12-28-2007 09:44 AM
The best plan is the plan that works for you. If it were me, I'd focus on paying off the CCs before I tackle the student loans, for a couple of reasons. 1) Student loan interest is tax deductible; CC interest is not. 2) CC utilization affects your FICO scores much more than student loan balances do.
techgirl wrote:Wow, Thanks! I would like one because I am going to start traveling, and I am at that age that I probably should have at least one premium bankcard. Right now all of my credit cards are coming from Federal Credit Unions - and they are all maxed out. Okay, on my way to purchase my true credit score - be back - I don't want to hurt my score, so I am not applying for anything until I am absolutely sure - my main focus is to pay off all high interest rates balances:Student loan 16.75% firstBoth (2) $5,000 11.75% credit card nextOne $10,000 credit card at 7.9%Two Student loans at $5,000 at 11.79% interest lastIs that a good game plan? Once my credit line is down I will apply, unless it makes sense to get another card due to the percentage of credit limit versus balance.....
12-28-2007 09:47 AM
techgirl wrote:Hello, I am new to this, but here I go...My history:Okay, I have no negative credit, nothing late, but.... I have high credit credit card limits that I never worried about because I never use my credit cards, and I have student loans. One right now is at 16.75 with Sallie Mae (almost done paying it off), and a couple at $5,000 each at 11.5% interest with Sallie Mae. Then both my husband and I have Federal Student Loans at 6% interest that we will need to be paying soon. My plan of action is to pay the 16.75% off first - only have $1,500 left on it, then pay down all of my credit cards to bump up my score. We have three credit cards, one with a $10,000 limit at a 7.9% interest rate and two at $5,000 limit - 11.75% interest. I am throwing about $1,300 on the student loan each month and my husband is paying down the credit cards a little at a time.My credit scores are:TU: 734 (I think they are missing my $10,000 credit card)Experian: 659Equifax: 683When I pull my credit they say this is where I can improve:There are not enough premium bankcard accounts on your credit report. [TransUnion, Experian, Equifax] - if I got another card this would help my percentages, right? I would really love an AmericanExpress card. What credit bureau score needs to be where?There are not enough revolving accounts on your credit report. [TransUnion] - I don't know if I want to tell TransUnion about this card right now 'cause it could bring down the score.There are too many personal finance accounts on your credit report. [Experian, Equifax] - would that be student loans or credit cards???Help!
12-28-2007 09:50 AM
12-28-2007 09:55 AM
Don't be so hasty to cancel TC, as they are useful. As I said, I use TC for the 3-in-1 reports, just make a note to ignore the scores that come with them.
techgirl wrote:Okay, then all cc's will be paid off before I get another :-) I am looking for products - I would like to have a good credit score from all three? and credit reports to go along with it. I am cancelling TrueCredit to today. Which product should I get?Thanks,Angie
12-28-2007 10:01 AM
12-28-2007 10:56 AM
Okay, thanks! I have had Score Watch and one point getting into a new home, and I like it alot, the only thing is that you only get one score - I want the score that is the lowest...
12-28-2007 11:06 AM
12-28-2007 11:16 AM
TC scores are useless, yes. But they do give you 3-in-1 report monitoring, and also list reporting dates as mm/dd/yyyy on TU and EX, as opposed to mm/yyyy format on myFico. Those are not useless at all, and worth a few bucks a month for me.
zman wrote:Stop spending money on TrueCredit they DO NOT report actual FICO scores. (useless)Only MyFICO and Equifax use real FICO'sAnd only MyFICO will give you all 3 real FICO scores PERIOD.
12-28-2007 11:17 AM - edited 12-28-2007 11:19 AM
Stop spending money on TrueCredit they DO NOT report actual FICO scores. (useless)Only MyFICO and Equifax use real FICO'sAnd only MyFICO will give you all 3 real FICO scores PERIOD.
12-28-2007 11:23 AM - edited 12-28-2007 11:49 AM
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