Best way to get down to 50% of available credit?

Submitted by agjohnson1968 on Fri, 04/09/2010 - 11:22

I know that the credit utilization percentage has a big impact on scores but not sure how to approach paying things down. I just received a bonus and can use it to pay down my credit card balances to 50% of the available credit but am afraid that as soon as i do that some of them will drop my credit limits down to the new balance so my utilization percentage won't improve very much. I do have a couple of cards that would likely not drop my credit limit so i could pay those off altogether which would bring my utilization percentage down to 50% overall but not on each card.

Is the score more concerned about a credit utilization percentage overall or is it based on the credit utilization of each card?

Hi Johnson,

The credit cad issuer lowers the credit limit when the card is used less. Thus, if you pay off the dues, I don't think your credit limit will get lowered. Pay off the dues, and then make small purchases on the cards. Then, try to pay off the dues again within the time.

Other than this if you close any of your cards, your credit limit can lower and your utilization rate will go up. That can lower your score. Making payments will not lead to lowering your credit limits. Payment history will rather help you in building your credit.



Sat, 04/10/2010 - 05:29 Permalink

I'm doing great with personal credit (only started building my report last year and fico on EQX is 711) but my friends are not. A lot of them got trapped in credit card interest and don't have the capitol to pay it off.

So what they have been doing is obtaining business credit and paying off their personal debts! Does anyone else use this method?

You got too order from people that report to business credit like Strategic Network Solutions or Bitwave Design. And best of all over time they have gotten really large credit lines.

Both got coupons right now too! Sorry I loooovvve to save! but if anyone else is using this method please let me know. OH, the coupon for Strategic is promo code: snsgb
And the one for Bitwave is promo code: 213
"" and ""

Also a good method I use for my credit cards is to use them every month,but I make sure I pay the balance of in full before the due date..that way when it reports, it shows 0% utilization, you must be careful though,because the due date is different from the reporting date.
I usually let it breathe for two days after the due date before I use it again.

Fri, 07/16/2010 - 03:21 Permalink

I have a CC, right now, with a limit of $300.00. I've been paying the balance off each month. A FEW times, I couldn't pay it by he due date. However....when I COULD pay it, I paid twice as more than I usually do. I think that helped alittle, anyway.

Sun, 07/18/2010 - 01:30 Permalink
Katrina (not verified)

Instead of using your bonus to pay down your existing credit cards, you can always take the money and open a secured credit card. You should see a similar score increase with the new avail. credit, nearly the same amount if you paid your existing cards down.

Mon, 07/19/2010 - 02:04 Permalink

That's good advice,..but.. DO be careful. SOME Secured CC's do state that they will "report to the CB's." Not all of them do. I had a Secured CC, for a while (about 1 year) and they never reported to the CB's.

Mon, 07/19/2010 - 02:11 Permalink