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I have 2 cards that are reporting high balance. 1st one has 48% UTI and 2nd with 54% UTI
I can BLT one to the other and have 76% and 0%. By doing this I’ll reduce some interest rate.
The question is how many points you guys think I would lose by having one card at 76% vs. two cards at 48% and 54% UTI?
I don't know the answer, but unless you have a short term need for a higher score, I'd go for less interest.
@CYBERSAM wrote:I have 2 cards that are reporting high balance. 1st one has 48% UTI and 2nd with 54% UTI
I can BLT one to the other and have 76% and 0%. By doing this I’ll reduce some interest rate.
The question is how many points you guys think I would lose by having one card at 76% vs. two cards at 48% and 54% UTI?
I don't know if you would lose or gain, but either way I think the difference would be slight.
Based on the Scoring Primer, it looks like there are thresholds for 30, 50, 70, 90, and 100% for individual cards. So one at 48% and the other at 54% could be better than one at 76%, but I'd guess with AZEO bonus and a single card at 76% (that you quickly pay down to under 70% if possible) you might do better than splitting the two. Aggregate utilization is also important, that's got 10% in addition to the other thresholds already mentioned.
That said, if you're doing large BTs, you might have other issues that are more important to address and I would agree with @FlaDude and focus on the actual costs vs FICO score here.
@CYBERSAM wrote:I have 2 cards that are reporting high balance. 1st one has 48% UTI and 2nd with 54% UTI
I can BLT one to the other and have 76% and 0%. By doing this I’ll reduce some interest rate.
The question is how many points you guys think I would lose by having one card at 76% vs. two cards at 48% and 54% UTI?
At 76%, I believe you are considered maxed out. My understanding is that FICO algorithm may penalize more for a maxed out card.