Best way to boost FICO with current utilization ratios?

[njames33]

Hello, I'm looking for the best way to boost my FICO score with $5,000 available and the following balances and ratios below. Looking to apply for a personal loan & possibly 0% balance transfer card to pay down some of this CC debt. Debt is due to legal fee's from a lawsuit I will be getting a settlement on so please kindly keep advice focused on boosting my score for best chances to get approved. Thanks in advance!

Limit > Balance > %
Credit Cards
$35,500 > $34,500 > 98% (Chase)
$25,000 > $19,277 > 77% (NFCU)
$ 5,000 > $ 1,445 > 28% (Chase)
$ 3,000 > $ 867 > 28% (Chase)
$ 1,000 > $ 0 > 0% (Wells)
Auth User CC's
$17,800 > $ 0 > 0% (NFCU)
$15,800 > $ 0 > 0% (Chase)
$ 9,000 > $ 0 > 0% (Chase)
$ 4,100 > $ 150 > 3% (Wells)

Total Non-Auth CC limits: $69,500 CC Usage: $56,089 / 80% utilization

Total Overal CC limits: $116,200 Total CC Usage: $56,239 /48% of Total utilization

Loans:
Checking LOC
$15,000 > $ 8,500 > 56% (NFCU)
Auto
$20,000 (NFCU)

Perfect credit & payment history minus the utilization. 

PS. Initial plan was to pay the $35k Chase down to 89% but I'm a tad concerned they may drop my limit based on what I've been reading. Made a payment amount mistake that took 15 days to clear up, although not reported to my credit I'm not sure about internally. 

[Thomas_Thumb]

The longer Chase stays high, the more likely for that it will be balance chased. Start paydown now.

I'd suggest:

1) Apply $3600 toward the Chase card (get below 89% after interest applied)

2) Apply $1200 toward the NFCU card (want to get this one below 69%, you will still have a way to go)

3) Pay $125 toward the $5000 Chase card (at least 1.5x min payment)

4) Pay $75 toward the $3000 Chase card (at least 1.5x min payment)

Not sure what your required minimum payments are so the last two amounts are guesses.

[njames33]

Thanks for the reply Thomas, my concern with the Chase card is it's been maxed for about 6 months hence why I'm a little concerned with that one being balanced chased if I pay it down too much. On the Navy, it would take $2,027 to get the balance down to 69% or $17,250. For FICO scoring purposes can you explain how the 1.5x min payment FICO boost works?  Again appreciate the help!

[Thomas_Thumb]

It looks better upon manual review to make more than minimum payments. Nothing special about 1.5x. I'd generally say 2x but, you really should allocate the majority of funds toward your highly utilized CCs.

Regarding the nearly maxed out card, the longer you wait, the worse it will be. Make a large payment now. You are speculating on the balance chasing - why continue to wait and make it a self fulfilling prophecy? Give paydown a try. If they do balance chase, then adjust future strategy accordingly. I'd allocate enough funds toward getting below 89% and not worry so much about getting below 69% on the 2nd card.

A $1200 payment on the 2nd card should be sufficient to mitigate risk of balance chasing on that card. Take that card to under 69% in a future payment cycle.

[SouthJamaica]

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@njames33 wrote:

Hello, I'm looking for the best way to boost my FICO score with $5,000 available and the following balances and ratios below. Looking to apply for a personal loan & possibly 0% balance transfer card to pay down some of this CC debt. Debt is due to legal fee's from a lawsuit I will be getting a settlement on so please kindly keep advice focused on boosting my score for best chances to get approved. Thanks in advance!

Limit > Balance > %
Credit Cards
$35,500 > $34,500 > 98% (Chase)
$25,000 > $19,277 > 77% (NFCU)
$ 5,000 > $ 1,445 > 28% (Chase)
$ 3,000 > $ 867 > 28% (Chase)
$ 1,000 > $ 0 > 0% (Wells)
Auth User CC's
$17,800 > $ 0 > 0% (NFCU)
$15,800 > $ 0 > 0% (Chase)
$ 9,000 > $ 0 > 0% (Chase)
$ 4,100 > $ 150 > 3% (Wells)

Total Non-Auth CC limits: $69,500 CC Usage: $56,089 / 80% utilization

Total Overal CC limits: $116,200 Total CC Usage: $56,239 /48% of Total utilization

Loans:
Checking LOC
$15,000 > $ 8,500 > 56% (NFCU)
Auto
$20,000 (NFCU)

Perfect credit & payment history minus the utilization. 

PS. Initial plan was to pay the $35k Chase down to 89% but I'm a tad concerned they may drop my limit based on what I've been reading. Made a payment amount mistake that took 15 days to clear up, although not reported to my credit I'm not sure about internally. 

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You should put it all towards the maxed out Chase card.