I am in the process of paying down some accounts to better my util ratio. I have 3 accounts reporting balances with util at 79%, 80%, 90%. It is better to pay down one account to 0% and work my way that way or is it otimal to spread the pay down to lower the util across all 3 account at the same time.
Thanks.
I would pay that one with 90% to below 89% as its considered maxed and costing you more Fico points. I would recommend paying off the one with highest interest first and on down the interest rate list.
Oh ok thank you. Also I have seen on the forums something called aggregate percentages. Do you know what they are. I wanna keep that saved for my records?
I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?
From Birdman7
General Scoring Primer and Version 8 Master Thread rev.5.17.20
@aerospaqe23 wrote:Oh ok thank you. Also I have seen on the forums something called aggregate percentages. Do you know what they are. I wanna keep that saved for my records?
Your aggregate UTL(utilization) is the total CC balances divided by the total credit limit.
Example if you have 3 CC and all have a $1000 CL:
CC1 bal of $700 with a credit limit of $1000 = 70% individual UTL
CC2 bal of $800 with a credit limit of $1000 = 80% individual UTL
CC3 bal of $900 with a credit limit of $1000 = 90% individual UTL
$2400 $3000
Your aggregate UTL will be $2400 divided by $3000 = 80%
