Right now I am thinking about paying them all halfway down, wait a month, then get them below 10%.  Does this seem to be a good way to go?  Thank you.


You've mentioned in the past having Indigo, Credit One, and Cap One.

You're not going to get balances chased by Indigo and Credit One, Cap One can go either way, but that shouldn't stop you from paying them down. 

You're probably bleeding money in fees and interest, so just do what you can to stop money loss. 

When someone asks you *What's wrong*, and you're not sure if you want to start listing it in alphabetical or in order of importance.
Message 3 of 4
BrutalBodyShots
Super Contributor

Re: Pay off credit cards to avoid balance chasing


@Indian63 wrote:

The problem is if they are paid off all at one time they will most probably drop my limits.  Just wondering if there is a strategy to keep my limits while paying them down? 


What makes you think they will probably drop your limits?  Outside of the high utilization accounts, what does the rest of your profile look like?  Is it clean or dirty?  Aged or young?  Thick or thin?  Utilization in and of itself doesn't often trigger balance-chasing unless there are other profile-weakening factors at play.

Message 4 of 4
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