Paying off credits cards and credit score

Mikeef

I have 4 credit cards all with varying balances and limits and apr's. I have received a lump sum which I want to use to pay off some of the credit card balances. Its not enough to clear all of them although I could pay off 2 of them completely and leave 2 still with large balances. I've read that your credit score relating to credit cards is all about utilisation so what would be better...
1) Pay off 2 credit cards in total but that will leave 2 with around 85% utilisation. The 2 I would pay off both have the highest apr% out of the 4.
or
2) Pay some off each which with leave me with 2 cards with 50% utilisation and 2 cards with 70% utilisation.
I'm guessing it won't make any difference but thought I would ask the question.

Many thanks
Mikee

[Deleted User]

Pay off the debts with the highest APRs.

It will enable you to more quickly lower your debt.  

PRAISETHESUN

It won't make a difference. Focus on what will save you the most money. Throw any excess cash at your cards in the order of highest APR first. This will then leave you with more money in the long term to throw at the actual debt, rather than just servicing interest repayments.

cymruchris

Definitely the highest APR first - save your money before working on whether utilisation affects anything.

Ebe_Scrooge

As per all of the above - the cards with the highest APR are costing you most in interest (which is effectively wasted money), so pay those off first.  Then use the money you would have been paying every month to those (in addition to what you're already paying), to pay down the others more quickly - again, focussing on the highest APR card first.  Ignore your credit score, it means diddly-squat to anyone except the CRAs.  Credit utilisation does have a bearing on your overall credit-worthiness - but you've already got four cards all with outstanding debt on them, so you're not going to want to be applying for any further credit anytime soon, are you ?

phillw

Ebe_Scrooge said:

Credit utilisation does have a bearing on your overall credit-worthiness

Don't lenders calculate it across all cards though, not individually? I can't imagine any of them thinking "well, we would have lent to him if only he'd used the secret method of paying off all his cards equally, even though this would have meant he'd pay more interest in the long run".

onlyfoolsandparking

phillw said:

Ebe_Scrooge said:

Credit utilisation does have a bearing on your overall credit-worthiness

Don't lenders calculate it across all cards though, not individually? I can't imagine any of them thinking "well, we would have lent to him if only he'd used the secret method of paying off all his cards equally, even though this would have meant he'd pay more interest in the long run".

I do wonder the same thing, I have a number of cards all on 0% deals (I only use cards for cheap way of financing big purchases) all bar 1 are around 20% utilization and that particular 1 is a Tesco card with a p**s poor limit of £2750 and I'm into it for around £2200 currently. Although it's on a 0% deal till April 21 I'm pondering whether to shift it onto one of my 'empty' cards which would make the utilization around 13% on that amount OR am I overthinking it? 

I know my pondering runs a little deeper than the standard 'keep utilization around or under 20-30% rule but just wondered what others think?, I'm not particularly worried or even interested in impact on imaginary score but I like regular good offers and anything I can do to keep getting these is worthwhile IMO, I think there may be some mileage in what @philw is saying.