1 People Helped
Member Since: April 2014
I've recently come into some money with a parent passing away. Instead of paying off all my cards to zero, I kept my lowest interest card going and paid off ALL my other cards to $100 balance. According to CreditKarma, a balance of zero shows Zero Utilization which is also a C grade. But if you keep 1% balance on your limit then you get an A on CCU. I'm waiting for my Credit report/history to pick up these payments to see what happens to my CCU score. My credit score is also shooting up. was 710, then 726, now 746.... BILL
wsmelser's reply was:
I am in a similar boat, just came into some money, had credit score of 710, paid $5900 on one card to get it down to $1000, credit utilization went from 75% to 59% but my credit score only went up to 724? Maybe that's correct, I don't know. My next large payment will drop my utilization to 45%, will this also help my credit score dramatically?
Is it true that if my "total debt" drops below 50% (currently 70%), then my credit score improves dramatically? That's what I've always been told but now that I'm on CreditKarma, I keep reading about 30% or less. I just came into some money with a death in the family and I'll be paying down two of my cards (apparently to $5.00 instead of ZERO). But this still will only get me to about 45% total debt usage. Will this help my credit score dramatically? I'm tired of hovering at 720 on my total Credit Score... Thank you BILL