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Tough decisions on what to pay off first

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SpeedingWheels
Contributor

Tough decisions on what to pay off first

I'm looking to make the biggest impact on my FICO score. 

I've been approaching my payments the wrong way from everything I've read.. I just wish I had seen this information even 2 weeks ago. 

 

Here is the situation. 

 

I have 5 cards right now. 

 

Cap1 secured - $400 limit - $98 balance (1yr 1mo - PIF every month)

Cap1 Cash Rewards - $500 limit - $200 balance (4 months - PIF every month)

Walmart STore - $800 limit - $435 balance (4 months - carrying balance)

Amazon Store - $1600 limit - $463 balance (4 months - carrying balance on 6mo/0% purchase)

Meijer Store - $300 limit - $120 balance (2 months - PIF last month, might carry small balance this month)

 

As of today, all payments are current but I have roughly $275 sitting in my checking acct that can be used to make additional payments. 

 

Both Cap1 cards post on the 14th as does Amazon. Walmart posts on the 20th

 

My initial through is that I should pay off both Cap1 cards so they report $0 balance this cycle. 

But I wonder if I should look at making sure ALL 5 accts are under 30% first and then zero out accts as I can? 

 

Or even put it all to WM to knock down the interest next cycle? 

 

I should mention, the 2 Cap1 cards have been PIF from the last statement, these are new charges. 

(I run my bills through the Cash card each month for the 1% back) - I can zero them out but there wouldn't be any interest if I let them post. 


Walmart Discover ($5000) - Amazon ($5500) - Cap1 Cash Rewards ($2000) - Meijer ($5000) - Discover More ($1800) - Car Care One ($2100) - Amex Delta Skymiles ($2000) - Citi Thank You Preferred ($2000) - Chase Freedom ($500) - Sam's Club, GE ($1237?)
Message 1 of 9
8 REPLIES 8
Crashem
Valued Contributor

Re: Tough decisions on what to pay off first

Getting cards below 30% will help a little.  Getting a couple cards to report 0 will help more in your case.  Remember report 0, notI don't use cards.

               LIMITS IN CARD DESCRIPTIONS
Message 2 of 9
Wolf3
Senior Contributor

Re: Tough decisions on what to pay off first

Unless you have some great need to apply for somethig right away, I suggest you pay the highest interest rate cards down first. Getting to no interest should be your first goal.  Then you can get your utilization down for maximum score.    

Message 3 of 9
Revelate
Moderator Emeritus

Re: Tough decisions on what to pay off first


@Wolf3 wrote:

Unless you have some great need to apply for somethig right away, I suggest you pay the highest interest rate cards down first. Getting to no interest should be your first goal.  Then you can get your utilization down for maximum score.    


This.  Your interstitial FICO scores are absolutely meaningless between applications.  Do what makes the most financial sense: pay off your highest APR, then your next highest, and so on and so forth down the line to whatever utilization number you're happy with.

 




        
Message 4 of 9
Crashem
Valued Contributor

Re: Tough decisions on what to pay off first


@Revelate wrote:

@Wolf3 wrote:

Unless you have some great need to apply for somethig right away, I suggest you pay the highest interest rate cards down first. Getting to no interest should be your first goal.  Then you can get your utilization down for maximum score.    


This.  Your interstitial FICO scores are absolutely meaningless between applications.  Do what makes the most financial sense: pay off your highest APR, then your next highest, and so on and so forth down the line to whatever utilization number you're happy with.

 


I would have recommended highest apr first, but op said specifically how to get fico up.  So I assume he is apping soon.

               LIMITS IN CARD DESCRIPTIONS
Message 5 of 9
Autumnslight
Frequent Contributor

Re: Tough decisions on what to pay off first

I'd pay the Walmart one. It's over 50% utilization right now, plus you said you've been carrying the balance, so you're paying interest. The others are noted as PIF each month or 0%, so you're not paying any interest there.

 

*Edit* Oops, didn't see that you're specifically trying to maximize the score rather than save money. In that case, I'd still pay Walmart down to under 50%, then totally pay off Cap One secured and Meijer.

Scores:
07/29/12: EX FICO (Amex) 684 | EQ MyFICO 631 | TU Walmart 695
Current: EX FICO (MyFICO) 733 | EQ (MyFICO) 683 | TU (Walmart) 745

First Goal: 700+ across the board - Got it on EX & TU!!!
Message 6 of 9
scarrollprint
Frequent Contributor

Re: Tough decisions on what to pay off first

Honestly, I'd put it towards the walmart and not look to apply on anything till you have less than 9% across the board with a couple at $0. Otherwise your just blowing money away on interest  and in the end that will get you no where.



Current: Eq- 624 Ex - 631 (lender pulled) TU - 661 (lender pulled)
Goal 700+ across all three
Message 7 of 9
Revelate
Moderator Emeritus

Re: Tough decisions on what to pay off first


@Crashem wrote:

@Revelate wrote:

@Wolf3 wrote:

Unless you have some great need to apply for somethig right away, I suggest you pay the highest interest rate cards down first. Getting to no interest should be your first goal.  Then you can get your utilization down for maximum score.    


This.  Your interstitial FICO scores are absolutely meaningless between applications.  Do what makes the most financial sense: pay off your highest APR, then your next highest, and so on and so forth down the line to whatever utilization number you're happy with.

 


I would have recommended highest apr first, but op said specifically how to get fico up.  So I assume he is apping soon.


Yeah, I know bud; however, the convential wisdom here is FICO > all and that's likely what he's been reading in the last two weeks, so I re-emphasize the financial piece more strongly than I should.  The posts here tend to present a slightly distorted view of the world, and while it's an important one to understand, there isn't anything mandatory besides: pay your bills on time every time; almost everything else is putting lipstick on the pig.  

 

It wasn't a slam towards you at all, you know I respect ya highly dude, I just occasionally offer a contrary opinion Cat Tongue

 




        
Message 8 of 9
jamesdwi
Valued Contributor

Re: Tough decisions on what to pay off first


@SpeedingWheels wrote:

I'm looking to make the biggest impact on my FICO score. 

I've been approaching my payments the wrong way from everything I've read.. I just wish I had seen this information even 2 weeks ago. 

 

Here is the situation. 

 

I have 5 cards right now. 

 

Cap1 secured - $400 limit - $98 balance (1yr 1mo - PIF every month)

Cap1 Cash Rewards - $500 limit - $200 balance (4 months - PIF every month)

Walmart STore - $800 limit - $435 balance (4 months - carrying balance)

Amazon Store - $1600 limit - $463 balance (4 months - carrying balance on 6mo/0% purchase)

Meijer Store - $300 limit - $120 balance (2 months - PIF last month, might carry small balance this month)

 

As of today, all payments are current but I have roughly $275 sitting in my checking acct that can be used to make additional payments. 

 

Both Cap1 cards post on the 14th as does Amazon. Walmart posts on the 20th

 

My initial through is that I should pay off both Cap1 cards so they report $0 balance this cycle. 

But I wonder if I should look at making sure ALL 5 accts are under 30% first and then zero out accts as I can? 

 

Or even put it all to WM to knock down the interest next cycle? 

 

I should mention, the 2 Cap1 cards have been PIF from the last statement, these are new charges. 

(I run my bills through the Cash card each month for the 1% back) - I can zero them out but there wouldn't be any interest if I let them post. 


Since you PIF on all but 2 cards those are the ones in question and since one has 0% for 6 months... that leaves one card 

Walmart 800CL... since its over 50% UTL its the other reason to pay it off or at least down. 

 

 

Cards: Chase Southwest 20k & CSR 17k & CSP 10k & FNBO 30k Oregon Duck 5k, & AMEX BCP 32.5k & Amex Magnet 15k&amg; Hilton Surpass 7.5k & Delta Gold 12k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 20k, Paypal Extras MC 10k, Paypal Credit 7.25k CapOne Venture 15k, QS 2.5k, QS 750, Amazon 10k, Walmart 10k, Citi Simplicity 18k, Discover IT 23k and a nice stack of store cards.
Landmarkcu Personal Loan 10k
Message 9 of 9
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