Utilization in correlation to CS

[Anonymous]

Just wondering what kind of effect I would experience in my credit score if I pay down a big chunk of my credit cards. Right now I have one card with 500 limit with a $388 balance and a second card that has 1130 limit that has a 1069 balance on it. Not good I know. But for your information my cc with a limit of 1130 was 1800 just 2 months ago and I paid a big chunk of that and then cc company lowered my limit to 1130. 

Anyways I was planning on paying my $500 card down to $100 and my $1130 card down to $500. That would increase my total available balance from $176 to $1030. 

What kind of credit score increase would i be looking at typically?

[llecs]

Basically you are going from 89.4% to 36.8% per util. Assuming these are your only two CCs, and you don't have any other CCs opened (w/ or without a balance) or closed (w/ a balance), then I'd guess 20 or less per a gain in FICO score. If you paid one to $0 and got the other to report a balance of under 9% of the CL, then I'd guess 60+.

[Anonymous]

Hi justwantahome,

---

justwantahome wrote:

Anyways I was planning on paying my $500 card down to $100 and my $1130 card down to $500. That would increase my total available balance from $176 to $1030. 

What kind of credit score increase would i be looking at typically?

---

Remember that FICO does not score you on total available credit - it scores you on utilization percentages.  In other words, it will not look at your previous $176 or your new $1030, but will look at the utilization percentages that llecs mentioned in his post.

You might have fun playing around with the FICO estimator - putting in the numbers you currently have; and then rerun it with the new numbers you will have.  It may give you a sense of what to expect. 

[Anonymous]

Actually I keep forgetting this but I do have Express credit card that is open since 2000, I've never used it and has 0 balance, 0 limit. I do have an auto loan too for the past 9 months and have made all payments and theres about $9400 left on it. 

I hear what you are saying about the percentage but am i better off lowering the balance between both right now or definitely paying off one card and pay whatever else i can this month towards the other.

I guess what Im saying should i just pay off my lower cc right now but pay less on my higher cc or just lower my low cc to under 25% and put more towards lowering my higher cc?

[llecs]

For max points with what you have, I'd say pay the lowest first and throw the rest at the higher balance.

[Anonymous]

Ok so I followed your advice so far and paid my lower cc down to zero. That leaves me with my higher CC with a current balance of 1070. I am going to pay $700 to that leaving me with a new balance of $370. So my utilization will go from 89.4% to 22.6%.

Hopefully I will see a good chunk of my CS going up. I am hoping 30+ points!

[Anonymous]

---

@Anonymous wrote:

Ok so I followed your advice so far and paid my lower cc down to zero. That leaves me with my higher CC with a current balance of 1070. I am going to pay $700 to that leaving me with a new balance of $370. So my utilization will go from 89.4% to 22.6%.

Hopefully I will see a good chunk of my CS going up. I am hoping 30+ points!

---

Nice work!

[larinoriani]

---

@Anonymous wrote:

Ok so I followed your advice so far and paid my lower cc down to zero. That leaves me with my higher CC with a current balance of 1070. I am going to pay $700 to that leaving me with a new balance of $370. So my utilization will go from 89.4% to 22.6%.

Hopefully I will see a good chunk of my CS going up. I am hoping 30+ points!

---

Please come back and let us know!