Pay £3k and clear one card or £1k on 3?

ftm2009

I am in a position to clear £3k off my CC's, I have 3 at the moment, £3k, £2k & £2k.

Would I be better off paying one off or £1k of each?

All cards are up to their limits and my credit score is suffering because of this, I was thinking making all 3 not up to the limit would look more favourable with regards to my score.

Any advice greatly appreciated.

horsechestnut

Pay off the one with the highest interest rate first. If that is one of the £2k ones, then pay the remaining money off the next highest.

ftm2009

horsechestnut wrote: »

Pay off the one with the highest interest rate first. If that is one of the £2k ones, then pay the remaining money off the next highest.

I realise that makes most sense financially but I was more concerned about repairing my credit score.
Really I guess I should pay it off my Yes Secure loan...

chanz4

credit score does not make any difference

ftm2009

chanz4 wrote: »

credit score does not make any difference

Can you explain please?

jd87

ftm2009 wrote: »

Can you explain please?

Look at his/her forum signature. I think s/he thinks you are talking about your actual experian credit score (the thing you pay £7 just to see a number pop up on screen). The rest of us know that you are talking about your credit profile generally.

Really I think the most important thing is total debt and total available credit, it doesn't matter if you are at limit on two cards, as long as you have paid off another. So yes, just pay off the highest interest.

ftm2009

jd87 wrote: »

Look at his/her forum signature. I think s/he thinks you are talking about your actual experian credit score (the thing you pay £7 just to see a number pop up on screen). The rest of us know that you are talking about your credit profile generally.

Really I think the most important thing is total debt and total available credit, it doesn't matter if you are at limit on two cards, as long as you have paid off another. So yes, just pay off the highest interest.

Thank you. :beer:

brightonman123

hit the one with highest interest one, or at least pay one off completely!

RexBanner

Might be worth ringing round all 3 and asking what rate they'd offer you for balance transfers if you cleared the card. As well as clearing it, you'd then be able to transfer one of the others on a promotional rate.

It's likely that the card with teh lowest interest rate might offer you the lowest balance transfer rate, so this might be the one to pay off 1st then transfer your highest rate one to it when it's empty.

It may be possible to do pay off 1 balance then transfer 2 so they're both on a better rate.