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Originally Posted by onewhippedpuppy
Then it's stupid. Why pay out more money in the hope that you will maintain a higher credit score?
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WTF are you talking about? Where/when did I say to "pay out more money"?? He said that all cards were about the same interest. If they guy has $10k to pay down 3 credit cards, it will decrease his debt-to-income ratio the same no matter where it's put. Sooo, why not pay down the ones that have the most negative effect on his credit rating (the ones closest to the limit) first?
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I sayI'm always curious where the information in regards to a high credit score comes from.
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It's not some big secret/conspiracy. The way it is calculated is common knowledge and available all over the net. Obviously paying down debt in general trumps all, but paying off and closing an account that you have had for a long time negatively effects your average account history (which is just one piece of the pie of how your score is calculated).
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It seems that there are so many urban legends as to how to maximize your credit score, and they all require being in debt and extensively utilizing debt.
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You aren't getting it. The ways to maintain/salvage your credit score mentioned pertain to those WHO ARE CARRYING DEBT, and actually use credit (revolving, installment loans, etc.). Off course you will have a high(er) FICO if your debt-to-income ratio is nil.
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I've never carried a balance and never had a car loan in my name, my first debt was a mortgage. I didn't even have a credit card until I got married. My credit score is nearly 800, good enough to get a loan anywhere I want. My wife has never carried a balance on her one credit card, had one car loan that we paid off early, and a mortgage that was also paid off early when we sold the house. Her credit score is about 825...
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Do you want a cookie or a gold star? All meaningless and irrelevant to the topic at hand.