Reply
Regular Contributor
mgs2010
Posts: 185
Registered: ‎07-26-2009
0

Credit card advice--please help me!

I have too many credit cards and too many balances, but for some reason a pretty decent score (692 EQ, 688 TU)

 

I owe:                                          Limit:                        Interest Rate:

 

 

Bank of America 6,500                     7,200                    0% until Oct 2009, then 14.9V

 

Citi Cards           1,800                    18,000                   2.99 until May 2010, then 7.24 V

 

Chase                     ZERO               10,0000                currently 6.24 V

 

Chase Freedom       ZERO               14,500                  currently 7.24 V

 

Discover               1,100                    3,100                   1.9 until November 2009, then 14.9 V

 

HSBC MC            1,600                    3,500                    0% until October 2009, then 11.9 V

 

Capital One         1,500                     7,500                    1.99 for LIFE (i've been paying on this one for 2yrs now)

 

 

I'm only 21 years old and i'm really scared for what the next few months is going to do to my budget, I make about 40k/year never had any lates on anything and I am VERY on top of things when it comes to paying my bills and  just want some advice on what to do///how to consolidate these

 

Are there any credit cards out there that I would qualify for with a BT promotional offer for 0% or something close to it? Also, are my credit lines decent enough and my ratios decent enough to qualify for a new card or will I be turned down becuase I have too much credit?

Valued Contributor
wmarat
Posts: 1,754
Registered: ‎11-03-2007
0

Re: Credit card advice--please help me!

https://www.wachovia.com/foundation/v/index.jsp?vgnextoid=543ffbfaba0aa110VgnVCM1000004b0d1872RCRD

 

https://www.citicards.com/cards/acq/Apply.do?ProspectID=A9EEF5418B3D404BA88EE1023C3A8BF7&sc=SDNSI2A8&m=58514M8YL0W&B=M&app=UNSOL&langId=EN&siteId=CB&screenID=3000

 

 http://www.cardpartner.com/

IN VINO VERITAS.
Senior Contributor
smallfry
Posts: 4,831
Registered: ‎04-20-2007
0

Re: Credit card advice--please help me!

You could get your score up by paying all the cards down under 9% of their respective credit limits. You aren't in trouble yet but that is the direction you are heading. Could you pay off the BofA like tomorrow w/o depleting your savings? 
Regular Contributor
mgs2010
Posts: 185
Registered: ‎07-26-2009
0

Re: Credit card advice--please help me!

I am not able to pay it off without depleting my small savings, I was thinking about a loan from my 401k but that just seems stupid to do for a credit card no matter what the interest rate is. I am determined to get it paid and I will be making large payments on it of about 500 per month, and using a nice bonus check to pay towards it. I think this bank of america card is what i'm most concerned with, the rest I can manage
Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009
0

Re: Credit card advice--please help me!

Your overall utilization isn't TOO bad at 20% (12,500/63800). It's your BoA that's really hurting you @ 90%. Your next highest individual util is HSBC @ 46%. My first bit of advice is to stop using any CC until you get all this under control.

 

There are differing opinions whether it's wiser to put all efforts into bringing down the balance of the account with the highest interest or bring the smallest balances to below 9% util to help the score rise faster. I can see the merits of both approaches. You could put all your immediate efforts to reducing (eliminating) as quickly as possible the debt on the Discover and HSBC cards. That would be the fastest way to help your score because FICO looks not only at overall util but individual CC usage. Also you would get a help on your score by having less of your open accounts reporting a balance.

 

To save the most money though you could concentrate on the BoA account and put every extra penny towards it while paying just the monthly minimums on everything else. The choice comes down to what is more important to you-saving money by paying less interest or getting a faster FICO rise by reducing the number of accounts with balances.

 

Are you completely confused??? I am.

 

 

(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783

 

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

 

 

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Credit card advice--please help me!


mgs2010 wrote:

I have too many credit cards and too many balances, but for some reason a pretty decent score (692 EQ, 688 TU)

 

I owe:                                          Limit:                        Interest Rate:

 

 

Bank of America 6,500                     7,200                    0% until Oct 2009, then 14.9V

 

Citi Cards           1,800                    18,000                   2.99 until May 2010, then 7.24 V

 

Chase                     ZERO               10,0000                currently 6.24 V

 

Chase Freedom       ZERO               14,500                  currently 7.24 V

 

Discover               1,100                    3,100                   1.9 until November 2009, then 14.9 V

 

HSBC MC            1,600                    3,500                    0% until October 2009, then 11.9 V

 

Capital One         1,500                     7,500                    1.99 for LIFE (i've been paying on this one for 2yrs now)

 

 

I'm only 21 years old and i'm really scared for what the next few months is going to do to my budget, I make about 40k/year never had any lates on anything and I am VERY on top of things when it comes to paying my bills and  just want some advice on what to do///how to consolidate these

 

Are there any credit cards out there that I would qualify for with a BT promotional offer for 0% or something close to it? Also, are my credit lines decent enough and my ratios decent enough to qualify for a new card or will I be turned down becuase I have too much credit?


 

Do you have other debt (like student loans) on top of this - or is this it? If you have installment loans how many SL TL's are you reporting?
Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
0

Re: Credit card advice--please help me!

[ Edited ]

mgs2010 wrote:

I have too many credit cards and too many balances, but for some reason a pretty decent score (692 EQ, 688 TU)

 

I owe:                                          Limit:                        Interest Rate:

 

 

Bank of America 6,500                     7,200                    0% until Oct 2009, then 14.9V

 

Citi Cards           1,800                    18,000                   2.99 until May 2010, then 7.24 V

 

Chase                     ZERO               10,0000                currently 6.24 V

 

Chase Freedom       ZERO               14,500                  currently 7.24 V

 

Discover               1,100                    3,100                   1.9 until November 2009, then 14.9 V

 

HSBC MC            1,600                    3,500                    0% until October 2009, then 11.9 V

 

Capital One         1,500                     7,500                    1.99 for LIFE (i've been paying on this one for 2yrs now)

 

 

I'm only 21 years old and i'm really scared for what the next few months is going to do to my budget, I make about 40k/year never had any lates on anything and I am VERY on top of things when it comes to paying my bills and  just want some advice on what to do///how to consolidate these

 

Are there any credit cards out there that I would qualify for with a BT promotional offer for 0% or something close to it? Also, are my credit lines decent enough and my ratios decent enough to qualify for a new card or will I be turned down becuase I have too much credit?


 

Does your Citi provide any BT offers or convenience checks any more?  This is the account you have the most CL on and the next best BT rate.

 

If you moved all of your expiring balances to Citi, this would put a $12,500 balance on an $18,000 CL, which is just under 70%. 

 

THE GOOD:  You reduce the number of balances outstanding from 5 to just 1, which is a FICO positive.  You haven't changed your percentage of total utilization, so that will be neutral.  You also won't really be creating any worse of a "maxed" out card situation, because your current BoA has a percentage of over 90%.  So your total Utilization will stay the same, but your individual card utilization would go from over 90% to under 70% which is a positive.

 

This is, however, dependent on being able to get a good BT rate.  Even if the rate isn't what you would prefer, it probably isn't any worse than the rates that you will be paying once the promos expire.  And as mentioned above, by reducing the number of balances and reducing your highest balance card from 90% to under 70% will improve your odds of getting approved for another (new) card with BT.

 

PSECU:  If you are from PA, do you still have family there?  PSECU only requires that you have a family member who is "eligible" for membership in order for you to joing.  The family member does not have to join.  Also, you may be eligible if you went to one of the qualifying schools.

 

PSECU has a 3.9% BT, no fees, offer which goes till December 2010.  The rate after that is 9.9%.  They have good CL's and they have shown to be easier to qualify for credit than many other places.  So you might check into them.  I suggest the PSL/V which is the LOC and VISA combo account.

 

If none of that pans out, then I would look into putting those balances on your 6 % 7% cards, if you can move the balances at that rate to minimize interest. 

 

Good luck.

Message Edited by txjohn on 09-05-2009 05:56 AM

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Established Contributor
Watchmann
Posts: 985
Registered: ‎05-14-2008
0

Re: Credit card advice--please help me!

[ Edited ]

IMO you need to start focusing on paying the balances down.  Moving them around to minimize the net APR is fine as a first step, but the MAIN focus going forward has to be liquidating the debt which is way too high for someone your age and for the salary you are making.  Have you made a budget to determine the minimum you need to live on and maximize what you can pay on your debt?  To me this is the first step in getting this debt under control.  Even though you are only 21 you need to get rid of this debt asap otherwise it will just grow.  It may be time for a Dave Ramsey 'beans and rice' type of existence.

 

Talking about getting the FICO scores up, utililization, additional credit, etc is NOT the most important thing at this point. Tackling the debt is Job One.  You must have a plan to pay it off within two years. 

Message Edited by Watchmann on 09-05-2009 10:44 AM
Valued Member
RobsFico
Posts: 26
Registered: ‎03-15-2008
0

Re: Credit card advice--please help me!

I agree completely. Rearranging the deck chairs isn't going to prevent the inevitable. Number #1 priority is to pay off your already too high total CC debt.

 

Cereal.

Valued Contributor
usmc58555
Posts: 1,673
Registered: ‎02-18-2009
0

Re: Credit card advice--please help me!

I like the deck chairs comment.

 

Very Apt in this case.

 

My opinion?

 

14.9 is not bad. Its not crushing or onerous.

 

Yes, the amount of interest you are generating on that one account is going to double, but since you do not have enough to pay the balance, well, what are you gonna do?

 

1- my standard advice of take a good hard look at your money incoming, out going, and how you spend it and see where you can save, scrimp do whatever.

 

Can you stop charging right now?

 

2- Since you cannot pay the big bill off, pay one of your smaller ones off in full. That way the minimum monthly you have been sending to say Discover you can now send as well and cover the interest increase.

 

Budget, live cheap, sacrafice, save get your bills paid off.

 

I just do jot see, in this economy the probability of you opening new debt to get yourself out of old.

 

It really does not end well for a lot of people anyway. Deal with what you have now.

Signature line begins:
Credit is not a right, but a business transaction, one that takes into account risk, and charges accordingly based on that risk.
Your credit score is an aspect of your credit profile. Important? yes but just an aspect. Contributing/supplemental information determines the finer point of the deal. Ask any question, respect me not to get mad if the answer is not the affirmation you are looking for,

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+