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photoguy 12-29-2010 12:27 PM

Overall Credit Utilization and Credit Score
I'm expecting a large cash flow next month, and I'm wondering how best to use it in light of my current debt and upcoming financial decisions. I'll be applying for a mortgage soon, and I want my credit score/report to look the best possible, so I'm wondering how best to approach this.

I'm currently using about 72% of my available credit across all accounts. Some of my accounts are at zero, others are around 90-94%. From what I understand, its always best to use about 30% or less of your available credit across all accounts (ie. carry a balance on all accounts, rather than lumping it to one).

With the cash flow I have coming in next month, I'd be able to pay down all, but one of my cards. That would bring my overall credit utilization down to 54%. This would leave all my accounts at zero, but one of them at 94% utilization.

Psychologically it would be much more advantageous to just pay down all my cards, and leave only one of them with a balance. However, I'm not sure if that's the smartest route to go. Thoughts?

mycreditgroup 03-06-2011 07:18 AM

Re: Overall Credit Utilization and Credit Score
FICO looks at both individual utilization as well as cumulative. So given that you cant pay them all down I would focus all your efforts on the highest interest rate cards.

littleroc 04-01-2011 04:41 PM

Re: Overall Credit Utilization and Credit Score
It doesn't matter, time and making payments/credit availability to balance % will increase your credit score, mine is great and we only use our 1 cc for gas and pay it off each month plus we pay our mortgage on time.

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