02-25-2013 10:07 AM
I first would like to say i followed the home loan board, and now are proud home owners i love this board and the advice so much..
We would like to apply for a auto loan soon. If i remember correctly, what was the% balance you want to keep on your CC that will give you the most boost to your credit? We have the funds now ( thank you tax returns) to pay all of them down.
Here is what i have, (yes its alot)
1. Credit one -$400 credit limit
2. Merrick Bank- $650 CL
3. Orchard Bank $400 CL
4. Discover. $1200CL
5. Premiere $375 CL
6. Capitol One $500 CL
7.Lowes $900 CL
8. Home Depot $1800 CL
Any HELP is much appreciated.
02-25-2013 10:12 AM - edited 02-25-2013 10:17 AM
max effect on score between 0-9% (utility)
You may want to list the interest rates on each card for a little more help
and a big congrats on your NEW HOME!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
02-25-2013 10:14 AM
Geez, you've got some work to do! Util below 30% will boost your score, but ideally below 10% for the best loan rates. Good luck!
02-25-2013 10:16 AM
02-25-2013 10:25 AM
It depends on how much you are talking about that you can pay toward these cards. And yes what is your APR on these? Currently if my math is correct you are at 77% Utilization...and for the best score increase you would want to be at 10% or less. In this case you would need $4170 to pay these debts down to 10% of your available credit of $6225 leaving you a revolving balance of $625. I have read on here many times that it is best if only (1) card shows a balance and the others to be at zero. But I am not sure of how much that really matters as long as you get your UTL down.
Hope this helps.
02-25-2013 10:28 AM
Pay them all in full, allow the discover to report a <$50 balance.
Once they all report 0 balance, call each one and request a CLI, but don't allow HP's.
Email EO of Cap1 for a CLI.
Get car loan from a CU @ a reasonable rate.
Sock draw everything except the Cap1, Discover, and Lowes.
Mind your garden.
02-25-2013 10:57 AM
we have $3000 to pay down these CC, i would have to call each one to get the apr, but i think preimere is the highest at 20%? but not sure.
I will talk to my husband and tell him all of this advice, or at least we can pay each of them down to 30% and then use our extra cash to pay them down even more.
I appreciate EVERYONES help
02-25-2013 11:04 AM
You will def make good progress with paying the $3k no matter where you put it. If it were me I would pay off all the lower balances that I could to zero them out. Mentally it just helps so much more to see them paid in full. And when you see your score jump it makes it all worth it. Good luck to you!!!