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  1. #1
    Registered User New Member

    Need advice on what to pay down to improve credit scores!

    I have come into $13,000 and need to pay down some debt to build my scores back up. They are not horrible, (659 middle), but I need to get it up to the point I can qualify for conventional financing. Income is not a factor, just getting the score up. I have two cards that I owe $9000 on that have limits of $18k and $12k. Then I have about 8 or 9 others that have smaller limits and smaller balances ranging from owing $1000-$2600 with smaller limits. What would you do? How can you advise me? I need something that is going to make immediate differences in my score. I was thinking of paying off all 8 of the small ones leaving me with just the two large cards (they have the best rates of under 10%).

    I need the advice quickly as I need to pay these off/down on Monday so I can get the credit adjustments by January.


  2. Need advice on what to pay down to improve credit scores!
  3. #2
    I recommend paying down the cards with lower limits first for a few reasons.

    The first is that it will be easier to increase the percentage of your available credit for each of these accounts. The percentage of available credit (or credit utilization ratio) on each account is a factor in determining your credit score and by paying down the small cards you are drastically improving the credit utilization ratio on the majority of your accounts.

    Secondly, you *feel* like you are making more progress and actually achieving something by paying down your smaller balances first. This will help to motivate you to tackle the larger balances when the time is right. Never underestimate the power of the mind and just how much a little motivation can help you to maintain persistance... remember that in the end increasing your credit score is all about persistance.

    Keep us updated!

  4. #3
    Registered User New Member
    Thanks!!! I will do this and I will also keep you updated.

  5. #4
    Kevin's advice is spot on. Pay off all of those small accounts first and then go after the big ones.

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