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
srn3884

0 Contributions
0 People Helped
How much will paying off credit card debt impact my credit score?
I'm trying to figure out how much debt repayment actually changes my credit sore. I currently have four credit cards with about $20,500 of credit available. The balances all add up to about $18,000. My credit score is 600, but only a year ago (before my messy and expensive divorce) it was 740. I've had one small debt sent to collections, which I'm going to pay off in the next few days. I am also paying off my smallest card today, which will bring my debt down to $16,500. Will this impact my score much? How much should I expect my credit score to improve if I'm able to improve my credit card utilization from where it is now (about 89%) to 70%? 50%?

I know that fixing my credit is going to take time, but I'd like to know what to expect in the coming months/years. Thanks!

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
8 Contributions
18 People Helped

I wouldn't waste the effort paying off the smaller card unless this is the one with the highest interest. You should focus on the high interest cards first and Credit Karma's chart seems to indicate that yes, in fact getting your utilization under 75% (74% and less) is viewed as a little better by creditors than having 75% and above. Below is half of their chart. 

30-49%

FAIR

50-74%

POOR

75%+

VERY POOR

Result 1-1 of 1Results 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.