I have 3 major credit cards with 62%, 87% and 42% utilization. When I get my tax refund, about $1500, I could totally pay off the one with 62% usage or spread the love and bring 2 of them down below 30% usage. Which would be better for my credit?
Hi, @lglafa, and welcome to the community. If you could get the two highest-utilization cards down below 30%, that would be better than keeping either the way it is.
Of course, credit utilization is only one factor to consider. Targeting the highest-rate card first is often the fastest way to get out of debt, and that may be best for your credit in the long run.
If you have a specific goal – a reason why you want good credit – and could share some details about how much you owe on each card, we can help you with some more personalized strategies. In any case, though, we’re glad you’re here and that you asked the question!