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Gidgetx1

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i want to understand how to raise my credit score
I have 3 credit cards. One says zero utilization, one says 35% utilization, and the one that I used for balance transfers to pay off 2 other cards says 82% utilization. I want to increase my credit scores so my question is this, if I get a new credit card and transfer 1/2 of the amount from the card that's 82% utilized, will that help or hurt my credit scores??? I just don't really understand it. Any help would be awesome 😊

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This might help.

Helpful to 7 out of 8 people

Try paying down the 81% utiliaztion first. Get that down to under 50% BEFORE applying for another card. Also, look for the pre-authorization forms BEFORE applying for the card. I know the QuickSilver has 0% till 2016. Or apply for a personal loan to pay off alot of that debt and pay the loan payment, which helps your credit spread and on-time payments.

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Hi Gidgetx1, the answer to this one will be complex.  On one hand, yes, by lowering the utilzation from 82% to 41% on your current card and transferring that to a new card that should have a positive effect on your score. Credit agencies not only look at your total utilization rate but also utilization on each revolving account.  However, keep in mind that if you apply for a new card it is likely they will do a hard pull for your scores/reports which has a negative effect. I'm sure it's debatable which effect is stronger but even if it's net positive I'm not sure it's worth the effort. I would recommend only applying for a new card (0% APR for 12-18 months) and performing balance transfers whenever you have balances that are accruing interest.

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Raising score with utilization technique

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Good advice above.  If you have a total of three cards; one with 0%, one with 35%, and the newer card with 82%, look at total utilization like this.  Say your 0% card has 0.0 balance with a 3,500 limit, the 35% card also has a limit of 3,500, and the 82% card has a 5,000 dollar limit.  These are just examples to explain what happens to utilization figures with new cards and manipulation by shifting balances around.

This figures out at this point to:  zero balance for the first card, 1,225 dollars for the second card, and 4,100 dollars for the third card.  Your total balance at this time is  5,325 dollars for all three credit cards.  Since you have a total amount of credit limit equaling 12,000 dollars, that figures out to roughly 44.4% utilization rate for all three cards.

I would not recommend jumping to another card too quickly at this point, because it causes too many "hard hits" to your credit score, and makes one look desperate to find new credit just to lower another card or other debt.  The three credit bureaus look at it that way, and it will only cause a dramatic drop in your scoring at this time.  Hopefully, the third card you used to pay on the other two has zero interest for 12-15 months.  Regardless, consider paying the 82% card down quickly, while paying steadily on the 35% card.  Do this for several months to a year, while patiently getting your total utilization down under 30%, and preferrably closer to 10%.

This technique will cause your score to rise continuously, getting you where you would like to be.  Don't rush the next card application too quickly, and you'll probably be surprised with some low or zero interest card offer in the near future.  I raised my credit score 204 points in less than nine months, but I would not necessarily recommend that procedure to everyone trying to move your score up quickly.  Look under my blogs here to see what I did to accomplish this.

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