My score is 713 and I need it to be 740. I have an old navy card I just paid off and another small credit card to pay off this month. Will that increase my score enough? Is it better to pay off the small ones completely or pay down a larger one to under 50%?
Paying the highest interest rate first will get rid of the debt faster and help build wealth, but it won't necessarily help the scores. Neither will paying the largest balance, unless it's also the highest ratio. To increase the score, all accounts should have low utilization. That's why you have to know what the desired immediate outcome is. If it's get rid of debt fastest, then highest interest rate first. To increase scores, get all utilizations down. I'm not sure of any reason to pay the biggest balance first.
Personally I am trying to pay my biggest balanced card off first. Which is also my highest limit card. I consider this card my "traveling card", emergency flights to attend funerals - just last year my mom died in Budapest, Hungary, the year before it was my dad who passed away, and this year possibly both of my grandmothers. Odd how some parents outlive their children. Both of my grandmothers will/might be 102 years old this year. I guess my grannies never got ran over by reindeers.
Refinance The reason I'm asking is because we want to refinance our house and to get the best rate, I've been told the magic score is 740. My goal is to increase my score quickly...yes I want to pay down debt, but initially, I want my score to take a quick jump to get the best rate.
Since you're looking for a quick boost, I suggest you pay down the cards you mentioned as "larger ones" to well under 50%. If you have the means to get your utilization to 10% of the available credit limit or less, that's the best case scenario. Also, don't close out any of your cards before applying for the refi, and avoid having your credit pulled for the next few months.
