Credit Card Center Advertiser Disclosure†
03-29-2013 01:15 PM
03-29-2013 01:21 PM
The rule of thumb is to pay off the highest APR cards first.
Others like to pay from lowest balance to highest balance, so cards are paid off quicker.
03-29-2013 01:23 PM
03-29-2013 01:23 PM
So, I have 14,500 in credit and I owe 4500. I want to pay them off so what should I do. I owe $300 on store cards. But, I owe chase 3000 and citi 1200. Help me with a plan of action. I have about 1000 to pay on cc per month
Are you using these cards for any new charges, or do you have others CC for that? What are APR's for each?
03-29-2013 01:34 PM
pay off highest APR card first, then pay off the lower ones after that.
If you are unable to pay it off completely within next 2-3 months, get a personal loan for the amount on cards that you owe that are charging you interests fees, and use that money to pay off the credit card loans. Reason being personal loans interest rates are much lower than credit card interest fees.
03-29-2013 01:57 PM - edited 03-29-2013 02:09 PM
If your citi card is still within the 18 mo 0 apr period then I would pay off the store cards first (since their apr is usually 20+), pay min amount on citi, rest on chase. Minimum on citi and rest on chase for the next couple months until you pay off chase. Finish paying citi balance.
EDIT: oops ignore the 18 mo bit...but still pay off the store card first, then chase, then citi or try to do a BT from chase to citi (still paying off the store card first)?
03-29-2013 02:02 PM
Here's the simple rule about paying CC debt:
1. Pay all the minima first of all
2. If there's money left over from step 1, pay the balance with the highest interest rate
3. If there's money left over from step 2, pay the balance with the next highest interest rate
4. If there's money left over from step 3, pay the balance with the next highest interest rate
5. If there's money left over from step 4, etc.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.