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%.
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).
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
@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.
