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Do I pay off smaller balances or attack the bigger ones?

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Valued Member

Do I pay off smaller balances or attack the bigger ones?

1731/1900 onv
401/500 scc
935/1460 scm
493/1500 dis
305/2100 tar
400/3200 Firestone
360/600 cap one
101/1500 care cred
45/600 vs
109/250 f21

What should i focus on paying first what will have the biggest impact on my credit right now ? I just paid down scm to 935 from 1382 so it hasnt reported but that will bring me to a % in the 60s.
Message 1 of 14
13 REPLIES 13
Valued Contributor

Re: Do I pay off smaller balances or attack the bigger ones?

For $920, you could pay off 5 cards.  That is quite an impact.

 

I would pay 3x the min on all cards.

Then...

     you could pay lowest balances first or 

     you could pay highest APR first or

     you could pay highest utilization first.

 

I would pay utilization until they are each under 50% then pay lowest balances.

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Message 2 of 14
Community Leader
Legendary Contributor

Re: Do I pay off smaller balances or attack the bigger ones?

Are any accounts delinquent,  or are they all in good standing?

Message 3 of 14
Valued Contributor

Re: Do I pay off smaller balances or attack the bigger ones?

Agreed with Shooting-For-800, except that instead of 50%, pay them to 47%. There is a utilization threshold at 48.9%, and by paying to 47%, you should stay under it once interest is added on the next statement.

I would start by paying off the last three you listed - that’s 3 cards at zero for a hair over $250. Then go after the others.


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Message 4 of 14
Valued Member

Re: Do I pay off smaller balances or attack the bigger ones?

All are current with excellent payment history
Message 5 of 14
Community Leader
Super Contributor

Re: Do I pay off smaller balances or attack the bigger ones?


@MeN5 wrote:
1731/1900 onv
401/500 scc
935/1460 scm
493/1500 dis
305/2100 tar
400/3200 Firestone
360/600 cap one
101/1500 care cred
45/600 vs
109/250 f21

What should i focus on paying first what will have the biggest impact on my credit right now ? I just paid down scm to 935 from 1382 so it hasnt reported but that will bring me to a % in the 60s.

Pay first whatever has the highest APR. 

 

For me, finances are by far more important than playing scoring games. Chose the option that will allow you to save money. You can adjust your payments as you go

EX 753 EQ 773 TU 752
Message 6 of 14
Frequent Contributor

Re: Do I pay off smaller balances or attack the bigger ones?

Normally I would say pay off as many small ones first and then keep working your way up, but if all your accounts have perfect payment history you may want to follow Remedios suggestion of paying off the ones with the highest APRs first, to save you money. It might not be a bad idea to list your APRs for each account so we can see where you can save the most money.



Starting Score: Nov 3, 2018: EX 597 TU 599 EQ 616
Current Score: August 1, 2019: EX 674 TU 697 EQ 689
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Message 7 of 14
Frequent Contributor

Re: Do I pay off smaller balances or attack the bigger ones?


@MeN5 wrote:
1731/1900 onv. 91%
401/500 scc. 80%
935/1460 sim. 64%
493/1500 dis. 32.9%
305/2100 tar. 14.5%
400/3200 Firestone. 12.5%
360/600 cap one. 60%
101/1500 care cred. 6.7%
45/600 vs. 7.5%
109/250 f21. 43.6%

What should i focus on paying first what will have the biggest impact on my credit right now ? I just paid down scm to 935 from 1382 so it hasnt reported but that will bring me to a % in the 60s.

Regardless of APRs, I would first pay down all cards to 47% or below as previously advised. Anything above 88.9% is considered maxed out, so your first account listed needs to be addressed ASAP, as you are taking a major hit to your scores as long as you are maxed.



Starting Score: Nov 3, 2018: EX 597 TU 599 EQ 616
Current Score: August 1, 2019: EX 674 TU 697 EQ 689
Goal Score: Dec 31, 2019: EX 700 TU 700 EQ 700

Take the myFICO Fitness Challenge





Message 8 of 14
Valued Member

Re: Do I pay off smaller balances or attack the bigger ones?

I will be paying 300 towards the on card wed. And probably another 200 before my statement cuts on the 4th hopefully synch doesnt cld that card also since they already cld 2/4 of my accounts scm sl was 2400 and scc sl was 1000
Message 9 of 14
Frequent Contributor

Re: Do I pay off smaller balances or attack the bigger ones?

There are two schools of thought in the posts above:

  1. Pay down strategically to increase your score (get utilization below relevant thresholds)
  2. Pay down your highest interest debt first

I am firmly in camp #2

Finances ($) > credit score.

 

 There should be no debate. Money trumps credfit score. 


Message 10 of 14
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