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 Scores
Profile Image

Question By
Sammydlc

0 Contributions
0 People Helped
Pay off one card off or reduce balance on 2 credit cards?
I have 2 credit cards with high rates.
1st 2K balance
2nd 1K balance

I have 2K in cash to pay either one or reduce both. Should d I pay off my 2K first or the 1K and lower my 2K blance in half? I need to increase my credit score soon.

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
Top Contributor
122 Contributions
304 People Helped
Most Helpful Response

Card Payoff

Helpful to 1 out of 1 people

I am assuming that they are both maxed out. When your cards are at or near their limits it has an impact on your credit score. Your utilization which would be 100% on both of these also has a very high impact on your score. Personally I would pay the $1K card off and put the additional $1K on the 2K card. That will reduct your utilization to 33% and also drop both cards off the "almost maxed" list. This should help your score in the near term. Try to get that 2K card to 20% utilization ($400 balance) as soon as you can. That will help too. Best of luck to you!

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.