CARD UTILIZATION....

[tradinglife]

Have about 10 cards, ranging from $1500 limit, to $8000 limit, all are close to  credit limit, im over 90% utilization. Have about $6000 to pay down on them, trying to bump up score quick to get better rate on auto loan. Is it better to completely pay off 3-4 of the small cards ($1500 limit)  or put the $6000 towards  2 large cards, getting them doen to under 50% utilization?

thanks in advance for the help!

[JoeRockhead]

Would really help get you more specific advice if you listed the cards along with their limits and balances on each.

[FicoMike0]

Like @JoeRockhead said.

I think you lose points for the highest individual account utilization. 51% of $500 hurts the same as 51% of $10,000. So, if you can get all under a threashold, like 49% or 29%, that would help.

[tradinglife]

I realize long term I should have them all under 50% however I'm looking to bump my score up quick.... I can either pay off several small ($1000-$1500 ) cards, and leave large 2 cards ($7000-$8000 limit) at 100% , or pay minimum on small cards and make large payment on the 2 7-8k limit cards,which would improve score the most?

[Thomas_Thumb]

First step is to get all cards below 89% utilization. Levels at 90% and above are generally considered "maxed out". That situation is more hurtful to score and increases risk of adverse action. After that paydown tactic then payoff one or two low limit card(s) to avoid having 100% of cards with balances.

Just to reiterate - paydown to under 89%, not to under 90%. Also, factor in the interest penalty to ensure you are below 89% after interest is tacked on.