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    Pay some cards down or pay a couple off

    Hey!

    Sorry if this has already been asked, but I'm trying to pay on my credit cards. I have some that are as good as maxed. Now my question is: what will boost my score more - having a few more with 0 balance or pay all down to a certain utilization ratio? Utilization ratio is the only thing that's making my credit look really sad. I have 100% on time payments, 1 inquire within last year (over 6 months). My age of accounts isn't the most awesome, but it's been less than 10 years since my first account. It seems like the only thing that keeps me from a decent score is the UR.

    Thank you!!

    #2
    To answer your question, it is probably better to pay down the cards to lower the utilization.

    That said, why are you concerned with your score? Forget about your score and focus on getting out of debt and your score will correct itself. List your debts from highest to lowest interest rate. Pay the minimum on all but the highest rate and put every spare penny you can to that card until it is paid off. Then move on to the next highest rate and so on.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

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      #3
      That's what I thought and it makes sense and I already put an action plan in place, I just wanted to make sure my thoughts are correct...looking to buy property, so boosting score is a priority right now!

      Comment


        #4
        Originally posted by Betterthanyesterday View Post
        looking to buy property, so boosting score is a priority right now!
        Wrong! Paying off your debt should be a far higher priority than boosting your credit score so you can put yourself even deeper into debt.

        Do you have a 20% down payment?
        Do you have a 6-month emergency fund?

        How much credit card debt do you have? Are you really ready to buy a house?
        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
        * There are no shortcuts to anywhere worth going.

        Comment


          #5
          Well, by paying off my debt that would be the solution....which I will be able to do in a couple of weeks. So, no need to judge.

          To answer your questions, yes and yes.
          Edit: boosting score happens by paying off debt, by paying off debt you will boost score. One comes with the other.

          Comment


            #6
            Originally posted by Betterthanyesterday View Post
            Well, by paying off my debt that would be the solution....which I will be able to do in a couple of weeks. So, no need to judge.

            To answer your questions, yes and yes.
            Sorry if that was harsh.

            It would be useful if you shared more info about your situation. If you have a bunch of savings (that 20% and the EF), have you considered delaying the home purchase, using the money to knock out the debt, and then saving back up for the purchase?
            Steve

            * Despite the high cost of living, it remains very popular.
            * Why should I pay for my daughter's education when she already knows everything?
            * There are no shortcuts to anywhere worth going.

            Comment


              #7
              Well the money to get the debt paid would be separate from the whole 'purchase part', so I think that should be fine. There's funds, paychecks, bills paid on time, enough left after all expenses etc etc...it's really just "looking as good as possible" to a lender that I want to work on right now

              Comment


                #8
                Also. Working with lender and Realtor already, so they already know how my credit looks like lol....again...Just want to make myself most attractive...

                Comment


                  #9
                  Originally posted by Betterthanyesterday View Post
                  Well, by paying off my debt that would be the solution....which I will be able to do in a couple of weeks. So, no need to judge.
                  You have multiple cards maxed out but will be able to pay them all off within a couple of weeks?

                  Comment


                    #10
                    Like Steve said, more information would be helpful.

                    Comment


                      #11
                      Originally posted by Betterthanyesterday View Post
                      Well the money to get the debt paid would be separate from the whole 'purchase part'
                      I'm not sure what you mean by that.

                      Without more info, it's kind of hard to give any advice. We would need to know your income, how much debt you have, how much savings you have, how much you are looking to spend on the property, etc.
                      Steve

                      * Despite the high cost of living, it remains very popular.
                      * Why should I pay for my daughter's education when she already knows everything?
                      * There are no shortcuts to anywhere worth going.

                      Comment


                        #12
                        Sorry, not off, down...significantly...that's why I was asking whether to bring down ratio or pay some off in full...the remainder I will just pay off with the monthly payments, going from highest interest down to lowest (or going by ratio, whichever..)..not all my cards are maxed or even used. I have several with a 0 balance. I just never used them or don't even have the card for the account...that's something I want to do as well, get rid of the cards (keep them at home stored away or even shred them, I don't care), I haven't used any of them in a while...but I'd like to keep one and then make a purchase I'd do anyways, thinking get gas, pay in full...to have activity on it...

                        Comment


                          #13
                          Originally posted by disneysteve View Post
                          I'm not sure what you mean by that.

                          Without more info, it's kind of hard to give any advice. We would need to know your income, how much debt you have, how much savings you have, how much you are looking to spend on the property, etc.

                          Well, I'm not going to disclose my personal belongings on the internet. I was simply looking for advise on how to spend a chunk of money in the best way on my credit cards, thats really all

                          Comment


                            #14
                            Originally posted by disneysteve View Post
                            I'm not sure what you mean by that.

                            Without more info, it's kind of hard to give any advice. We would need to know your income, how much debt you have, how much savings you have, how much you are looking to spend on the property, etc.
                            What I mean is: the money I'm thinking about using for the credit cards is not included in the money that is put away for a house...

                            Comment


                              #15
                              Originally posted by Betterthanyesterday View Post
                              Well, I'm not going to disclose my personal belongings on the internet. I was simply looking for advise on how to spend a chunk of money in the best way on my credit cards, thats really all
                              Then you are probably in the wrong place for advice.

                              People here don't really offer opinions without a good understanding of the overall picture. Your name is anonymous so not sure what your hang up is on posting your finances.
                              Last edited by StormRichards; 02-14-2017, 09:19 AM.

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