Re: Payoff or lower balance ???

Posted by scott (65.25.99.145) on February 04, 2003 at 17:19:08:

In Reply to: Payoff or lower balance ??? posted by Len on February 04, 2003 at 17:06:53:

Sears is hard to get. I got turned down with a 724. With revolving balances fico looks at it a few ways. 1)the individual % available on each each. 2)the % of cards with any balance 3)the % of cards with under 50% balance. I think you will obtain a higher score if you pay off the one with the small balance to 0 balance. That way with another store card paid 2/3 of your accounts with have no balance. Fico considers 50% of your cards with a balance to be a bad thing so you are safe. Also, you are paying down the overall debt and the individual debt to 0% owed which is a double points. You never know how many points you will gain but that is the best way to go.

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