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What would you do?

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alexak
Regular Contributor

What would you do?

Alrighty, so this month I have some extra cash to throw towards my credit cards. I have a few small balances and one card with a large balance (approx. 90%). The card with the large balance has 0% apr. Should I just make the minimum payments towards the small balances and put most of my money towards the large balance, or split it between all my cards with balances?
Message 1 of 12
11 REPLIES 11
FastForward
Frequent Contributor

Re: What would you do?


@alexak wrote:
Alrighty, so this month I have some extra cash to throw towards my credit cards. I have a few small balances and one card with a large balance (approx. 90%). The card with the large balance has 0% apr. Should I just make the minimum payments towards the small balances and put most of my money towards the large balance, or split it between all my cards with balances?

Hi there, can you tell us what "a few small balances and one card with a large balance" specifically means, i.e. actual numbers?  Also, exactly how much extra cash are you talking about?  This will probably help others give you better suggestions/advice.

AmEx PRG (NPSL) | AmEx BCP (10k) | AmEx Blue Cash (1k) | AmEx SPG (3.5k) | Barclay Arrival WMC (7.5k) | Barclay Sallie Mae (1.5k) | Cap1 QS (2k) | Chase Freedom (1k) | Discover IT (4.5k) | InTouch (Local) CU MC (5k) | InTouch (Local) CU LOC (25k)

Citi/Best Buy (AU) (1.5k) | Citi/Best Buy (7.5k) | Comenity/Crate & Barrel (4k) | Comenity/Restoration Hardware (9k) | GE/Ethan Allen (2.5k) | Synchrony Bank/Banana Republic (3.3k) | Synchrony Bank/Gap (3.3k) | Synchrony Bank/Walmart (3.3k)

myFICO scores ~ 691 (EQ) 670 (EX) 712 (TU) || Goal scores: 750+ (all 3)
Message 2 of 12
Leadberry
Established Contributor

Re: What would you do?

How much money do you have and what exactly are the balance amounts?  It would also help if we knew the APR's and CL's on each of the cards.

   
FICO Scores 800+
Message 3 of 12
alexak
Regular Contributor

Re: What would you do?

I have about 600$ to out towards:

1900/2000 chase freedom
450/1000 Citi
150/500 Cap1
Message 4 of 12
alexak
Regular Contributor

Re: What would you do?

Oh and 250/750 from Victoria's Secret
Message 5 of 12
DaylightSlaving
Regular Contributor

Re: What would you do?

I'd pay off Cap1 and Citi and let them report a 0$ balance for a while. And then depending on your credit profile, I'd check out moving my $1900 dollar balance with Chase onto a better BT card and begin paying that down quickly.

 

Continue doing whatever you're doing with VS. I'm sure the VS APR isn't flattering, but I'm also sure the $1900 balance with Chase doesn't have 6% APR either. Smiley Tongue

 

Others may have a different strategy, but personally, I'd much prefer simplifying the dilemma.



Last App: 12/25/2013
TU: 743 (Discover) Ex: 718 (CS) Goal: 760+ Across All
Gardening Until 6/25/14+
Message 6 of 12
alexak
Regular Contributor

Re: What would you do?

That makes sense. I have 0% apr on the chase right now (I use that card a lot!) I will do that- pay off citi and cap1 to 0 and work on paying off chase! Thanks!!
Message 7 of 12
Creditaddict
Legendary Contributor

Re: What would you do?

for scoring you will see more of a jump by having 2 out of 3 accounts currently reporting balances go to 1 reporting a balance and 2 paid off.

unless you were able to take all 3 of them to less than 9% i always prefer paying more accounts off then splitting all over the place.

plus it usually feels better to see $0 and move on then just see the same number accounts next month with balances, regardless if those balances go down, you have the same feeling of making the same number of payments again.

Message 8 of 12
coldnmn
Mega Contributor

Re: What would you do?

Pay the cards that saves you the most money! Scores will rebound once you get your cards payed down. Utilization once paid off holds no memory in your credit file.

Discover IT $17k / US Bank Ace (VSig) $13.5K / US Bank Cash+ (VSig) $13.5k
Sam's Mastercard $15k / Walmart Mastercard $10k / Blispay $7.5k PayPal Ex MC $10.8k
CareCredit 5k / Husq $5k / Cap1 QS $4.5k / Barclay Ring $5.35k / Citi DC (WMC) $12k
Gardening Date 7/01/16 / MyFico 08: EQ 801 / TU 777 / EX 771 / 06/08/17
Message 9 of 12
notfancy
Valued Contributor

Re: What would you do?


@alexak wrote:
I have about 600$ to out towards:

1900/2000 chase freedom
450/1000 Citi
150/500 Cap1

Since you have 0% on the Chase account, leave that for now. (but when you can try to get it under 60% UTL since 90% is considered Maxed) Pay off the Citi one and if you can, pay off the VS one. If not pay off the Cap 1 instead. You have 33% UTL on the VS and 30 on Cap 1 and I'm sure neither of them have very good interest terms. Alternately, if your Citi card has better interest rates than the Cap and VS, you can pay the cap and vs off and then put the rest on your Citi card to bring the balance on that one down to $250 which would give you one 0% card at 90%, one card (Citi) to 25%, and two paid off cards.

625 EQ FICO Current Score: 660 DCU EQ FICO/ 645 Scorewatch EQ FICO , EX FICO 664, TU FICO 737 (08/2014)
Goal Score: 700   Seedling again as of 07/29/14
Message 10 of 12
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