I am surprisingly having to clean up my credit. I have some extra money – what should I pay off first?
I found out these rules; can anyone verify these?
1) you need a balance of no more than 50% of your debt in unsecured loans. True? Does this include my mortgage payment? My unsecured loans are at lower interest rates than my secured loans.
2) One should maintain no more than a 50% overall balance on credit cards (versus total credit limit). True? If so, is that in aggregate or card by card? That is, if I have 7 credit cards and 1 with a balance over 50%, does that still hurt my FICO score?
Thanks for any help you can offer in advance.