Best way to pay off balances?

Jellyfish9

Hi,

I have £1000 to pay off some of my debt. Both interest rates are the same on these cards.

I was going to pay Card A in full. But would it be better to reduce my utilisation of credit on both cards or does that not matter? Maybe £250 on Card A and £750 on Card B?

Card A £950 limit £1000
Card B £3550 limit £3600

Thanks

YorkshireBoy

I'd suggest paying £500 off each, as you're maxed out on both...or maybe as you say £250/750.

However, and assuming both are interest bearing, if settling card A in full would prompt an existing customer 0% offer then maybe consider that?

Jellyfish9

Called them, no offers. Prob going to go for the 250/750 split then. I guess almost maxing out on a card wont be good credit wise.

YorkshireBoy

Jellyfish9 wrote: »

Called them, no offers.

You've misunderstood. There are no offers now because you haven't got any headroom!

Offers will depend on how you've managed the account, the provider, and your credit file in general...and of course having a zero balance when you ask!

Jellyfish9

Oh, I just phoned them and said if I pay my balance in full will I be able to get a balance transfer offer. She checked an said no.

blitzboy

Who are 'card a' and 'card b' with?


Most companies would offer a 0% deal if your account was cleared, especially if you phone to cancel the card.


If card a really won't offer one then perhaps you could pay the full 1000 on card b and then get a 0% offer on card b to move card a balance across? The card doesn't always need to be completely clear to get an offer.


It would be easier to tell if this is likely if you name the providers.


Also, if you are paying interest, have you used the MSE credit club on here to see if you'd be likely to be accepted for a new 0% card?

Anthorn

Jellyfish9 wrote: »

Hi,

I have £1000 to pay off some of my debt. Both interest rates are the same on these cards.

I was going to pay Card A in full. But would it be better to reduce my utilisation of credit on both cards or does that not matter? Maybe £250 on Card A and £750 on Card B?

Card A £950 limit £1000
Card B £3550 limit £3600

Thanks

As with blitzboy's post, the other way is to consolidate both balances onto a balance transfer card and depending on the limit of the new BT card reduce the overall utilisation that way. The new BT card could also give you a breather with regard to interest if it's a 0% interest card.