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Question By
a1cwelsh11

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Credit Card Utilization
I plan to use my tax money to pay down some credit cards. I will have just enough money to pay down my utilization to 30% which is decent. I have several large limit cards that are close to their limits and some smaller ones that are close as well. My question is, should I make it 30% percent across the board on each card or should I pay off those large balances and use the payment that I won't have to make anymore to pay on the smaller ones? Or does it really matter? Looking to get an auto loan in the future and my utilization is likely gonna kill me with approval and rates. Any advice would be greatly appreciated!

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I would pay off the cards that have the highest interest rate first, so you are paying less on interest and more on principal balance.  But some folks prefer to pay off the lower balance cards first; they feel like they're getting somewhere on them.  Any way you want to do it is OK, just pay them down and it will help your score.  Remember, once they are paid up, don't close them or you'll hurt your credit score by taking away that line of credit and the history.  Good work and best of luck on the auto loan!

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