Anonymous Posted June 19, 2003 Report Share Posted June 19, 2003 Is your credit score better/worse/not affected if you spread your revolving debt over all your credit cards (I have 5) or if you pay them off one at a time? Example: I have five credit cards that are almost maxed out. I can finally pay off over 50% of each of them which should increase my score considerably. Would it be better for me to pay two of them all of the way off and leave a high balance on two or pay them all down equally?Thank you,Corky Link to comment Share on other sites More sharing options...
Anonymous Posted June 19, 2003 Author Report Share Posted June 19, 2003 You have the right idea; pay all of them down at the same time to get the balance below the 50% mark - lower if you can, prime Utilization would be below 30% per account.Utilization affects 30% of the credit scoring so if you divide the balance by the credit limit you will see what the utilization is per account.Example: $5,000 credit limit card w/ $4,000 balance = 80% Utilization.Don't close accounts behind you, this will just shrink the available credit limit to balance ratios, it is better to have a several accounts with balances than it is to have a few maxed out. Link to comment Share on other sites More sharing options...
crofttk Posted June 19, 2003 Report Share Posted June 19, 2003 I'm not CERTAIN, but I believe FICO scoring will look at both overall % utilization and any MAXIMUM account utilization. I believe it is best to try to even them out. How many points it's worth ? Don't know.Well, I see I crossed kb's post "in the mail". Link to comment Share on other sites More sharing options...
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