What is cheapest way to improve credit score if you have several cards with high balances on them?
Question by gladtobeinla: What is cheapest way to improve credit score if you have several cards with high balances on them?
If you have several cards with close to max amount used on them is there a “magic percentage” like paying 65% off or 60% off in order for the credit score bureaus to take note and give an improved credit score?
Best answer:
Answer by Todd S
Under 20% is the magic number per industry experts. So the best way to get your balances down below 20% would be to either pay them down that much (if possible), or execute a balance transfer. If you go the balance transfer route, you’ll have a high balance on one credit card as opposed to two or three or however many cards you’ve got.
The downside is opening a new credit card, which can lower your credit score temporarily. But long term, eliminating those balances will far outweigh the ding for opening a new credit card. A balance transfer credit card will probably also save you a lot of money in interest.
Add your own answer in the comments!
To make your score go up, you simply have to pay off the balance. No magic numbers or percents, you just need to not carry a balance. If you do have a balance, 30% or less!
As soon as you have repaid your debts, apply to get a new credit card to build a great credit historical past. It might be less difficult at first to obtain a department-store or gasoline credit card or 1 from an employee credit union. Promptly pay off the balance on the credit card month-to-month to build excellent credit. Use the card responsibly. In the event you don’t qualify to get a typical credit card, apply to get a secured 1.
Definitely want to be at least under 50% of available credit. But like other user stated, under 30% is really ideal.