Q: Credit Utilization and achieving a higher FICO score

[Anonymous]

If given only two choices, which would gain a higher FICO score?

6 credit cards at 50% utilization

5 credit cards at 10% and 1 at 90%?

[Anonymous]

What would your overall utilization be?

[Anonymous]

Right now, 97%

[nothingman02]

Waiting for OPs reply to that.

ETA: uh..er..I was too slow. But OP, if I understand your question, nope, what counts is the overall UTL and not individual. So you can distribute your balances any which way you want.

Thats what I meant though that by answering to sidewinder's question, you would have your answer.

Message Edited by nothingman02 on 04-07-2009 07:14 PM

[Anonymous]

Overall utilization would be the same with both scenarios?

[nothingman02]

I dont think your current UTL has anything to do with your question.

[haulingthescoreup]

What many of us have found is that if our overall util is low (under 9%), we can get away with one card with very high util.

Another issue that you didn't ask about is the number of cards with balances. You want to have as few cards as possible reporting balances.

It looks like you have a big task ahead of you. If you have any CC's with relatively low balances, you might want to kill them off first. Then get as many of the rest as possible under 10%, and then go after that last card.

And of course, and I'm sure you already know this, don't use your cards for anything other than gas, groceries, and any other recurring bills (cell phone, utilities, etc) that you would pay with cash if necessary, and for these purchases, pay them off immediately. No clothing purchases, no entertainment charges, no "retail therapy", etc. (Sorry for the un-asked-for advice. )

You're going to feel so good when you get out from under this debt. Good luck!

[Anonymous]

Thanks hauling, and all for good advice. hauling hit it on the head.

Basically, I have the ability to pay down have of my total CC balances. I wasn't sure which of the two actions above would give me the best score jump. It is clear what I should do based on haulings comments. Very much appreciated.

It is a BIG task ahead. Soon, I will be half way there.