Credit Card Center Advertiser Disclosure†
07-28-2009 08:07 PM
I can say we survive the last year thanks to our credit cards but finally our situation is improving and now we are able pay way more than the minimum payments but sometimes feels like our effort is not paying off. Our credit cards APR go all the way to from 13% to 25%, I think we can not get a loan to consolidate the ones with really high interest or a balance transfer because our Fico Scores are around 625 due to our credit availability ratio not a single late payment in six years.
Any advice in how to make our payments more effective?
Thanks in advance for your help
07-28-2009 08:15 PM
Our credit card debt go all the way to 43K our minimum payments monthly get to $2200 additional to that we can pay $1000 to $1500 more each month.
Should I just put that difference towards the ones with highest interest or pay first the ones with low interest and then transfer the balances of the high interest ones.
07-28-2009 08:21 PM
If you have cards with small balances that can be paid off and removed from the process do that. That can help with the FICO models.
Generally you want to pay off the accounts with the highest APR's first. This will be the most economical way to proceed. Don't pay the lowest APR's first and then BT. That's going to end up costing you even more money. I doubt anyone is waiving any 0% APR - no fee BT offers your way these days!
07-29-2009 04:36 AM
I would use the Debt Snowball approach which makes minimum payments on all but the card with the smallest balance and you back extra on that one until its PIF. Then you pay the next smallest balance and so on.
This is the best way in terms of motivation and being FICO friendly. It goes without saying you must stop using the cards.
07-29-2009 06:14 AM
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.