Pay down 1 cc a lot or pay down 3 a little?

[renov8r]

I have some cash to pay down some credit cards.  I have 4 ccs, one with 15% utilization and 3 with 90%+ util.  Do I bring one of the cards with 90% utilization rate down to 30% or bring all three down less?

[UnderEstimated]

Personally, I would pay down the one with the highest interest rate first and save yourself some money.  I don't think it really matters if you only pay down one because regardless, you're utilization will still be on the high side.

[Tuscani]

Worry more about saving money, not your credit score. Pay down highest rate cards first!

[renov8r]

Thanks for the input - that narrows it down to two of the three cards.  I may be able to pay both of them down significantly.  How 'magic' is the 30% level?

[UnderEstimated]

Credit utilization is a big part of your score.  The less you use, the more responsible you look and it shows you're not depending on your credit cards as a way to get by.

[renov8r]

Yeah, I learned this the hard way.  I have ficos around 700, but a HELOC that has been maxed out starting a business.  I get zero percent card offers daily, but was turned down twice when I applied.  They added my HELOC to my CCD debt and said I had over 100k of revolving debt.  I plan on converting the HELOC to a fixed rate 2nd mortgage, which should help.  I am paying down the CCD's anyway, but I thought it would be nice to transfer a couple of balances to a zero interest rate card so the payments would all go to the balance...

[Tuscani]

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renov8r wrote:

Thanks for the input - that narrows it down to two of the three cards.  I may be able to pay both of them down significantly.  How 'magic' is the 30% level?

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You will notice a difference.

[Anonymous]

What are the APRs, balances and limits?

[renov8r]

Wells Fargo 21.50%!  $4,400 balance and limit

SDCCU       12.90%    $8,353.14 balance, $8,500 limit

Citi/Shell      16.24%    $4,942.76 balance, $5,000 limit

I plan on paying $3,100 on the Wells Fargo to get it below 30% now, and then soon I should be able to put another $3,500 on the Citi/Shell to get it below 30%.  Then I plan on converting my HELOC to a fixed 2nd mortgage. 

At that point I should have 3 cards below 30% and I can go to work on the SDCCU.  The problem is, I need to spend some additional money on home repairs - should I open another credit line to keep the overall usage under 30%?

[Anonymous]

If you can pay the CCs down under 50% util good, below 30% even better. With 700 FICOs, you should get approved for a 0% offer without a lot of trouble. Once the CCs are paid, and the CRAs report the balances, apply for AMEX Clear and Blue. More than a few folks have $10K and $20K limits on Blue, and one poster on CIC has a $50K limit on Blue.

How much is available on your HELOC? I would go ahead and tap that for the home repairs, if it's enough to cover what you expect to spend. Then refi. With your CCs holding at 30% or less, I would expect your FICOs to climb up over 720. At that point, you're at the pinacle of good mortgage rates.