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