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Increase CC limit or pay down loan debt!!!

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fbc200384
Valued Member

Increase CC limit or pay down loan debt!!!

Good morning FICO fam. I recently freed up 1200 dollars and need help for the best course of action and increasing my scores. Recently took a hit on my score because I purchased an engagement ring using Upgrade Visa card and showed up as another installment loan. Also have another personal loan with Republic Finance. Both loans mentioned are terrible at APR. 
I have a secured Discover It card with $300sl. I was thinking of adding more security deposit to it. I have the basic rebuilding cards utilization 1% and I practice AZEO. One baddie on TU from 17' . Where should I send my $1k to benefit my Credit scores? 
Upgrade 4K
Republic 2.5k

Discover 0/300

capital one 27/400

Self CC (secured oldest CC) 0/450

credit one 0/450

Schlumberger Employee CU 0/500
thank you , sorry for long post. 

Inq TU 2/24 EQ 6/24 EX 5/24

Current Fico 8 as of 04/2023 :



Fico 10 04/2023 [TU626] [EX621] [EQ 638]
Message 1 of 6
5 REPLIES 5
coldfusion
Community Leader
Mega Contributor

Re: Increase CC limit or pay down loan debt!!!

The prudent choice would be to put it against your debt, partly because dropping utilization on the loans leads to a positive impact on your scores, mostly because of as you describe the terrible APR.

 

(3/2024)
FICO 8 (EX) 846 (TU) 850 (EQ) 850
FICO 9 (EX) 850 (TU) 850 (EQ) 850

$1M+ club

Artist formerly known as the_old_curmudgeon who was formerly known as coldfusion
Message 2 of 6
SouthJamaica
Mega Contributor

Re: Increase CC limit or pay down loan debt!!!


@fbc200384 wrote:

Good morning FICO fam. I recently freed up 1200 dollars and need help for the best course of action and increasing my scores. Recently took a hit on my score because I purchased an engagement ring using Upgrade Visa card and showed up as another installment loan. Also have another personal loan with Republic Finance. Both loans mentioned are terrible at APR. 
I have a secured Discover It card with $300sl. I was thinking of adding more security deposit to it. I have the basic rebuilding cards utilization 1% and I practice AZEO. One baddie on TU from 17' . Where should I send my $1k to benefit my Credit scores? 
Upgrade 4K
Republic 2.5k

Discover 0/300

capital one 27/400

Self CC (secured oldest CC) 0/450

credit one 0/450

Schlumberger Employee CU 0/500
thank you , sorry for long post. 

Inq TU 2/24 EQ 6/24 EX 5/24


I don't think either of these will help your scores in the short run, but I would apply it to the Republic loan, with a view towards getting that paid off. 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 687

Message 3 of 6
FireMedic1
Community Leader
Mega Contributor

Re: Increase CC limit or pay down loan debt!!!

Not to out-do @SouthJamaica or @coldfusion . Whichever loan has the higher balance. There ya go. Lower the util. Points gained.


Message 4 of 6
SouthJamaica
Mega Contributor

Re: Increase CC limit or pay down loan debt!!!


@FireMedic1 wrote:

Not to out-do @SouthJamaica or @coldfusion . Whichever loan has the higher balance. There ya go. Lower the util. Points gained.


Actually, installment loan utilization only counts in the aggregate, not individually, and it never means any significant point gain until it gets very low (9% or lower) which would not be applicable in this case. So in the short run it doesn't matter which loan the payment is applied to. But what might pick up a few points in the mortgage scores is getting rid of an 'account with balance' when one of them gets paid to zero.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 687

Message 5 of 6
Yasselife
Valued Contributor

Re: Increase CC limit or pay down loan debt!!!

@fbc200384 Finance over credit scores. I would put it on the highest apr or try the snow ball method which has the benefit of freeing more cash to go after the bigger debt while having peace of mind in case a new expense comes up, just for emergency.

 






Message 6 of 6
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