To increase my credit score, should I pay off my $2,000 chevron credit card some to that and some to another?

Deal Score0

I have three credit cards. One is bank of America it’s maxed out at $ 7,500. One is capital one. It’s maxed out at $ 3,500. One is chevron. It’s maxed out at $ 2,000. Should I pay off chevron totally and close it or pay off some that and some to capital one which would make my score better? I’m sure my credit score is not good bc my cards are so maxed out
Ps: I only have $ 2,000 extra right now.

  1. Reply
    August 29, 2013 at 12:48 am

    do not close them after you pay them off unless they have an annual fee.
    attack the one with the highest interest rate off first and pay it off fully.

    right now, cut up all those cards. burn them. or let your hamster have at it.
    you bet your score is a disaster, but worse is all that interest you are paying.

    the proper way to use credit cards is to pay in full each month.
    that gives you the best credit scores. the minimum is not full payment.

  2. Reply
    August 29, 2013 at 1:39 am

    For the purposes of improving you score, it makes no difference which you pay. Your overall debt to limit ratio will be the same and that is what impacts your score the most.

    Put the $ 2K on the highest interest rate card. That will give you the most bang for your buck. Then work on paying off all the card balances one at a time. Throw everything you can squeeze out of your budget at that highest interest rate card while making minimum payments on the rest. When the highest rate card is paid off, move to the next.

    Don’t close any account until you have them all paid. closing an account will lower your overall limit and you won’t improve your debt to limit ratio at all.

  3. Reply
    Calvin C
    August 29, 2013 at 2:16 am

    based on the data you gave your credit will be crap for years better off with bankruptcy

  4. Reply
    August 29, 2013 at 2:43 am

    Since we are talking about credit score and not interest rates etc. If you want to improve your credit card, I suggest putting $ 1000 on the Bank of America card , $ 800 on the Capital One card and $ 200 on the Chevron card. A big component of credit card FICO score calculation is based on your debt to service ratio or how much money you have a available. Since you are currently maxed out, by distributing payments to all three cards this will no longer make you maxed out on the 3 cards.

    Going forward try to pay as much as you can on these cards and when you pay one off, put it in a zip lock bag with water and freeze it in the freezer so you can’t use it. Do not cancel the card. By cancelling a credit card this lowers how much credit you have available to you in the system and will negatively impact your score in an instant.

    Try to pay these cards as much as you can, if you have an extra $ 20 here and there, swing by the bank and throw it on the card. The balance will come down faster than you realize. Lastly, always pay more than your minimum payments, remember that by just paying the minimum payment your $ 7500 dollar card could take well over 60 years to pay, depending on the interest rate.

    In terms of wise financial choices, it is always good to pay your highest interest rate cards faster and apply a higher portion to those cards, this will save you money in the long run. Good Luck, I truly wish you the best of luck and hope that you learn Cash is King! and adopt that type of mentality. If you can’t buy it with cash, don’t bother šŸ™‚


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