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revolving debt to limit issue

Discussion in 'Credit Talk' started by tboy74, Oct 6, 2003.

  1. Oct 6, 2003 #1
    tboy74

    tboy74 Well-Known Member

    hey ... i just got a loan to pay off my cards -- is it better for my score to pay the cards completey off to 0 or better to pay each card to 35 percent of its utilization (even if the cards have high APRs?)

    thanks!

    tboy
     
  3. Oct 6, 2003 #2
    faztcobra

    faztcobra Well-Known Member

    According to what I've seen on here, I'd probably pay it down to 5%, maybe 10% at the max. Having a low utilization is great, but your scores drop for having everything paid off.
     
  4. Oct 6, 2003 #3
    GEORGE

    GEORGE Well-Known Member

    I ALWAYS PAY HIGHEST INTEREST RATE TO LOWEST INTEREST RATE...(for economic reasons)

    THE HIGHER THE INTEREST RATE...THE BIGGER THE PAYMENTS...(LIKE MONTHLY PAYMENTS 2 OR 3 OR MORE TIMES THE MINIMUM PAYMENT)

    "IF" you have enough EMPTY cards to balance...it works fine...IF NOT...then keep all cards under 50% or better yet...under 30%
     
  5. Oct 6, 2003 #4
    Hedwig

    Hedwig Well-Known Member

    I'd pay the high interest ones to zero and leave some on the others if you want.
     
  6. Oct 6, 2003 #5
    willgator

    willgator Well-Known Member

    Re: Re: revolving debt to limit issue

    I would pay them off then use once a month and pay off again...
     
  7. Oct 6, 2003 #6
    tboy74

    tboy74 Well-Known Member

    Re: Re: revolving debt to limit issue

    thanks for all the advice ...

    i have 350 left on a 28 percent APR
    3000 on a 19.9%
    and 400 on one that is 4 APR but will go up to 17 in march


    how much do you think i should leave on them?

    tboy
     
  8. Oct 6, 2003 #7
    GEORGE

    GEORGE Well-Known Member

    Re: Re: Re: revolving debt to limit issue

    Pay the $350 IN FULL A.S.A.P.--->28% IS A LOSING BATTLE!!!

    Pay min on the 4% account and as much as you can on the 3rd...

    I WOULD NOT LEAVE ANYTHING ON THE 28% CARD
    Use it every 3-6 months for ONE tank of gas and PAY IN FULL
     
  9. Oct 6, 2003 #8
    Hedwig

    Hedwig Well-Known Member

    Re: Re: Re: revolving debt to limit issue

    GEORGE is right. Pay off the highest balance first, then the next, then the 4% last. You want to pay if off by the time your BT rate expires.

    Then use them all every month and pay them off. The monthly balance on your statement date will report as your balance, so try to not charge more than 30% of your credit limit on each card.

    If you need to carry a balance, always do it on the one that gives you the lowest rate.
     

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