Managing Utilization/Payoff

[seriousbiz4me]

I am about to payoff the balances of my cards. My utilization is very high and has impacted my score. I need some guidance on the process.

I want to get my utilization down to less than 10% or even 0% . 

I used a simulator and it was giving me way too much good news. I don't want to close any of the accounts. 

I have 3 cards over $5k I want to pay them down first. Credit lines totaling about $20k. 

Any suggestions as to how I proceed? Should I call to try to get some of the interest decreased on the balance first? 

Does the date matter? 

Thanks 

Biz

[shifter]

What are the lenders of each card and credit limit + balance? How long has your util been high? Have you been paying only the minimum each month? Depending on these answers, you may want to be strategic to avoid balance chasing.

 

Long term for the best score optimization, you want all cards with a $0 balance except one card with a small balance. Usually $2 is used, so this is called the $2 Trick.

[seriousbiz4me]

Thanks for responding and offering to assist.

Been high for a couple of years due to only paying minimum due.

Just had three lates on the report this month for the first time on any account. Life was happening. Never missed any of the payments on any account, including mortg., ever. This system is rigged against us. Before life my utilization for all accounts hovered around an avg. of 20%

Are you saying that one of the account should have a $2 balance. What is the result of that? What is balance chasing?

I can pay the balances on all of these? Is timing important. Should I go somewhere and dispute the lates?  I had made arrangements for paying them and they still reported them.  All under $100. 

Please recommend a strategy. 

 

Score:  EX  May 684        EX Aug: 572

FICO dropped 4 pts this month

                                         CL                                       BAL                                 UR

PenFed 

$6,000

6,231

103.85%

Capital One Bjs  

11,000

5,766

52.42%

Capital One QuickSilver 

6,300

5,712

90.67%

Discover  

$12,500

7,098

56.78%

Aven (definitely bringing this to $0)  

$35,000

35,372

101.06%

UpGrade  

$12,000

5,288

44.07%

[seriousbiz4me]

Another question.  If I payoff the Aven HELOC will that action result in a ding because it is a HELOC?

Thanks.

 

Thanks for responding and offering to assist.

Been high for a couple of years due to only paying minimum due.

Just had three lates on the report this month for the first time on any account. Life was happening. Never missed any of the payments on any account, including mortg., ever. This system is rigged against us. Before life my utilization for all accounts hovered around an avg. of 20%

Are you saying that one of the account should have a $2 balance. What is the result of that? What is balance chasing?

I can pay the balances on all of these? Is timing important. Should I go somewhere and dispute the lates?  I had made arrangements for paying them and they still reported them.  All under $100. 

Please recommend a strategy. 

 

Score:  EX  May 684        EX Aug: 572

FICO dropped 4 pts this month

                                         CL                                       BAL                                 UR

PenFed 

$6,000

6,231

103.85%

Capital One Bjs  

11,000

5,766

52.42%

Capital One QuickSilver 

6,300

5,712

90.67%

Discover  

$12,500

7,098

56.78%

Aven (definitely bringing this to $0)  

$35,000

35,372

101.06%

UpGrade  

$12,000

5,288

44.07%

[shifter]

Sorry to hear about the LPs. That's unfortunately going to have a significant impact on your scores for years. In this case I would just pay off everything that you can ASAP. 

 

You can try GW letters on the LPs, but with C1 and/or Penfed there's a nearly zero percent chance of that working. 

[seriousbiz4me]

Thanks for your input.  I am paying them all down to $100.  Over a 6 mo period, pay them off one by one.  Afraid to pay them all down and get the CL reduced for it.  What is the best CRA to sign up with IYO?  Is it worth paying for bad simulators and reports?  Fortunately, the lates are not them. And, I have an email agreeing to a hardship for a month. I am expecting that once I meet the terms the lates will fall off.  What is balance chasing? In 6 months I may try for an additional CC with high CL. 

I have been on this board for many years using it on and off.  I scrambled to try and avoid these lates. Alas ! 

I just want to get back to 700 or over.  Have a great day.

[shifter]

On 8/26/2025 at 11:55 AM, seriousbiz4me said:

What is balance chasing?

Paying them down and getting the CL reduced. But I wouldn't really worry about that too much. And paying them all down to $100 rather than $0 is unlikely to prevent balance chasing. If you wanted to try to avoid balance chasing you would pay off about 1/3 of each balance and see what happens. If nothing, then pay off the rest the next month. 

[seriousbiz4me]

<<rant>> I have been here long enough to know how the system is rigged. I had two late pays in Aug. after more than 10 yrs of zero late pays.  In Sept. I brought down all of my utilization below 12% and 85% of all cards below 10%. Before the LPs the only problem was utilization. All other analysis was Excellent. My score was 680-694 -690 on July 15th . With one LP, it dived to 634 650-670 on Sept. 15th. Now after large payments, I am at 619-541-562. I have 3 accounts that have decreased my CL by $3,500. I am trying goodwill letters and protests. Two of the CL decreases had never been late. The conspiracy to keep the credit scores low using the combination of compounded interest which increases the balances, and scoring to decrease CLs to impact scores is outrageous.

In a discussion with Discover today, I explained that their system punishes ppl who meet their obligations and the decision makers need to understand that as a reason why ppl are more and more opting to debt relief programs to share the punishment.  I added that had I remembered that they behaved like predators, rather than pulling $$ out of a CD to pay of , I should have taken the option.  

[chicagorich]

You had a pretty good balances across multiple cards. Ding #1. You ended up with late payments, ding #2. Unfortunately, creditors see those late payments on your report and take adverse action against you for being late anywhere. It sucks, but the system is not likely to change. You are just a number to the bank.