Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
MrOry38

0 Contributions
0 People Helped
2 cards at 60+% of use - taking them lower one at a time or...?
Here is my credit status - 3 cards (all over 6 years old), 1 tiny mortgage, no car payment, no other debt.

1 credit card is kept at a zero balance - paid off monthly. 2 other cards are at 13% interest rate and both are within a few percentage points either way of 65% of use.

I am in a good financial position now to lower my debt on both 13% cards substantially. Questions is should I take them both down at the same time incrementally or favor one card over the other until I reach 30% or so with one then work on the other?

Or a longer term option - Better to pay one off completely meanwhile paying only the minimum on the other? Then start the process on the other.

Thank you for your help.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
7368 Contributions
3810 People Helped

Keep usage below 20%

Your best bet is to pay off cards every month so you don't end up paying interest.  Does it really make sense to pay more for something just so you can use a card to buy it?

If you keep the total credit card usage below 20%, your credit score will raise.  Mine was 10% but, because of a recent trip and the expenses, it raised to 11% usage and my score dropped by 1%.  So, as soon as I get that paid in full, my score will be back up.  And I don't like paying interest when I don't have to.  I consolidated my cards and the majority of the balance is at 0% until the end of the year, though it will be paid before then.

As fast as possible, pay off the credit cards and pay them in full every time you get the statement afterwards so you both save money and raise your credit score.

Top Contributor
16 Contributions
88 People Helped

It really depends on your situation and how fast you can pay off the balances. For the most part, always pay off the highest rate first. Otherwise, if the rates are similar, I would try to pay down one to below 30% then the second and repeat to get one to no balance and then the other.

If you have a balance transfer offer for a low rate on the daily use card and enough credit limit to transfer one of the other balances, do that. Then use the paid off card for your daily usage and pay the other off asap. Although this will only help if you will be able to pay off the transfered balance by the end of the low rate period or the rate it will switch to after the low rate period is also around 13%. You can save $130/year/$1000 of balance transferred to a 0% card offer, which you can then use to pay towards the balances.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.