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Showerthought: My credit union told me to pay down my smallest card first and my score dropped 22 points
Everyone online swears by the snowball method, so 4 months ago I put every spare dollar toward a $600 card balance while only paying the minimums on my bigger cards. I paid it off in 6 weeks, felt great, then checked my score and it had dropped 22 points because my only card with a balance suddenly jumped to 85% of its limit. Turns out paying off the small one first just made my bigger card look maxed out in the eyes of the scoring model. Now I'm wondering if the avalanche method (highest interest first) would have saved me the headache and the score hit. Has anyone else gotten burned by following the snowball advice while trying to fix their credit for a mortgage?
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