87% Credit Card Usage question...

[Anonymous]

I have 1 credit card with the usage at 87% from Toys R US. It is also a closed account as their co went out of business and closed the card.

My question is this... How much would I have to pay on this card to increase my fico score? Would it increase my Fico scores any if at all?

My balance is $2,174 with a credit limit of $2,500.

[Remedios]

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@Anonymous wrote:

I have 1 credit card with the usage at 87% from Toys R US. It is also a closed account as their co went out of business and closed the card.

My question is this... How much would I have to pay on this card to increase my fico score? Would it increase my Fico scores any if at all?

My balance is $2,174 with a credit limit of $2,500.

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Ideally, below 8.9% or 28.9%

Other thresholds are at 48.9% and 68.9%

I think you're applying for mortgage, so you should aim for below 8.9% if possible, or even better at $0.00 if you have other accounts reporting balances. 

[dynamicvb]

My understanding is that if a card is closed, then Fico treats its utilization as 100% the entire time there is a balance on it. I could be wrong as I have not had this type of situation so someone please correct me if I'm wrong.

[Anonymous]

Paying down the card to 28%, will it increase my credit score, considering it is no longer maxed out?  Thank you

[Thomas_Thumb]

On closed accounts the current balance may be considered the effective card limit. In this case the card would be 100% utilized until paid to zero. So, potentially no score improvement until paid off - unless the current balance causes aggregate utilization to be above the lowest threshold (8.9%). If aggregate is above 8.9% then paying down the card to get aggregate below 8.9% should help score even if the card still has a balance.

As mentioned, complete pay off will also lower # accounts with balances and that can help boost score as well.

[SouthJamaica]

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@Anonymous wrote:

I have 1 credit card with the usage at 87% from Toys R US. It is also a closed account as their co went out of business and closed the card.

My question is this... How much would I have to pay on this card to increase my fico score? Would it increase my Fico scores any if at all?

My balance is $2,174 with a credit limit of $2,500.

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It depends on how it's being reported. There are 2 likely scenarios.

1. In one scenario it's being reported as having a limit of $2500. In that scenario you should pay it down to $700 or less to get some score boost.

2. In the other scenario, as @Thomas_Thumb points out, it is being reported as 100% maxed out; in that scenario you need to pay it down to zero ASAP.

[Anonymous]

I thought that the account I had at 87% was closed. However, in fact it is open. If I pay this card off how much would this increase my credit scrore? 5-10 points?

Or if I pay if down to 25% what would it do? If anything..

I'm trying to make a decision on if I should put the cash toward this card or another one that is at 50%. I need my score to go up. If it's not going to make a big difference in points then I'll just make a normal payment. It is the only card that I have that is maxed out.

Any help would be so much appreciated!

This is with Equifax Transunion and Experian

Balance Credit Limit

Experian - Transunion and Equifax show owing $2,175 and limit is $2,500.  total is 87%

[Revelate]

Pay the highest percentage utilization assuming you can’t pay any of the others off if we are just talking scoring.

That said financially it is always better to pay the highest APR.

We have seen a bunch of different datapoints on individual tradeline utilization so you may or may not get much in the way of points, but unless you are on a 0% promo generally paying off a credit card outside of it’s grace period is one of the best financial decisions you can make.

[Anonymous]

Bring one of the accounts to $0 and whenever you have funds pay off the rest to bring you UTI to under 9%.
Have patience and overtime it will pay off.

[Anonymous]

Thank you for the comment. I'm trying to use cash funds for a down payment. I would put a large sum down if it would increase the fico score. If not then I would wait it out another month.