Utilization Question....!?

[Try4Gr8Credit]

Let's just say that you are at your limit with a few cards. Also, lets say you are about to come into some money to pay them off.

So do you pay them off totally?

Pay off half of each or down to 30%?

Pay off half one month, the next half the next month until they are down to zero?

Which option boosts your score the most?

[LNY]

Paying them off all at once will give you the fastest and most dramatic boost.

[isislc]

Ok, I have read and noticed this myself the way I've been taking care of my own cards. Although when you pay them off completely you do get Fico points, you get more Fico points by leaving a small balance under 30% and making payments on that every month. It isn't necessarily a matter of being able to pay off the cards but more of showing that you have the ability to be consistent in making payments and doing that around the same time each month. With my own cards, I have noticed a difference between an 8 pt jump and 15 point jump for each card. With just the reporting of 2 cards and making payments like I described, I received a 39 pt in just my EQ alone. I'm waiting on my other cards to report before I buy my other 2 Ficos.

[LNY]

How much of a boost each person will receive depends on what else happens on their reports. There's no set number of points gained or lost for each activity.

[isislc]

How much of a boost each person will receive depends on what else happens on their reports. There's no set number of points gained or lost for each activity.

That is correct but I do see a higher point boost when you keep low balances as opposed to paying a card off. I try to keep anywhere from $30-$40 on my cards and then pay 1.5 - 2 times the minimum payment. Then again I pay on my cards based on when they report rather than when they are due. I have found that almost all of my cards report 1-2 weeks BEFORE the due date. This then would completely blow away the idea of keeping utilization down if it reports before your payment is received. It's kind of a juggling act to maximize points but well worth it in the end I think.

[LNY]

I said paying them all off would give "the fastest and most dramatic boost."

I paid off my cards and my TU FICO went from 791 to 810 when they all reported at zero.

[razr]

Optimum for FICO is 1-9% utilization.

-r