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bikaner

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My credit cards balance 6700 recently I paid 2500.,what will effect on credit score
Only one major card reduce 2500

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Top Contributor
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Do you really have to ask?

First off, congratulations on paying down your credit card by $2500.  That will cut your interest expenses considerably, which will help pay down the remaining balance that much faster.

One of the factors affecting your credit score is the percentage of your credit limit that you're using.  This is calculated both across all your credit cards as well as for each credit card.

Believe it or not, using more than 30% of your credit limit is considered excessive.  If your credit limit on this card is less than $14,000, your $4200 balance will still be above 30%, but this will still be a big improvement that should be reflected in a higher credit score.

If your credit limit is $10,000, for instance, you'll be going from 67% utilization to 42% utilization.  Nothing magical is going to happen to your score when you get your utilization down to 30%, though it's even better if you can get it down to under 20%.  However, once you get under 10% utilization, lower levels of utilization will have little effect on your credit score.

It's impossible to say if this is going to improve your score by 5 points or 25 points, but as you bring the balance down more, you should see further increases in your score.

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