Spree? Advice Needed . . .

[Anonymous]

I have a TU 652, EQ 645.  Utilization is 55% and is the main killer (I also have a lot of accounts currently open due to student loans and I have 4 inquiries in the last 12 months) on my scores as I have never missed a payment with anyone in 15 years.  I have a lot of debt, but make a lot as well as an attorney.  Wish I could pay it off but can't right now.  I'm trying to get my utilization down and move some balances from BofA, which jacked my rates.  I may need to get a car loan or refi my mortgage in the next 6-12 months so don't want to kill my score with inquiries if I won't get approved anywhere anyway, but also might benefit if I do get approved as my utilization may come below 50% with the new leash.

I'm looking at aggressive transfer offers at PNC and Sovereign (my mortgage holder) and also considering Wachovia, M&T, Discover, Cap One, and maybe Citi and Alliant as my universe of apps.  Not sure if I should pick one, none or a bunch and do this and hope for the best.  Appreciate any and all advice!

Thanks   

[moondog7324]

Your main problem seems to be utilization- there are two ways to solve this- pay down the debt, or get more credit. I prefer paying down the debt, you want to get your total utilzation down to <9% with no card over 30%

The problem with getting more credit- you expose yourself to getting further in debt and you might not get all cards under the 30% mark.

Usually I say manage your debt, not your FICO- but in your case you have a potential car loan and/or mortgage refi in the near future. You also don't want additional inquiries with those things in the works.

Message Edited by moondog7324 on 05-14-2009 01:47 PM

[Creditaddict]

PNC and Alliant would be my choice.

[Anonymous]

As an fyi, I am actually paying down revolving debt -- revolving balances are less each month, not by as much as I'd like, but they are less each month . . .

[smallfry]

OP your scores are at best borderline. If you are looking for a mortgage soon new accounts won't help a bit. Not getting personal but if you make a lot of money why not pay down the debt? 55% utilization and looking for new credit with those scores in this credit climate? I wouldn't be. 

[moondog7324]

How many credit cards do you currently have? Is that 55% util from you CCs, or your student loans.

[moondog7324]

---

@Creditaddict wrote:
PNC and Alliant would be my choice.

---

No offense- but I would not take advice from someone named "creditaddict" (and who just recently applied for a  3rd Target card) about opening new accounts. Manage what you have!

[Creditaddict]

---

@moondog7324 wrote:

---

@Creditaddict wrote:
PNC and Alliant would be my choice.

---

No offense- but I would not take advice from someone named "creditaddict" (and who just recently applied for a  3rd Target card) about opening new accounts. Manage what you have!

---

LOL. I mean I would probably really suggest not to apply for anything until debt is paid below 9% but IF I was going to apply right now, the 2 I listed would be the only ones I would choose. 

[Anonymous]

I tend to agree that if you plan to refi your mortgage and/or get a car loan in the next 6-12 months you'd be better off paying down your balances as much as possible. If you have any cards with smaller balances that you can knock out of the way completely, it would be good to do that, eliminate that minimum payment which you can then apply to pay off another card, etc. The less minimum payments you are responsible for, the better when it comes to your refi too. They use your monthly minimum payments to figure out your DTI ratios, so it would help you there to get rid of some payments if you are able to.

[Anonymous]

If I could pay it down more rapidly I would.  And after researching things I will indeed pay off the smaller balance cards.  BUT, if I do apply what is the sentiment as to what cards might give me a shot?

Thanks!