Some might suggest practicing AZE0 for the optimal effects to your scores. It's also OK to have a small balance on each card as long as its low, 1% to 8.9%.
Once you go above 50% usage your score starts taking more significant hits. Any individual card utilization of 90%+ is considered maxed out and there will be heavy hit to your scores.
Get your balances paid down to under 9% on each card and you should see a nice improvement to your scores.
This ^^^^^^^^ FICO also likes less than half your cards reporting and never have none report.
@Lmedrano wrote:Hello,
Over the past years ive been repairing my credit report. I'm trying to get the highest score possible by paying all my credit cards before the statement closing date. What percentage should I be leaving in my CC? Do I pay them all and have a zero balance for the most optimal score or leave a minimal balance? I currently have the funds available to eliminate the debt but don't want my score to drop. My current FICO 8 score is EQ 625, TU 666, EX 646.
CC 1 -CL of $700 current balance $586
CC2 - CL of $300 current balance $0
CC3 - CL of $1000 current balance $211
CC4 - CL of $750 current balance of $366
CC5 - CL of $2000 current balance $2352
Combined credit utilization if my math is righ 74%. Should I bring all my cards to at least 9% balance or pay them all off.
Thank you for your help and advice in advance.
If you want to absolutely optimize it, you should have 4 of the cards reporting a zero balance and one of the cards reporting a small balance.
Hey @Lmedrano, welcome to the forums.
@Thomas_Thumbmade great recommendations. I'll double down on not allowing more than two of your cards to report a balance. For me, when I allow three cards to report balances, EQ tends to drop me down a few points. I have eight cards and an AU. My total balances $2, $55 and $129 and I lost two points when that third card reported a balance. My AU reports $5. EX doesn't care if I have 1 - 3 cards reporting low balances and TU seems to prefer that I have three versus two cards report.
I know most folks tout AZEO on this forum. I used to be one of them, when the main models were what we now call mortgage scores. But, with F8, AZEO is really not a thing that will cause a score bump or loss, given you have five cards.
You should see a nice bump when you get three cards to $0 and allow those other two to report small balances. CC5 is kicking your score's butt big time!
Starting Score: 469Current Score: 819
Goal Score: 850
Highest Scores: EQ 850 EX 849 TU 850
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@Lmedrano wrote:Update: Thank you all for your help and advice. I was able to pay off all the credit cards to a zero balance and leave one card at 1%. Along with that I paid off one CC charged off account to a zero balance. The results are overwhelming, still have progress but it got the job done and now I closed on our home In 2 weeks! Thank you all for the help
FICO 8
EQ 673
TU 706
EX 701
Congratulations 