Utilization

[Niki9]

I have $6000 to pay on my $12000 of credit card debt.

The question is should I pay on my highest intrest rate (as Suze Orman says)

or should I spread across the cards so that they all are at 50% utilization or better.

I looking for the fastest way to 720 fico.

Thanks

[fused]

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Niki9 wrote:

I have $6000 to pay on my $12000 of credit card debt.

The question is should I pay on my highest intrest rate (as Suze Orman says)

or should I spread across the cards so that they all are at 50% utilization or better.

I looking for the fastest way to 720 fico.

Thanks

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Can you list each CC's credit limits, current balances and APRs?

[Niki9]

Wamu    $3970  @24%    $4000 limit

Orchard   $1250   @29%  $1350

Wamu      $2875   @17%  $3000

Cap1       $3400     @17      $3500

Best Buy $690     @0%       $1000

I also have a $1000 and a $300 card w/no balance.

As you can tell my utilization is high.  I have the opportunity to put $6000 on it but did not know if I should continure to pay the highest first or split the balance.  

Just wanted to know if it made a difference either way to my fico.

[Anonymous]

I would pay off the highest interest one first. As I understand it, the utilization is based on total balances to credit limit, so it doesn't help any if you split the $6K between all cards. You will end up with the same amount of util. So pay the highest interest ones to save on interest.

-dp

[Anonymous]

as i understand it it goes total utilization, then looks at account utilization (i.e. 30% total utilization, but it's 100% on one account can still cost 100 fico points).

at least that's how fused explained my scenario w/maxing out a line of credit to consolidate cc's into one payment. i ended up getting an installment loan from the cu to nock the loc to about 43% utilization.

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onehotcuban wrote:
I would pay off the highest interest one first. As I understand it, the utilization is based on total balances to credit limit, so it doesn't help any if you split the $6K between all cards. You will end up with the same amount of util. So pay the highest interest ones to save on interest.

-dp

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[fused]

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Niki9 wrote:

Wamu    $3970  @24%    $4000 limit

Orchard   $1250   @29%  $1350

Wamu      $2875   @17%  $3000

Cap1       $3400     @17      $3500

Best Buy $690     @0%       $1000

I also have a $1000 and a $300 card w/no balance.

As you can tell my utilization is high.  I have the opportunity to put $6000 on it but did not know if I should continure to pay the highest first or split the balance.  

Just wanted to know if it made a difference either way to my fico.

---

You have three maxed-out cards (95% util is considered maxed-out). I would pay down each CC so all of them report <50% util. Do not charge anything on the two CCs with zero balances. The trick here is to have the fewest CCs reporting util above 50%. Once all these new balances report you should see a nice jump in your scores.

Also it's important to remember that FICO has two types of util% calculations: ones that looks at the total utilization% on each CC and the others looks at overall or cumulative utilization% on all of your CCs.

Message Edited by fused on 09-30-2007 02:06 PM

[Niki9]

OK - so here are my stats:

Wamu    $3970  @24%    $4000 limit - paying this one off next week

Orchard   $0 @29%  $1350     Was 1250 - paid this one off last week

Wamu      $2875   @17%  $3000

Cap1       $3400     @17      $3500

Best Buy $690     @0%       $1000

Walmart $55        

[Niki9]

I messed that last post up....

OK - so here are my stats:

Wamu    $3970  @24%    $4000 limit - paying this one off next week

Orchard   $0 @29%  $1350     Was 1250 - paid this one off last week

Wamu      $2800   @17%  $3000

Cap1       $3400     @17      $3500

Best Buy $690     @0%       $1000

Walmart $55        @22%       $150   PIF

Valero    $115       @20%        $300  PIF

APPLIED Bank $0 @ god awful%  - will never use again ( but they keep calling to let me know that I qualify for CLI - with a nice $100 cash advance fee)

True credit says my scores are

TU  648

EX  632

EQ  668

We will see what they say next month

[Niki9]

new stats:

Wamu    $120  @24%    $4000 limit

Orchard   $53 @29%  $1350    

Wamu      $147   @17%  $3000

Cap1       $110    @17      $3500

Best Buy $676    @0%       $1000

Walmart $65       @22%       $150   PIF

Valero    $140      @20%        $300  PIF

SeaMiles $6500   @0%         $7500

Hooters    $300     @14%        $500

Target      $250       @29           $300    (put this balance on today - xmas shopping on black friday)

QVC         $100        @29           $700 

Nordies     $0            @unk         $1000

APPLIED Bank  closed this one ( my oldest line of credit) because they refused to lower the APR more the 2 points and they refused to waive the annual fee .... after all of these years they said they would rather me close the account then to waive the annual fee. (after all of the money they made off of me!!!!)

TRUE CREDIT scores:

TU   687

EX   669

EQ   708  (trying to break into the 700 club)!!!

Anybody have any suggestions for me??  I am trying to pay these cards off and raise the FICO at the same time.

[Anonymous]

Attack the SeaMiles, obviously. You're doing pretty well. Although I wouldn't trust True Credit, I would venture to say you're on the right track!