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Drop Utilization = Get the card you want!

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skyisthelimit
New Contributor

Re: Drop Utilization = Get the card you want!

NFCU (there the best!)  I would hope that other credit unions could come close to matching there rates.

Message 21 of 25
FrugalRican
Blogger

Re: Drop Utilization = Get the card you want!


@skyisthelimit wrote:


FrugalRican - The 60% uti was really about 4grand in debt (I clear 50k a year). I just never could seem to get it down though,
so me paying the loan gets it paid off at a certian time. Also will keep overall UTI under 10%

 


Here's the thing that worries me.

You're saying you have 4K in debt, you make 50K a year, but you "never seem to get it down"... and then you just added a new personal loan onto that.

You paying the loan gets it paid off but does that mean you'll completely stop charging and carrying balances on CC's? That's something that needs to be considered.

 

What you did works wonders for your FICO utilization, but the debt is still there. You still owe the 4K.

Getting new cards certainly did boost your overall utilization as well, helping you in the long run with FICO scores. Just make sure you don't add onto the CCs.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

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Message 22 of 25
armywifey85
Regular Contributor

Re: Drop Utilization = Get the card you want!

Penfed has really great rewards and rates. I like the challenge of getting Penfed, Nfcu is great, they will give to just about any member with a credit score of 600 ish a credit card. My Son got his first account with them, he had no credit, but he is in the Navy so that might of helped him. 

Message 23 of 25
Tonya-E
Established Contributor

Re: Drop Utilization = Get the card you want!


@FrugalRican wrote:

@skyisthelimit wrote:


FrugalRican - The 60% uti was really about 4grand in debt (I clear 50k a year). I just never could seem to get it down though,
so me paying the loan gets it paid off at a certian time. Also will keep overall UTI under 10%

 


Here's the thing that worries me.

You're saying you have 4K in debt, you make 50K a year, but you "never seem to get it down"... and then you just added a new personal loan onto that.

You paying the loan gets it paid off but does that mean you'll completely stop charging and carrying balances on CC's? That's something that needs to be considered.

 

What you did works wonders for your FICO utilization, but the debt is still there. You still owe the 4K.

Getting new cards certainly did boost your overall utilization as well, helping you in the long run with FICO scores. Just make sure you don't add onto the CCs.


+1 to Frugal. As long as you aren't running debt back up on the credit card this option should work. It is a bit concerning though that you weren't able to get the debt down with it on the card at about the same interest rate. I understand if you were intentionally seeking the FICO boost, but I don't really understand the fixed payment aspect of your argument. The reason being, you can use an online calculator tool to determine the correct fixed payment amount to pay off the debt in a specified amount of time with it remaining on the card. Now if your credit union payment is lower then I kind of get it as long as there wasn't a fee to initiate the loan and set up the account. Only because that made the debt grow (albeit probably by a low amount). At the same time, I have to admit, I had considered trying this last year, but opted against it. I felt like I had to learn how to pay the debt off on the card so I could learn how not to get myself in 6k of credit card debt anymore. It's really a personal choice though and if you see the benefit in it, then that is what makes the difference.
Wallet: Amex BCP-45k| Barclays Rewards MC-26.3k| Citi Thank You Preferred-27.5k| Citi Double Cash-14k| Target MC-11.5k| Walmart MC-7.5k| Chase Freedom Unlimited Signature-6k


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Message 24 of 25
skyisthelimit
New Contributor

Re: Drop Utilization = Get the card you want!

Debt is debt, no matter where you move it to; yes I understand this.  I just like being able to work the payments into a easy budget, next go around I just never carry anything over $500 on the cards. 

Message 25 of 25
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