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Regular Contributor
mrlimo
Posts: 153
Registered: ‎12-04-2007
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Re: Any tips for paying down credit card balances?

"Woopah!!!" is also in "A scent of a woman" with Al Pichino
Contributor
smoothjk
Posts: 140
Registered: ‎06-17-2008
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Re: Any tips for paying down credit card balances?

If lowering my util and getting at least one of my baddies removed raises me to 700+, I would definitely try to hunt for a balance transfer deal. I'm just stuck in that snowball effect of when things get bad, they get worse. CC deals have altogether stopped coming to my door ... would be nice to have more credit to work with, and also lower my total util %.

In a few months, though, I think things are going to start looking up. And I've stopped using my credit cards completely for about a year now.

My goal is to have my total util % to under 30% after a year, and after two years (when I should be getting married), having 0 or less than 9% util.

The 24-month plan sounds good to me :smileyhappy: I think I'll allocate a little more money to the BofA for now as you suggested, unless they agree to lower my rate.
FICO (06/17/08): TU 691 - EQ 642 - EX 638 - Util 64%
FICO (07/23/08): TU 698 - EQ 653 - EX 644 - Util 50%
FICO (02/04/09): TU 694 - EQ 668 - EX 654 - Util 43%
FICO (05/18/09): TU 687 - EQ 675 - EX n/a - Util 39%
FICO (03/09/10): TU 666 - EQ: 691 - EX 644 - Util 54%
IDGuard (2/8/12): TU 690 - EQ: 710 - EX 710 - Util 72%
FICO (03/13/12): EQ: 696 (87% revolving to limits)
Regular Contributor
mrlimo
Posts: 153
Registered: ‎12-04-2007
0

Re: Any tips for paying down credit card balances?

I see on your signature line you have a $48 collection? Is this a paid collection or still outstanding? If it is unpaid try sending a PFD letter could not hurt. If it is paid you will have to send a GW on it. IMO bringing your UTIL% under 49% probably should be enough to propel you into the 700 range without success of any of your GW's.
Contributor
smoothjk
Posts: 140
Registered: ‎06-17-2008
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Re: Any tips for paying down credit card balances?

The collection is paid, but unfortunately, I didn't know to do a PFD =(

It was at one collection agency (Hilco), then transferred to another one (Aargon). The lady on the phone, at Aargon, said "it shouldn't be a problem to get this removed." But when I got the letter, I received only stated that I paid. I wrote Hilco a GW letter, and am waiting to hear back. I heard not to speak to them on the phone, so I'm avoiding doing that for now.

If getting my util to 49% will bump my score that much, then I'm definitely going to make that my top priority. I didn't realize there was such a big jump if you got it under/over 50%.
FICO (06/17/08): TU 691 - EQ 642 - EX 638 - Util 64%
FICO (07/23/08): TU 698 - EQ 653 - EX 644 - Util 50%
FICO (02/04/09): TU 694 - EQ 668 - EX 654 - Util 43%
FICO (05/18/09): TU 687 - EQ 675 - EX n/a - Util 39%
FICO (03/09/10): TU 666 - EQ: 691 - EX 644 - Util 54%
IDGuard (2/8/12): TU 690 - EQ: 710 - EX 710 - Util 72%
FICO (03/13/12): EQ: 696 (87% revolving to limits)
Regular Contributor
mrlimo
Posts: 153
Registered: ‎12-04-2007
0

Re: Any tips for paying down credit card balances?

it is a jump in fico every 10% it seems...
 
>49% - 50% from what I have read is a big jump
>19%
and
>9% is the optimal fico wise even more then haveing 0%
 
You are a beter credit risk at say 1% then you are at 0%.
1% shows you use your credit wisely and know how to use it
0% shows that you have credit but may be affraid to use credit and don't know how to use it properly.
 
Contributor
smoothjk
Posts: 140
Registered: ‎06-17-2008
0

Re: Any tips for paying down credit card balances?

Gonna have to find $3K or so to get me under that 50% threshold. Should take a few months, but I can't wait to see the results!
FICO (06/17/08): TU 691 - EQ 642 - EX 638 - Util 64%
FICO (07/23/08): TU 698 - EQ 653 - EX 644 - Util 50%
FICO (02/04/09): TU 694 - EQ 668 - EX 654 - Util 43%
FICO (05/18/09): TU 687 - EQ 675 - EX n/a - Util 39%
FICO (03/09/10): TU 666 - EQ: 691 - EX 644 - Util 54%
IDGuard (2/8/12): TU 690 - EQ: 710 - EX 710 - Util 72%
FICO (03/13/12): EQ: 696 (87% revolving to limits)
Epic Contributor
Creditaddict
Posts: 20,906
Registered: ‎10-23-2007
0

Re: Any tips for paying down credit card balances?

www.whatsthecost.com is a great calculator for paying down credit card balances the fastest and best way to save the most money
Fico Scores: EQ- 682 DCU, TU 696 Walmart, EX 695 NASA(10-6-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
63 Cards and Counting :smileytongue:
Established Contributor
woopah
Posts: 721
Registered: ‎03-15-2008
0

Re: Any tips for paying down credit card balances?



smoothjk wrote:
I've actually written them a GW letter already, asking that they remove those baddies. We'll see how that goes. If unsuccessful after a couple tries, I'll probably just ask about the APR reduction. Those two late payments out of 8 years of on-time payments shouldn't be penalized so harshly, IMHO. About 3.3K of the balance is the promotional 1.9% APR, while $6.7K of it is the 24.99%.

I only thought you were a Friends fan because of your username, "Woopah." That's the sound Chandler makes when imitating a whip sound haha.




Nope, part of the name comes from the Sims and part is just a variation on a name that I thought sounded interesting. Course this was like a long time ago, and I don't even remember that name.

I've never written a GW letter, so I'm not sure, but if it works and they remove the lates, does that automatically lower your Interest rate? Because if not, you may still need to talk with them about lowering it.

Still agree with paying down BoA and keeping the minimum on Cap1. The other thing is, as you pay on Cap1 your minimum with them should start going down. Don't lower your payment with them as the min goes down though, keep it at $57. That way while you're focusing most of your money on BoA, you can continue to make progress with Cap1 at the same time.
4/16/09: TU: 775, EQ: 805
2/11/09: TU: 773, EQ: 790, EX:790
11/16/08: TU: 773, EQ: 785, EX: 780
Goals for 2009: 0 Credit Card Debt & 0% Util (achieved 2/6/09), Mortgage! (achieved 11/2/09), getting closer to 800 scores (I crossed this earlier this year, but I'm sure I'm not there anymore!)
Regular Contributor
mrlimo
Posts: 153
Registered: ‎12-04-2007
0

Re: Any tips for paying down credit card balances?



woopah wrote:


smoothjk wrote:
I've actually written them a GW letter already, asking that they remove those baddies. We'll see how that goes. If unsuccessful after a couple tries, I'll probably just ask about the APR reduction. Those two late payments out of 8 years of on-time payments shouldn't be penalized so harshly, IMHO. About 3.3K of the balance is the promotional 1.9% APR, while $6.7K of it is the 24.99%.

I only thought you were a Friends fan because of your username, "Woopah." That's the sound Chandler makes when imitating a whip sound haha.




Nope, part of the name comes from the Sims and part is just a variation on a name that I thought sounded interesting. Course this was like a long time ago, and I don't even remember that name.

I've never written a GW letter, so I'm not sure, but if it works and they remove the lates, does that automatically lower your Interest rate? Because if not, you may still need to talk with them about lowering it.

Still agree with paying down BoA and keeping the minimum on Cap1. The other thing is, as you pay on Cap1 your minimum with them should start going down. Don't lower your payment with them as the min goes down though, keep it at $57. That way while you're focusing most of your money on BoA, you can continue to make progress with Cap1 at the same time.

 I would have to disagree with you there Woopah. As your minimum goes down with capital one I would alocate the few dollars towards your BOA. if say your minimum goes from $57 down to $53 I would continue paying the $53 (minimum) on the Cap 1 and reallocate that $4 towards your BOA. I would rather pay 17% on that $4.00 then I would 24.99% on the same money. The thing you should not do is if minimum goes to $53. is take the $4.00 and pocket it. Snowball effect will only work if you maintain the set alloted cash towards your debt ($500 that you said) minimum on cap1 and all the remaining towards BOA. That cap1 ballance will be paid in no time once you get the BOA paid off and realocate the money you were paying towards your BOA to your Capital 1. If at anytime you have extra to throw at it. It is always good. Just keep enough liquid in case of an emergecy. In an extreme emergency you can always charge something but only in an extreme emergency. In a bank account drawing interest even your only makeing maybe 2-3% where your paying out 17 - 25% so any cash laying in a savings account your loss is 15-22% difference.
Contributor
smoothjk
Posts: 140
Registered: ‎06-17-2008
0

Re: Any tips for paying down credit card balances?

Wow, this "snowballing" concept seems so simple, but it's so profound at the same time.

Thanks for the advice, guys, and that whatsthecost website is awesome!! That just totally made my day =) Feeling a glimmer of hope now.
FICO (06/17/08): TU 691 - EQ 642 - EX 638 - Util 64%
FICO (07/23/08): TU 698 - EQ 653 - EX 644 - Util 50%
FICO (02/04/09): TU 694 - EQ 668 - EX 654 - Util 43%
FICO (05/18/09): TU 687 - EQ 675 - EX n/a - Util 39%
FICO (03/09/10): TU 666 - EQ: 691 - EX 644 - Util 54%
IDGuard (2/8/12): TU 690 - EQ: 710 - EX 710 - Util 72%
FICO (03/13/12): EQ: 696 (87% revolving to limits)

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