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Question By
dochypnos

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Which move is likely to increase my score most?
I have one CC with a $2,000 balance with a limit of $3,500 and I have another card with $19,000 balance and a credit limit of $22,000. Which is more likely to increase my score, Paying off the entire $2,000 balance or paying down my $19,000 card by $2,000

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Increase Score

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Although your total credit utilization will be the exact same, I would suggest paying off the smaller card. Rationale is that you will have one card near its credit limit rather than 2 of them which will have more of an impact on your score. 

Reply by
dochypnos

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Thanks, my question was about increasing my score so that's what I will do.

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With that high of a total utilization I don't think 2000 payment on one or the other will impact your credit score at all.

Things to think about,

how  long will it take so your total utilization will be below 50%,   then 40%  and then 30%.   These are the targets that were you should see some movement in your credit score.

Is it better to payone off so you can focus on just one payment?    There is a downside,  you are only making one payment,  if you make 2 payments each month then you are increasing your payment history.  If you have any latepayments then make the payment on the High CC balance so your 2 payments each month work in your favor by building your payment history.  

Good Luck

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Re: Addison 170's response

Doc,

Depending on how much you can pay and when you can pay it will be a major factor in the answer to your question.  As far as your credit score, total utilization is important.  However, since you are talking about a flat payment, then the answer is different.  If you completely pay off the card on which you owe $2,000, then the interest on that card will be 0.  If you cannot for the foreseeable future see paying off either card, then paying down the card with the highest interest rate will save you money, enabling you to pay off the total balance due faster.  I hope this helps.

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I would pay down the one that has the highest interest rate to save you money.

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