Credit card debt question

Discussion in 'Credit Talk' started by jeffalan49, Jan 6, 2016.

  1. jeffalan49

    jeffalan49 Member

    Hello. All 3 of my scores are around the 650 mark. I have 3 cards with high balances: 1) I owe CreditOne $991 with a limit of $1000. 2) I owe CareCredit $477 with a limit of $800. 3) I owe Home Depot $490 with a limit of $500.

    Will paying each card down to say 25% boost my credit score?
    I have nothing derogatory on my reports and the last time I was late on any bill was in January 2012.
    Thanks in advance for any suggestions.
     
  2. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    Welcome to Creditnet!

    Yes, your credit utilization ratio is a significant factor in your credit scores. Based upon the numbers you provide here, you have $2,300 of available credit and you are using $1,958 of that, which is a credit utilization ratio of 85%.

    If you pay down your balances and get your ratio under 30%, you should see a big boost in your credit scores across the board. In the future, your goal should be to shoot for a credit utilization ratio of less than 10%.
     
  3. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    Also, I'm curious what credit scores you are looking at. Are they FICO scores or FAKOs?
     
  4. JoshuaHeckathorn

    JoshuaHeckathorn Administrator

    Hey there, just wondering if you got the help you needed with your credit score question. Let me know if I can be of any further assistance.
     

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