Best way to pay off CC Balance(s)

ladybuglbd · ‎01-01-2014

I have 2 Credit Cards both wth large balances:

Citi Preferred: 22k

Chase Slate: 7k

I can afford the minimum balances but the Citi card raised my rate (no lates at all) to 29.99%. The cost to pay it off is enormous.

I have very high FICO scores (760+) and income to support a good cc app with a bt, but the balance is so high I can't imagine I can xfer it all.

What is a recommended course of action to make the payoff plan the cheapest? It is preferable to me to pay it off over 18-24 months versus faster.

user5387 · ‎01-01-2014

I'd consider other options, including Lending Club, NFCU, PSECU, local and national CUs.

longtimelurker · ‎01-01-2014

So Citi imposed a penalty rate without lates? Did they give a reason?

The cheapest way assuming no balance transfer or credit line from elsewhere is to pay off the highest interest (hopefully Citi) as much as can and pay the minimum on the other.

ladybuglbd · ‎01-01-2014

Correct, it was about a year ago or so and I've just been paying midlessly since. They had no reason I can think of, I have zero lates in general, and with them.

I don't need my score for anything in the next year or so, so would an app spree for a couple cross-bank BT cards be wise? Surely it would save cash over 18 months? If so, what are the cards?

It seems citi has a great BT card, but why wold they let me xfer to it?

So... Discover IT? Cap1? What other CC companies have good BT cards?

longtimelurker · ‎01-01-2014

@ladybuglbd wrote:
Correct, it was about a year ago or so and I've just been paying midlessly since. They had no reason I can think of, I have zero lates in general, and with them.

I don't need my score for anything in the next year or so, so would an app spree for a couple cross-bank BT cards be wise? Surely it would save cash over 18 months? If so, what are the cards?

It seems citi has a great BT card, but why wold they let me xfer to it?

So... Discover IT? Cap1? What other CC companies have good BT cards?

There are a lot of cards with 0% APR for a limited time, which would save money, although many of the charge a % of the balance being transferred. As you say, Citi has a great one, another popular choice is Chase Slate. But with your high balances you would need to check your scores to see if they are OK. It's probably too late, but I would also ask Citi why they imposed the penalty rate. If it is a mistake, that would be good. And if not, at least you will know what to avoid in the future..

FinStar · ‎01-01-2014

@ladybuglbd wrote:
Correct, it was about a year ago or so and I've just been paying midlessly since. They had no reason I can think of, I have zero lates in general, and with them.

I don't need my score for anything in the next year or so, so would an app spree for a couple cross-bank BT cards be wise? Surely it would save cash over 18 months? If so, what are the cards?

It seems citi has a great BT card, but why wold they let me xfer to it?

So... Discover IT? Cap1? What other CC companies have good BT cards?

Lenders impose a penalty rate for a reason, and are required to disclose it. Somehow your account was imposed this penalty as a result. Citi will likely not approve for another card due to having a penalty rate on your current account. Even if they approved one, the limit will be very low and you cannot transfer balances (via BTs) between Citi accounts.

Getting a high CL would really depend on how lenders view your current utilization (as one of many factors), not just your scores.

Stralem · ‎01-01-2014

Bank of America's Better Balance Rewards is looks like a nice BT card. They pay you for actually carrying and paying down a balance.

I Have Way Too Many of These.

American Express - No CLI or Appreciation Gift in 7 Years

Citibank - Handing Out Credit Limits Like Candy

Chase - Surprisingly, Still Tolerating My Credit-Chasing Ways

Bank of America - My Newest Bae.

Everyone Else.

dap1984va · ‎01-01-2014

I would also vote against Citi, I highly doubt they will give a high balance if you already owe them a pretty high amount its like getting bit on the left hand and offering the right hand. Capital One??? that was funny. If you had a 650 you could get a Capital One (literally) , I would suggest it for building/re-building credit. I have a few cards over 10K, First would be USAA and second NF if you meet the criteria. Discover is great also, personally I have had the card less than 6 months and its at 9K, with a soft pull. My credit score says I am a "very low risk" and your score is better than mine. So YES I would suggest Discover

longtimelurker · ‎01-01-2014

@dap1984va wrote:
I would also vote against Citi, I highly doubt they will give a high balance if you already owe them a pretty high amount its like getting bit on the left hand and offering the right hand. Capital One??? that was funny. If you had a 650 you could get a Capital One (literally) , I would suggest it for building/re-building credit. I have a few cards over 10K, First would be USAA and second NF if you meet the criteria. Discover is great also, personally I have had the card less than 6 months and its at 9K, with a soft pull. My credit score says I am a "very low risk" and your score is better than mine. So YES I would suggest Discover

Capital One has some good cards with high credit limits, and some have 0% APR till Dec 2014 or April 2015, so not sure why you think it is so funny!

megaman1 · ‎01-01-2014

@ladybuglbd wrote:
I have 2 Credit Cards both wth large balances:

Citi Preferred: 22k
Chase Slate: 7k

I can afford the minimum balances but the Citi card raised my rate (no lates at all) to 29.99%. The cost to pay it off is enormous.

I have very high FICO scores (760+) and income to support a good cc app with a bt, but the balance is so high I can't imagine I can xfer it all.

What is a recommended course of action to make the payoff plan the cheapest? It is preferable to me to pay it off over 18-24 months versus faster.

What'd you charge 22K for? Just curious.