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which option is the best way to increase fico....

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JcT21
Frequent Contributor

which option is the best way to increase fico....

card1.  8k limit, owe $4,400  min payment $114

card2. 6.5k limit owe $2400  min payment  $50

card3. 7k limit owe $3300  min payment $65

card4. 10k limit owe $3500  min payment $72

 

i dont have enough yet to pay the entire 13k balances.   for now im able to afford to withdrawl $5,200 from my savings to put towards that debt.  i ask you, the experts, what would be the best way to proceed to maximize fico scoring?   pay off card1 entirely?   put $1,300 to each card?    perhaps pay off card 3 and most of card 2?  

 

thanks for any advice!

 

 

 

 

fico scores - February 2024:
TU - 711 | EX - 718 | EQ - 721 |
TCL - 157K - UTIL - less than 1%
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3 REPLIES 3
PNWRambler
Frequent Contributor

Re: which option is the best way to increase fico....

UTILIZATION:
card1 55%
card2 36%
card3 47%
card4 35%

___________
Overall 43%

 

Thresholds are approx 88.9%, 68.9%, 48.9%, 28.9% and 8.9%

 

You'll get score bumps for having more cards at a 0% balance, for having less than half your cards reporting a balance, for having each card knocked down below each of the above % thresholds, and for your overall utilization being below the above thresholds. I couldn't tell you which of these is most significant but they will all cause your score to bump up.

 

I would probably pay at least one card in full and then lower the others to the next available threshold as much as possible. So maybe pay $2400 on card2, pay down card1 to 45%, pay down card4 to 25% or something like that.  Or pay card2 in full, and put all the rest on card3 to bring it under 8.9%.  

Message 2 of 4
ccquest
Established Contributor

Re: which option is the best way to increase fico....

For increasing your score, I'd say what was laid out above is a good start but I would say don't focus on your scores too much right now. Focus on the cause of the debt and on getting your finances right to avoid carrying high-interest bearing debt in the future.

In terms of just cash flow, card 1 is probably the best (avalanche). But ideally, you'd pay it all on the highest interest rate (snowball method).
as of 1/1/23
Current Cards:
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SouthJamaica
Mega Contributor

Re: which option is the best way to increase fico....


@JcT21 wrote:

card1.  8k limit, owe $4,400  min payment $114

card2. 6.5k limit owe $2400  min payment  $50

card3. 7k limit owe $3300  min payment $65

card4. 10k limit owe $3500  min payment $72

 

i dont have enough yet to pay the entire 13k balances.   for now im able to afford to withdrawl $5,200 from my savings to put towards that debt.  i ask you, the experts, what would be the best way to proceed to maximize fico scoring?   pay off card1 entirely?   put $1,300 to each card?    perhaps pay off card 3 and most of card 2?  

 

thanks for any advice!

 

 

 

 


Card 1 pay $2200

Card 2 pay $600

Card 3 pay $1400

Card 4 pay $700

 

That will get everything down to 28%

Then pay the remaining $300 to Card 2, and continue paying Card 2 down until you zero it out.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

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