What card should I pay off first to help my credit score?

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VashX
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What card should I pay off first to help my credit score?

Postby VashX » Sun Jun 17, 2012 9:41 pm

I am trying to see what would best increase my credit score.

I have a total of 4 active credit cards and 1 closed credit card. 2 of the actives have a high usage ratio, as well as the closed.

Active Card 1: $2,000 Limit, $800 used
Active Card 2: $4,000 Limit, $2,900 used

Closed Card: $5,500 Limit, $2,700 used

Should I pay off the closed card or lower the usage of my active cards to below 10%?

Thanks!
Cards: AMEX Zync, BofA Rewards, Capital One Platinum


MemberSince99
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Postby MemberSince99 » Thu Jun 21, 2012 5:54 am

VashX wrote:I am trying to see what would best increase my credit score.

I have a total of 4 active credit cards and 1 closed credit card. 2 of the actives have a high usage ratio, as well as the closed.

Active Card 1: $2,000 Limit, $800 used
Active Card 2: $4,000 Limit, $2,900 used

Closed Card: $5,500 Limit, $2,700 used

Should I pay off the closed card or lower the usage of my active cards to below 10%?

Thanks!


It really doesn't matter if the card is open or closed in terms of your score - high utilization is going to hurt you regardless the same amount.

So having said that, I'd work on paying down your active cards first in whatever way works best for you since you want to keep on their good side, and worry about the closed card last. If you can knock a thousand off card 2 it should bump you up a few points.

Ideally pay them ALL off then keep you utilization below 10% for highest possible score, in the long run.

Crashem
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Postby Crashem » Thu Jun 21, 2012 8:08 am

If closed card shows limit on credit report, it doesn't matter.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

lucasoil4u
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Postby lucasoil4u » Thu Jun 21, 2012 9:55 am

I would Pay the one off with the most interest charges. That will save you the most amount of money.



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