Utilization what is best way to decrease?????

[traveler2005]

Thanks everyone for the great advice!!!

[silverzgirl]

In my case, the smaller balances have the highest interest and vice versa. If you are gardening, then score won't matter for now, so all of the above is correct.

[traveler2005]

I am trying to get aboit 20 points added to trans union score by october. Need new vehicle! Financing with CU. Score of 680 puts me in their "A" credit catagory with 100% financing if necessary and 2.5% interest rate.

[Anonymous]

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@traveler2005 wrote:
I am trying to get aboit 20 points added to trans union score by october. Need new vehicle! Financing with CU. Score of 680 puts me in their "A" credit catagory with 100% financing if necessary and 2.5% interest rate.

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20 points seems manageble in 3 months. Some people need 20 points in a month and that itself could be a challenge for some. I hope it all works out for you!

[takeshi74]

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@traveler2005 wrote:

would it help scores if I brought down the cards that do exceed the 90% to around 50% so that utilization on a single card is scored better, so it isn't considered maxxed out?

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Yes but I wouldn't recommend worrying about your scores until you've seriously dropped your overall utilization -- unless high utilization on specific cards is putting you at risk of limit drops (has happened to me with high utilization).  Your scores really don't matter until you're ready to start applying.  It can be a bit more satisfying to see the scores drop but I'd focus on avoiding interest first as you won't be applying for anything anyway.

[Walt_K]

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@RushXTC wrote:

someone told me to line all your accounts up from highest debt to lowest, and begin backwards... highest debt, pay minimum while you throw more than minimum at the low debts so you can pay off accounts faster, then when you're down to the high debt accounts, throw what you'd usually throw at the small ones to that, plus extra and you'll lower your UTI in no time.

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This is called the snowball method.  Because you are starting with lowest balance rather than highest APR, it will actually end up costing you more in interest than if you begin with the highest APR regardless of balance.  The reason people advocate for the snowball method is not that it is the most efficient way to pay down your debts, it's not.  

However, it can be psychologically satisfying to see those lowest balances disappear, and then to be able to throw more money per month at the higher balances.  Because it can be satisfying to push through those low balances quickly, it can encourage people to stick with their debt management goals and not get back into a bad habit of spending beyond their means.  So for some people, even though it is not the most efficient method, it works better because it encourages them to stick with the program.  That is the allure of the snowball method.

If you are not worried about being disciplined and you want to pay the least amount of interest, you prioritize by APR paying the highest APRs first.