Advice welcomed on how to pay down my CC util and get some CLI

[Anonymous]

So I am finally able to start paying down my CC and get debt free. At the same time, I am also trying to bump my scores up to prime so I can refi and remodel my home and sell it. I am planning to call chase for a CLI and lower my APR since I just PIF. I was thinking a good way to lower my util is to get some CLI. I have about $4000 to pay down my CC right now. I was thinking of paying off the BoA CC and then ask for a CLI. Just wanted to know what you guys think.

11/11 TU-692, EQ-677, EX-687

US Bank Platinum CC - $12,935/$13,500 - 15% APR
US Bank checking reserve line - $0/$800 - 22% APR
Bank of America Gold CC - $3,571/$4,000 - 10% APR
Chase Platinum CC - $0/$400 - 24% APR

1 Mortgage
1 HELOC

[Boswd]

Yeah I would pay off the BoA one first and then go into full blown UsBank Plat.   I would roll over the amount of money you have been paying BoA before you got the $4,000 and add that to the amount you have been paying UsBank and of course more if you can afford to you.

[Anonymous]

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@Boswd wrote:

Yeah I would pay off the BoA one first and then go into full blown UsBank Plat. I would roll over the amount of money you have been paying BoA before you got the $4,000 and add that to the amount you have been paying UsBank and of course more if you can afford to you.

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You are absolutely right. Thanks for that roll over tip.
I think I don't have enough CL or revolvings. After I pay off the BoA I will have only 50% of my accounts with a balance. Hopefully that will help. How does fico like it?

[MeganML84]

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Boswd wrote:

Yeah I would pay off the BoA one first and then go into full blown UsBank Plat.   I would roll over the amount of money you have been paying BoA before you got the $4,000 and add that to the amount you have been paying UsBank and of course more if you can afford to you.

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I disagree.

I would pay the USBank with the 4K and keep working on that one until you get it at least halfway down. 15% is ALOT to be paying when prime is only 7.5 Since both are the cards are basically maxed you will not really see a difference in your score until they are both paid down but IMO, if a creditor does a manual review it would look better to owe less on your highest limit...just a thought.

Anyone will tell you to pay off the higher interest cards first, don't just transfer the balances around--that certainly wont help your score.

GL!

[Anonymous]

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@MeganML84 wrote:

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@Boswd wrote:

Yeah I would pay off the BoA one first and then go into full blown UsBank Plat. I would roll over the amount of money you have been paying BoA before you got the $4,000 and add that to the amount you have been paying UsBank and of course more if you can afford to you.

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I disagree.

I would pay the USBank with the 4K and keep working on that one until you get it at least halfway down. 15% is ALOT to be paying when prime is only 7.5 Since both are the cards are basically maxed you will not really see a difference in your score until they are both paid down but IMO, if a creditor does a manual review it would look better to owe less on your highest limit...just a thought.

Anyone will tell you to pay off the higher interest cards first, don't just transfer the balances around--that certainly wont help your score.

GL!

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Thanks for the input. I will take it into consideration but I would like to ask for a CLI after I pay the BofA in full. Also I will have $2000 extra each month to pay of my CC in the upcoming months. Once my fico scores hit above 720 I will refi and pay the rest of my CC off.
Can anybody tell me for certain if BofA CC pull credit report for CLI?
Anymore inputs or strategies would be appreciated.

[Anonymous]

How long have you had the accounts? Pay more than minimum? Ask BOA if you qualify for a fixed balance transfer rate. Have you asked for a reduction in APR? I would start there. Might try credit union for help.

[Anonymous]

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@Anonymous wrote:
How long have you had the accounts? Pay more than minimum? Ask BOA if you qualify for a fixed balance transfer rate. Have you asked for a reduction in APR? I would start there. Might try credit union for help.

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US Bank Platinum CC - $12,935/$13,500 - 15% APR - 2 years old
US Bank checking reserve line - $0/$800 - 22% APR - 3 years old
Bank of America Gold CC - $3,571/$4,000 - 10% APR - 4 years old
Chase Platinum CC - $0/$400 - 24% APR - 1 years old

I usually pay over the minimum.
Just started into the apr thing. Called chase yesterday to lower my apr but they offered me and I accepted the perfectcard rewards and told me to call in a month to lower my apr.
Is it wise to move debt around like that?
A personal loan from a CU sounds like a good idea though. It would be like adding a car load which I think FICO likes. Don't know anything about CU but I will read all I can about it now. Thanks.

[haulingthescoreup]

Moving debt around does help initially, but if all you do is keep increasing CL's (with additional revolving credit lines and/or CLI's on existing cards), it won't take CCC's long at all to see what you're up to. They don't seem to object to a loan (which is non-revolving), though. But at some point, they're definitely going to want to see your total credit balance coming briskly down.

[Anonymous]

What's your timeframe to refi, remodel and sell?

I'm moving around debt to chase APRs and it keeps setting off my ScoreWatch alerts, kind of like cooking bacon and setting off the smoke alarm. When I started to buckle down, it took one month of aggressive actions to trigger the first CC promo rate. Several more came in after the 2nd month.

Think about your risk level...

a) you can use your $4K, pay down the BoA, when you ask for a CL, ask for a promo rate offer too! - more risky

b) you can use your $4K, pay down the higher US Bank APR - less risky

How long do you think it'll take you to pay down? More than 6 mos? The rough difference between paying down a) vs b) comes out to about $17/mo.

So to do b), you save $17/mo right off the bat plus improve your util (based on a rough calculation of $4K at 10% vs 15%). Pretty much a guarantee, right?

Now if you apply that $4K towards 10% and get a couple of big IF's:
* in CL - every add'l $1K you can BT from 15% to 10% saves you +~$4/mo on top of the $17/mo. To put into perspective, this would be an add'l 24% savings (4/17)

* promo APR - every -1% APR reduction for $4K saves you roughly $3/mo. This would be an add'l 17.6% savings (3/17)

So your current debt is at $16,506, a $4K payment reduces that to $12,506, I calculate a total $18,700 CL. Based on these numbers, util goes from 88% to 67%, good enough to start getting offers from your current CCC as long as your accounts are in good standing.

And if you don't get offers, you don't lose much since you can BT close to $4K from US Bank back to BoA.

Just my rough impressions...

[Anonymous]

Bank of America will pull a soft for a credit limit increase

Chase Will pull a hard not always a good choice