topic Re: What should I pay off in Rebuilding Your Credit

What should I pay off

ldohve — Fri, 25 Jan 2013 02:32:38 GMT

We are trying to get my husbands credit score up. We have no past dues. We have a revolving credit, 5 credit cards, a home mortgage, car payment, and a small loan. Most of it has high balances. Right now he is at 586. We need to get it up to 620, so we can apply for a mortgage. What is the best thing to do; pay off a couple credit cards and cancel them or pay down some of the balance on all of them? Any advice would be greatly appreciated! Thank you!

Re: What should I pay off

TrishN — Fri, 25 Jan 2013 02:44:03 GMT

Credit card ! Pay down. Don't close,

Re: What should I pay off

NewbieReed — Fri, 25 Jan 2013 02:57:16 GMT

Cancellling them would hurt u. Just pay them down. U need all cards at 0% except one - leave that one at 9%.

Re: What should I pay off

ldohve — Fri, 25 Jan 2013 03:01:23 GMT

We can not pay all of our credit cards, loans, and revolving credit off. Which is the best to start with? Should we use the money to pay a couple down to zero or speread out the money and pay on them all? Thanks!

Re: What should I pay off

TrishN — Fri, 25 Jan 2013 03:15:08 GMT

Just pay down CC as much as you can

Re: What should I pay off

NewbieReed — Fri, 25 Jan 2013 03:34:28 GMT

ldohve wrote:
We can not pay all of our credit cards, loans, and revolving credit off. Which is the best to start with? Should we use the money to pay a couple down to zero or speread out the money and pay on them all? Thanks!

U want to focus on the revolving credit first, IMO. It factors into ur util. That is the first step. u want ur overall util to be low, so play with the numbers of ur balances/CL to find out what might be best.

Re: What should I pay off

beb86 — Fri, 25 Jan 2013 04:56:11 GMT

I would pay the off smallest balances first so you have cards with a $0 balance then work on the higher balance cards...Also work on CLIs to help utilization which can boost score...If he has any baddies start by disputing inaccurate info then working to GW any paid off baddies...lates, CO, Collections, Etc

Re: What should I pay off

ldohve — Fri, 25 Jan 2013 05:05:46 GMT

What are CLI's? I am sorry I do not know what they are. He does not have anything in collection. He has some medical bills that had gone to collection. Those have been paid off at least 2 years ago. We have asked them to remove them from his report and they said no. his score was in the mid 600's two years ago. But, then we his brother died and we had to travel 12 hours from home. So, we got credit cards to pay for that trip. Therefore, score went down. We have never missed a payment on any of them. Thanks!!

Re: What should I pay off

beb86 — Fri, 25 Jan 2013 05:12:15 GMT

ldohve wrote:
What are CLI's Credit Limit Increases? I am sorry I do not know what they are. He does not have anything in collections It looks like he has med collections. He has some medical bills that had gone to collection. Those have been paid off at least 2 years ago the can be on your report for up to 7 years. We have asked them to remove them from his report and they said no try sending a GW letter to the CA. his score was in the mid 600's two years ago. But, then we his brother died and we had to travel 12 hours from home. So, we got credit cards to pay for that trip. Therefore, score went down. We have never missed a payment on any of them. Thanks!!

Read the GW sticky for examples here

Re: What should I pay off

ldohve — Fri, 25 Jan 2013 05:17:05 GMT

I meant that he does not have any collections that have not been pain. Even though we sent GW letters 2 years ago, can we send them again? Thank u!

Re: What should I pay off

beb86 — Fri, 25 Jan 2013 05:23:48 GMT

ldohve wrote:
I meant that he does not have any collections that have not been pain. Even though we sent GW letters 2 years ago, can we send them again? Thank u!

Sorry this made me LOL.....yeah you kind have to go all out...I mean the thing with GWs are it really all depends on who that person is that reads it....and that may take a few trys....my saying about sending GWs is just throwing a bunch of crap at the wall to see what sticks.....

Re: What should I pay off

NewbieReed — Fri, 25 Jan 2013 21:25:02 GMT

beb86 wrote:
ldohve wrote:
I meant that he does not have any collections that have not been pain. Even though we sent GW letters 2 years ago, can we send them again? Thank u!
Sorry this made me LOL.....yeah you kind have to go all out...I mean the thing with GWs are it really all depends on who that person is that reads it....and that may take a few trys....my saying about sending GWs is just throwing a bunch of crap at the wall to see what sticks.....

+1 made me chuckle!

With our GWs I mustve sent over 20 letters to one company in a 30 day span

Re: What should I pay off

ldohve — Fri, 25 Jan 2013 23:35:40 GMT

Sorry, we r new to all of this. I just did not know if more then one GW letter was ok. Thanks!