Question regarding which CC to pay first

[Anonymous]

Hello all, first time poster here. Here is my situation. I've two credit cards, one through BoA with a $8,000 limit and one through CapitalOne with a $500 limit.

My BoA CC has 19% APR. Out of $8,000, I've used 7,300 as of today.

My CapitalOne CC has 0% APR till December of this year. Out of $500, I've used $475 as of today.

Both of my cards have very high credit utilization as you can see. My credit score was 602 last time I checked, and I want to improve that. My question is this: To improve my credit score...

...should I pay off my BoA CC first and foremost, while continue to make minimum payments to my CapitalOne CC?

or

...should I pay off my CapitalOne CC at once, and then use this CC exclusively, trying to keep it under 30% utilization through the month, while continue to make as many payments to my BoA CC as possible?

If I stay within budget I could pay off both if my CCs in about 8 months. What I want to know is which strategy will improve my credit score more rapidly and impactfuly.

Thanks!

[xaximus]

I could suggest knocking the Cap1 CC off first before tackling the BoA one. Zero the cap1 and then keep util on it under 28% and PIF every month. Usually with Cap1 cards, you're bucketed so growing the CL on it might take some time.

For the BoA card - I would make the payment as many times and as much as possible, if you can cut spending and divert more cash towards it, I would recommend it.

Find out when the statement cuts and due date, also when the balance is reported to CRA's. Make payments before that date so each month, the new updated reduced balance is reported. After you hit each threshold for util (8.9%, 28.9%, 48.9%, 68.9%, 88.9%), you'll see an increase in your score. This should get you back into the high 6's hopefully.

What I would do once you have both cards down to low Util's is to possibly open another card with a decent CL (Discover or Chase depending on score). Give it some time before apping for another card, once you pay down your balances, I'd say 6 months before apping atleast.

[Jnbmom]

Your utilization is very high which is killing your scores. I would pay off the CO card and then not use it. You can then starting chipping away at the BOA. Your scores will not go up quickly until you get your BOA balance down drastically. 

[Anonymous]

Both cards are showing as maxed out, ie 90%+. It seems to me the 1st priority is getting them both reporting below that threshold asap. 

In the scenario you describe $30.50 would bring your Cap1 to $444.50 which is 88.9% Util (89 point anything but zero rounds up to 90% which is why 88.9 or lower is advisable.) Because this is a zero interest account you should be okay sitting there for a minute while you work on the other card. Once the other is < 68.9% you might want to throw $100 at Cap 1 to make it also <68.9%. And so on. 

Spending too much time "maxed out" might result in AA, something you surely wish to avoid. Good luck.