Anyone know which is better to do...

[Anonymous]

I need to pay some credit cards down.  My question is Should I pay:

3 CC down

or

7 or 8 down

I know not to close them, but I just don't know which is better to do.  Also, Do I pay them down to 0 or should I keep $100or so  on them ?  How long does it take to reflect on Credit Reports?

Thanks

[Anonymous]

How many do you have?

You want less than half reporting a balance and you want individual util and overall util below 9% for max points.

As for how long it takes, depends on when your CCC report to the CRA. Usually within 30 days they are all updated, sometimes a little longer.

[Anonymous]

I have about 13.  I don't understand the 9% thing. 

[Anonymous]

Divide balance by CL and you get utilization(how much of your credit you are using).

To get your overall utilization, add up all your balances and add up your CL. Divide balances by CL....you get your overall utilization.

You want between 1-9% utilization.

[Anonymous]

Ok I get that.  However, that would be a long term for me to get unr 9%.  In the time being what should I do to get a better score.

So, If I have 4 cc's .3 with balances 0f 400 with a CL of 500 and 1 with balance of 1200 with a CL 1500.  Should I pay the 3 off or the 1, or does it not make a difference.

[marty56]

These days, with a lot of AA going on, you want to PIF your best card first.

[Anonymous]

Denied,

                Each of your cards is currently at 80 percent utilization and that is a serious red flag. And carrying a balance on ALL of your cards sends up another red flag that you're overextended, so you definitely want to avoid falling into that trap. First rule of ditch digging:: when you're in a really big hole, stop digging.

 I agree you should make it a priority to pay down your best card---with the 1500 dollar credit limit....On the theory that this card has shown you more trust and confidence than the other 3 with their chump change credit limits.

 The other cards have such low limits you could retire them rather quickly with relatively low monthly payments.

But I imagine the interest rate is pretty high on these cards so, if possible, make more than the minimum payment to save a few bucks.

In any event, this is no time for a late or missed payment so if you have to, try to increase your income short term to cover these debts. In the grand scheme of things, these are modest bills to pay but they can seem like an enormous weight on your shoulders in an economy like this and it's best to get a handle on them sooner rather than later.

Best of luck.

Cato

Message Edited by cato on 04-02-2009 04:00 AM

[Anonymous]

---

denied-again wrote:

Ok I get that.  However, that would be a long term for me to get unr 9%.  In the time being what should I do to get a better score.

So, If I have 4 cc's .3 with balances 0f 400 with a CL of 500 and 1 with balance of 1200 with a CL 1500.  Should I pay the 3 off or the 1, or does it not make a difference.

---

FICO wise, I think you'd be better paying down the 3.

Financially and in the eyes of the creditor, the answer could be the opposite.

[medicgrrl]

But you said you have 13 cards...do they all have balances?  What is your total credit card debt vs your total credit limits?  Maybe you can pay some down and spread the balances around a bit while you pay them off so that each card is around 10%?

[Anonymous]

I actually have 16.  I have 13 with balances.  I am currently using 65% of my credit with around $16,000 in balances.  I plan on paying $8000 towards my balances,  My BK comes off my record in May so I would like to get my credit usage under 40% with no BK.  My scores are 629-653-689, I hope to get them in the 700's by july.

I plan on taking the $$ I save on the cards I do payoff and double up on my other CC's to be at 10% credit usage by new year.

When creditors say "excessive usage of credit" are they talking as a whole or individual cards are to maxxed.