cancel
Showing results for 
Search instead for 
Did you mean: 

pay down higher balance or smaller to report zeros?

Highlighted
Frequent Contributor

pay down higher balance or smaller to report zeros?

Hi, question on best method to pay off my balances.

 

Is it best to pay off the smaller balances first, or to pay down a bigger balance that has a bigger limit? This is talking BEFORE the actual due date. Just because I want to make payments and bring balances down in general.

 

For example, a few CL's of $250 each with small balances of $30 to $60

 

Or a larger balance of around $320 on a $500 CL?

 

Not worried about interest, just asking in general, for reporting purposes and to make sure I do the right thing. Thanks!

Message 1 of 6
5 REPLIES 5
Highlighted
Frequent Contributor

Re: pay down higher balance or smaller to report zeros?

Ideally only one of your card should report balance. Try to keep the util below 30%.


PNC Secured 2000 (Dec12), Chase Amazon 2000 (Apr13), CapOne Newcomer 2500 (May13), Citi dividend 3000 (May13), Discover IT 1000 (Jul13), Amex BCP 6000 (Jul13), Chase Southwest 10000 (Jul13), Chase Marriott 12000 (Oct 13), BofA Travel Rewards 5000 (Dec13)

- In garden till Dec 2014
Message 2 of 6
Highlighted
Super Contributor

Re: pay down higher balance or smaller to report zeros?


@new_earth wrote:

Hi, question on best method to pay off my balances.

 

Is it best to pay off the smaller balances first, or to pay down a bigger balance that has a bigger limit? This is talking BEFORE the actual due date. Just because I want to make payments and bring balances down in general.

 

For example, a few CL's of $250 each with small balances of $30 to $60

 

Or a larger balance of around $320 on a $500 CL?

 

Not worried about interest, just asking in general, for reporting purposes and to make sure I do the right thing. Thanks!


Pay down the higher UTL card first for scoring purposes as it looks close to max'ed out and has a negative impact

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 3 of 6
Highlighted
Valued Contributor

Re: pay down higher balance or smaller to report zeros?

+1 higher balances w close to limits first Smiley Happy


GARDEN GOAL: MARCH 2014
LAST APP: 08/20/2013
---=[NORTHBOUND]=---
Message 4 of 6
Highlighted
Frequent Contributor

Re: pay down higher balance or smaller to report zeros?

ok, thank you!

Message 5 of 6
Highlighted
Frequent Contributor

Re: pay down higher balance or smaller to report zeros?

I figured out a way to get the store cards down to zero and I believe my entire balance on Credit One also down to zero before all statements cut. So the only thing left with a balance will be DCU, which will be less than 50% in itself but across all my CC's util will still be very low. I am basically in the garden anyway other than an app for Walmart next month so I don't think I'm gonna need super max score. I just don't want to mess up what I have.

 

I was sitting here thinking about it all and couldn't stand the thought of  keeping up with that many cards with balances. I am stil new at this and don't want to get in over my head. I was starting to get anxiety. Wow, I feel so much better now! Everything paid in full except 2 CC's, one which will be paid before statement cuts.

Message 6 of 6
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.