HELP! High balances first, then pay off small?

[airedna3441]

Hi, 

Newbie here, please help! My husband and I are paying off our credit cards to try to raise our score to qualify for a usda or fanniemae homepath mortgage, so far I am at 644 fico from Equifax, and He is 619, and we need to raise our scores to at least 660.  So far we have paid off 4, but still have 5 to go,and I can't figure out what to tackle first.

Merrick bank 1357.69 balance on 1400 limit

Torrid 671.38 balance on 1090 limit

Sams Club 1428.30 bal on 1400 limit ( card closed by sams due to medical hardship request)

Capital One 718 balance  on 750 limit

Capital One 1320.92 balance on 1250 limit

My plan so far as I have 1400 this month to pay things off was to pay off the Torrid account and the capital one with a 718 balance and make an extra payment to Sams and to the other capital one account  to at least get the under their limits, then tackle paying off the remaining 3 one by one each month. 

Now will that do the trick or should I take the 1400 I have and pay down one of the ones that are closest to their limit? ( Merrick, Sams club or Capital one's?)

I'm a little confused as to what to do, Please some advice! 

Airedna

[Creditaddict]

I believe for scoring your plan is best.... Less cards with balance will give more score boost then 1 not. Being maxed

[airedna3441]

Thank you for replying so fast, now after I pay these two off could I add my husband as an authorized user to further pick up his scores with my credit history on those cards or would that pull them down making it look like he sought too much credit in such a short time? 

[KRAMathKY]

I would start by paying the two cards that are over the limit down some. I realize the Sam's Club account is closed, but you will have extra fees added to your account for being over the limit.

I would then pay the Torrid card off. I think the general rule used by most on this forum is to pay off the card with the smallest balance first, then work toward the higher balance cards.

Keep in mind that a credit score is a one time picture of your overall credit report. If your balances are high today, you pay them off, and the accounts update tomorrow, then your credit score will improve.

[KRAMathKY]

As for adding your husband as an AU, his score would increase if the account adds age to his AAoA. If the account is older than his current average and it has a positive payment history then he will see a bump in his score.

Remember, Rome wasn't built in a day. Small steps pay off in the long run.

[SunriseEarth]

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@airedna3441 wrote:

Hi, 

Newbie here, please help! My husband and I are paying off our credit cards to try to raise our score to qualify for a usda or fanniemae homepath mortgage, so far I am at 644 fico from Equifax, and He is 619, and we need to raise our scores to at least 660.  So far we have paid off 4, but still have 5 to go,and I can't figure out what to tackle first.

Merrick bank 1357.69 balance on 1400 limit

Torrid 671.38 balance on 1090 limit

Sams Club 1428.30 bal on 1400 limit ( card closed by sams due to medical hardship request)

Capital One 718 balance  on 750 limit

Capital One 1320.92 balance on 1250 limit

My plan so far as I have 1400 this month to pay things off was to pay off the Torrid account and the capital one with a 718 balance and make an extra payment to Sams and to the other capital one account  to at least get the under their limits, then tackle paying off the remaining 3 one by one each month. 

Now will that do the trick or should I take the 1400 I have and pay down one of the ones that are closest to their limit? ( Merrick, Sams club or Capital one's?)

I'm a little confused as to what to do, Please some advice! 

Airedna

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You have two TLs with over 100% UTIL.  PAY THOSE FIRST!!!  Especially the closed one!  Usually, it's a bad idea to close an account while there's a balance still due.  However, what's done is done.  

After that, I'd prioritize whatever has the highest interest.  If the APRs are anything like mine, I'm gonna say Merrick.  The reasoning behind that is you'll save money on accumulated interest. 

[essexjet]

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@SunriseEarth wrote:

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@airedna3441 wrote:

Hi, 

Newbie here, please help! My husband and I are paying off our credit cards to try to raise our score to qualify for a usda or fanniemae homepath mortgage, so far I am at 644 fico from Equifax, and He is 619, and we need to raise our scores to at least 660.  So far we have paid off 4, but still have 5 to go,and I can't figure out what to tackle first.

Merrick bank 1357.69 balance on 1400 limit

Torrid 671.38 balance on 1090 limit

Sams Club 1428.30 bal on 1400 limit ( card closed by sams due to medical hardship request)

Capital One 718 balance  on 750 limit

Capital One 1320.92 balance on 1250 limit

My plan so far as I have 1400 this month to pay things off was to pay off the Torrid account and the capital one with a 718 balance and make an extra payment to Sams and to the other capital one account  to at least get the under their limits, then tackle paying off the remaining 3 one by one each month. 

Now will that do the trick or should I take the 1400 I have and pay down one of the ones that are closest to their limit? ( Merrick, Sams club or Capital one's?)

I'm a little confused as to what to do, Please some advice! 

Airedna

---

You have two TLs with over 100% UTIL.  PAY THOSE FIRST!!!  Especially the closed one!  Usually, it's a bad idea to close an account while there's a balance still due.  However, what's done is done.  

After that, I'd prioritize whatever has the highest interest.  If the APRs are anything like mine, I'm gonna say Merrick.  The reasoning behind that is you'll save money on accumulated interest. 

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+1

Pay Cap 1 ASAP!!  Over your limit is killing your score.

[too-much-time]

Paying the least interest will get you out of debt the fastest!
My only exception is to pay down to 80% util on every card.

[AndySoCal]

I agree get the two accounts over the credit limit under credit limit then I would pay off the highest interest card first.

[airedna3441]

Ok so pay the capital one first ( 1320 on 1250)  then Torrid (671 on 1090)  and smaller Capital One (718 on 750) next month? We really would like to try for a house asap. Thanks in advance to all for such good info!