What should I pay Next?

[Anonymous]

Been slowly rebuilding my credit over the years. Been doing really well I think. I have 4 credit cards, 2 are completely paid off. One has a balance of $1880 ($4000 limit) and the other $5700 ($8000 limit). With my tax return and stimulus Ive gotten a nice savings going and was wondering if I should pay the lower one off or pay a larger portion towards both? Ive never had a late payment and all in good standings.

[Anonymous]

How much can you pay in total? There are usage percentages that come into play. If you tell us what you can spend, we can come up with a good plan to help you maximize your scoring in return for the paydown.

[FeeBear]

Hey Bowlergt,

    To max your score, you should first try and get both account under 30% utilization. You need to bring 4K CC to under 1,200 and the 8k under 2,400. That will boost you score.

Fee

[Anonymous]

Unfortunately I dont have enough to do that, I have about $2000 to apply

[Anonymous]

Paying $50 on the balance of $1880 and the other $1950 against the $5700 balance gets both of those down under 47%, which would drop your aggregate and individual usage percentages down through the 49% threshold, with enough headroom that you'll stay under that breakpoint after interest is added. That should be good for 10-15 points I would imagine.

[FeeBear]

Hey Bowlergt,

         May I ask which CC has the highest APR%?

Fee

[Anonymous]

I should have asked, what are the limits on the two paid-off cards?

[Anonymous]

On the two paid off ones limits are $2500 and $2150. I finally reached $9,000 in my savings which I was proud of lol but if it helps I can pay a little more on the cards.

No fees on either. Higher balance is 22.9% the lower is 21.9%

[FeeBear]

I honestly follow the Devil's idea. $50 to the lower CC and $1950 to the higher limit. You will save on interest and still boost your score.

Fee