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Question By
renoir1245

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Fico score & number of accounts with balances
I have four credit cards with a total credit limit of $32,500, individual limits ranging from $7,500 to $10,500, and balances of $1800 on one and $1300 on another . To generate the best Fico score should I leave these balances on two card or consolidate them onto one card having the $10,500 limit.

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Top Contributor
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One key factor you left out, what are the limit on the two card with those balance? How would the utilizations percentage change before and after? If it's higher after you combine the two? Then don't do it, if it's less? Then combining the two might see some score boost but I wouldn't expect much, as you currently don't have that high of utilizations anyway. When you should consolidate because it would cost you less interest and not necessarily just for the scoring purpose.

Reply by
renoir1245

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Card with $10,500 limit has $1,300 balance, and card with $7,500 has an $1800 balance.  Both balances are

at a 0% promotional rate for the next year and will be paid in full within 10 months.  If I reduce total below $3,000

and transfer the lower balance to the $10,500 (thereby keeping utilization below 30%), will one card below below

30% generate a fico score lower than two cards having utilization rates of 13% and 24%?

Thanks for your input. 

Top Contributor
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Paying interest is wasted money. Your goal is to use credit for rewards, keep utilization down to 10% on each card, make on time payments, and pay them off every month.  Mortgage interest is tax deductible filing long form taxes. 

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