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Posted in Credit Cards
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Question By
sheabee

4 Contributions
6 People Helped
pay $3k to pay off highest interest card (20%) at 49% cc utilization. Or $4k to reduce 2 maxed cards
should i i pay off a cc completely (20% apr) but it's currently at half the card limit. or should i pay 2k each to two cards that are completely maxed out? they are at 95% and 93% credit card utilization.

interest rates on those two cards are 12-14% but they have much higher balances.

i want to improve my credit score but also pay the debt of as quickly as possible.

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Top Contributor
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The only effect on your credit score that your two options give is that you will be paying $1k less in the first option. Your credit score takes into account your overall utilization rate, not the rate of each individual card. Your best bet is to pay off the card you can pay off in full for two reasons: 1) it is a higher interest rate so in the end it will save you money, and 2) completing a payoff with be a mental victory, seeing that card paid off everytime you log in here is going to subconsciously make you feel good and further motivate you to attack your other two cards.

If you are able to pay $4k on your other two cards, then what I would recommend is paying the $3k to pay off the higher interest card and using that other $1k by paying $500 on each of the other two cards (or even just drop the whole $1k on the higher interest of those two cards. $4k debt being paid off is going to effect your credit score no matter how you slice and allocate it; however paying $3k instead of $4k is not going to have as great of a boost to your credit.

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