Pay off or pay down?

3 years ago

Fri Aug 06, 2021 6:44 pm

AllZero

Outlier

AllZero has been gardening for over 2 years.

Level29 Last INQSaturday, March 26, 2022 Gardening For2 years, 5 months, 21 days, 13 hours, and 23 minutes Next Level in9 days, 10 hours, and 37 minutes on September 26th INQ 1yr onSunday, March 26, 2023 INQ 1yr reached1 year, 5 months, 21 days, 13 hours, and 23 minutes ago INQ 2yr onTuesday, March 26, 2024 INQ 2yr reached5 months, 21 days, 13 hours, and 23 minutes ago

It depends.

If it is a score boost, which FICO version is important to you, mortgage scores or FICO 8/9.

Will you be credit seeking?

Your scores may be impacted by the highest individual utilization. Ideally, you want it at or below 29%.

If not credit seeking, then take full advantage of the 0% promo.

3 years ago

Fri Aug 06, 2021 6:55 pm

ToxikPH

Rebel AdministratorProbably Applying for New Cards

Recent HP or new account.

Level0 Last INQFriday, August 23, 2024 Gardening For24 days, 13 hours, and 23 minutes Next Level in6 days, 10 hours, and 37 minutes on September 23rd INQ 1yr onSaturday, August 23, 2025 INQ 1yr in11 months, 6 days, 10 hours, and 37 minutes INQ 2yr onSunday, August 23, 2026 INQ 2yr in1 year, 11 months, 6 days, 10 hours, and 37 minutes Goal6 months Goal DateSunday, February 23, 2025 Goal In5 months, 6 days, 10 hours, and 37 minutes

Allzero wrote: ↑Fri Aug 06, 2021 6:44 pm It depends. If it is a score boost, which FICO version is important to you, mortgage scores or FICO 8/9. Will you be credit seeking? Your scores may be impacted by the highest individual utilization. Ideally, you want it at or below 29%. If not credit seeking, then take full advantage of the 0% promo.

There is a possibility of me needing to apply for rent in January and I'm not sure how that is affected by credit. How should I navigate it with that lens?

3 years ago

Fri Aug 06, 2021 7:03 pm

AllZero

Outlier

AllZero has been gardening for over 2 years.

Level29 Last INQSaturday, March 26, 2022 Gardening For2 years, 5 months, 21 days, 13 hours, and 23 minutes Next Level in9 days, 10 hours, and 37 minutes on September 26th INQ 1yr onSunday, March 26, 2023 INQ 1yr reached1 year, 5 months, 21 days, 13 hours, and 23 minutes ago INQ 2yr onTuesday, March 26, 2024 INQ 2yr reached5 months, 21 days, 13 hours, and 23 minutes ago

You got about 5 months to go. It may vary on which version the rental agency may pull. They could even use VantageScore

? I would reduce the 35% individual utilization. From $1733 to at or below $1450.

3 years ago

Sat Aug 07, 2021 3:58 am

BrutalBodyShots

Senior AdministratorGoodwill Saturation Technique Author

BrutalBodyShots has been gardening for over 2 years.
BrutalBodyShots has achieved the Garden Goal !!

Level27 Last INQMonday, May 23, 2022 Gardening For2 years, 3 months, 24 days, 13 hours, and 23 minutes Next Level in6 days, 10 hours, and 37 minutes on September 23rd INQ 1yr onTuesday, May 23, 2023 INQ 1yr reached1 year, 3 months, 24 days, 13 hours, and 23 minutes ago INQ 2yr onThursday, May 23, 2024 INQ 2yr reached3 months, 24 days, 13 hours, and 23 minutes ago Goal24 months Goal DateThursday, May 23, 2024 Goal Achieved3 months, 24 days, 13 hours, and 23 minutes ago

Can you in 5 months time have the best of both worlds and get both paid off? If so, which you do first will matter much less.

If you're looking to maximize mortgage scores, paying off the lower utilization card first may be best to obtain another account with a $0 balance. If you're looking at newer Fico scores, taking the highest utilization one down below the next threshold point could be worth slightly more.

3 years ago

Sat Aug 07, 2021 3:03 pm

Taurus22

Secured Rebel

@ToxikPH If you paid $375 toward the 19% card, you would break that below the 10% threshold. (~9%) If you then paid the remaining $425 toward the 35% card, you would break below the 29% threshold. (~26%) You would drop both UTI factors below important scoring thresholds that way. Just my $0.02