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@Leadberry wrote:
@4drules wrote:I have recently been thinking of how to make the best decision for having emergency funds for me and my wife just in case. Reason being is that we are expecting our first child this month and want to have the funds in case of the unexpected. We recently figured that it would be best to pay down one of my credit cards that has a high balance and rely on the available credit for those funds. Well here goes, I have a credit card that has $8,300 credit limit with $8,050 balance and with our tax returns we made a $6,000 payment and literally the next day we get an email stating that the credit limit has been revised and when I checked it my heart sunk. The credit limit had dropped from the original $8,300 when opened to $2,086 right after they recieved the huge payment leaving us with a $36 available credit. I have already beat myself up thinking I screwed up but never thought this could happen, I figured I could drop my debt % ratio dramitically but now this basically made it the same as it was before, it should have went from 56% to 39% but now it would go to only 46%. I mean I feel like I should have just paid off another loan I had which is an installment loan and would have gotten alot extra $ monthly banked instead of only lowering my payments, or even a freaking secured credit card and atleast have that available credit but I just feel blah right now because if I call the company in 30-40 days and ask them to review my account and to reinstate my credit line to a higher one my credit would not allow because the credit limit decrease was literally $5,964 of the $6,000 payment. What are ya'll thought's and have you ever seen this big of a decrease with such a payment. I will add that when I applied for this citi simplicity card my credit was 756 and right this moment is 669.
If a $6,000 payment only drops your util by 17%, are you saying you have over $35,000 in revolving debt, or does that include the installment loans?
Edit: Also, these CLD's will sometimes end in account closure after the balance is fully paid.
Unfortunately I have $19,258 in revolving debt compared to the $34,305 credit limits on them but after this pyment and the credit limit decrease it's not gonna bring it down as much as I thought. I had some cards a few years back when I was in my early 20's and got carried away and now in my mid 20's I bought my first house and got this citi simplicity card right after closing on the house when my credit was at it's peak and the expenses on fixing the house up and repairing things kind of added up quick and put me in this situation I'm in now. I do have to incude that on all my credit burueas that there isn't one single payment that has ever been late but I guess they aren't concerned about that just my debt.
@takeshi74 wrote:
@4drules wrote:I mean I feel like I should have just paid off another loan I had which is an installment loan and would have gotten alot extra $ monthly banked instead of only lowering my payments
Balance chasing sucks but matters would be worse if you maintained high utilization for an even longer time.
Which is exactly how all my other cards have been. The only other card I think matters is my sears card which has a credit limit of $6,500 and balance of over $6,000. I'm currently making payments with interest kicked in right now.
@Pupeitmeister wrote:
But time heals this sort of thing. GREAT NEWS ON THE KIDDO!' Grats!!
Thank You!
@enharu wrote:
Pay off your balances ASAP. The balance chasing is going to continue until your balances reaches 0 and they will most likely close the account.
Then give it a couple of months and then apply for new credit cards.
The OP has over 10k in debt, has been carrying it for at least 2 years, is quite maxed out, has a new house, decided to use a credit card as an emergency fund (when he had 6k in his own money to put towards emergencies) and has a signature that reads "have to stop impulsing buying". I think in this situation applying for new credit will hinder more than help, even if it is in regards to replacing those companies that are balance chasing him.
I really think some people are better off with no more than two cards for emergencies (and when I say emergency, I mean having to rent a car, or something along those lines) and worrying less about their credit score and more about how exactly to budget and save. Just from what the OP has told us I would say he is among those folks. There is nothing wrong with that, but if you can't manage credit cards then it is really best to stop using them and definitely not applying for anymore.
Other than that, my advice is the same: pay off the balance, try to build your own mini emergency fund. For the OP's spending habits I think 2k is a reasonable credit limit.
@barbaralee wrote:
@enharu wrote:
Pay off your balances ASAP. The balance chasing is going to continue until your balances reaches 0 and they will most likely close the account.
Then give it a couple of months and then apply for new credit cards.The OP has over 10k in debt, has been carrying it for at least 2 years, is quite maxed out, has a new house, decided to use a credit card as an emergency fund (when he had 6k in his own money to put towards emergencies) and has a signature that reads "have to stop impulsing buying". I think in this situation applying for new credit will hinder more than help, even if it is in regards to replacing those companies that are balance chasing him.
I really think some people are better off with no more than two cards for emergencies (and when I say emergency, I mean having to rent a car, or something along those lines) and worrying less about their credit score and more about how exactly to budget and save. Just from what the OP has told us I would say he is among those folks. There is nothing wrong with that, but if you can't manage credit cards then it is really best to stop using them and definitely not applying for anymore.
Other than that, my advice is the same: pay off the balance, try to build your own mini emergency fund. For the OP's spending habits I think 2k is a reasonable credit limit.
I agree with what you are saying. I don't mean to tell him to go on a spree and get 4-5 cards.
What I was trying to say was basically what you are saying. He needs to get a few cards for some emergency funding at least. Many unexpected expenses can happen when there's a baby, and those expenses cannot be scrimped on either.
@barbaralee wrote:
@enharu wrote:
Pay off your balances ASAP. The balance chasing is going to continue until your balances reaches 0 and they will most likely close the account.
Then give it a couple of months and then apply for new credit cards.The OP has over 10k in debt, has been carrying it for at least 2 years, is quite maxed out, has a new house, decided to use a credit card as an emergency fund (when he had 6k in his own money to put towards emergencies) and has a signature that reads "have to stop impulsing buying". I think in this situation applying for new credit will hinder more than help, even if it is in regards to replacing those companies that are balance chasing him.
I really think some people are better off with no more than two cards for emergencies (and when I say emergency, I mean having to rent a car, or something along those lines) and worrying less about their credit score and more about how exactly to budget and save. Just from what the OP has told us I would say he is among those folks. There is nothing wrong with that, but if you can't manage credit cards then it is really best to stop using them and definitely not applying for anymore.
Other than that, my advice is the same: pay off the balance, try to build your own mini emergency fund. For the OP's spending habits I think 2k is a reasonable credit limit.
YES, truth be told I have had the urge of implulse buying in the past and that has stuck me with this debt, but I have more self disipline than before but that isn't going to make my debt dissapear. I'm stuck with debt from my past decision's and now have a different mindset and clearer vision since getting married and buying a house and now a baby. My signature merely is motivation for me everytime I see it.
Here is one of my option's I've been thinking. I've been wanting to achieve over an 800 credit score but now this happened I feel like I should just sell everything I absolutely do not need and pay off all my debt's starting with all the revolving and try living off of cash and not charges but will be wondering what impact that will have on my score and how long it will take to raise it back up.
Sorry that happened to you at such a crucial time. You can sometimes avoid being balance chased if you pay around 10% per month steadily. Do that on all of your accounts and your internal repayment rating will improve.
Congrats on the new family member!
Chin Up! You WILL fix this!
SG