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nolelala

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Which is better to do?
I have money from my tax return should I completely pay off one credit card which happens to have the lowest APR or should I just apply that money to my biggest credit card debt with the highest APR. Thought it might help my credit more to pay one off completely and continue making large monthly pymts to the other.

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Here's what I'm doing...

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It was explained to me by my bank that credit card debt doesn't hurt your score very much if the balance of the card is under 30% of your available balance. I have the same issue right now so here's what I have done. 

I took just enough from my tax return to get my lower credit card under 30% and put the rest towards the bigger card. Now my monthly payments on the lower card have decreased since there is a smaller balance due and I pay the minimum on the lower card and put as much extra towards the bigger card in order to get that one down to 30% as soon as possible. Then I will work on paying them both off. 

Hope this helps and good luck!!!

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Good thinking.

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In my opinion, it would be a good idea to pay off the one credit card, then put it away for a bit while you take what you have been paying on that account and add it to the payment you are making on the other card.  Then you will have that one paid off quickly.

After the high interest card is paid off, you can keep it for occasional use, which you'll want to pay off monthly.

Don't close the accounts, though.  Showing you have an available credit limit is good and helps build your credit account history.  The longer the positive history, the better.

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