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which should I paydown first?

Regular Contributor

which should I paydown first?

HI i have worked so hard to get my credit where it is now..i want to continue to pay down debt that is on some of my cards..I currently ahve 15 cc and i have two chase slate has 2200 on it with 3000  limit and chase FU has 4300 limit and 2174 on it..these balances were from balance transfers

i also have merrik with 600 on it with 1500 limit (want to close this one0 and also 840 on captial one with 2400.. the rest of my cards pretty much have 0 balanes//my scores are about 735 across the board

if i can ony pay using about 14oo dollars this next week which is better to hit first..should i pay one with smaller limits down to 0 or put a bunch  onthe chase

thank you much

5 REPLIES
Community Leader
Senior Contributor

Re: which should I paydown first?

If the interest rate on one of the cards is much higher than another, I'd make your decision based on interest rate.  Otherwise, I'd make the decision based on what will make you happiest.

 

Your reasoning should be IMO this:

      (a) I am going to pay off all my CC debt regardless, and

      (b) I am not going to apply for any more credit until I do that

 

therefore

      (c) It doesn't really matter what order I do it in (I'd end up with the same score no matter what)

 

If either (a) or (b) is not true, that's what your concern should be.  That's a big red flag IMO.

 

If (a) and (b) are both true, then (c) follows.

Regular Contributor

Re: which should I paydown first?

thank youSmiley Happy

Super Contributor

Re: which should I paydown first?


fritscher wrote:

HI i have worked so hard to get my credit where it is now..i want to continue to pay down debt that is on some of my cards..I currently ahve 15 cc and i have two chase slate has 2200 on it with 3000  limit and chase FU has 4300 limit and 2174 on it..these balances were from balance transfers

i also have merrik with 600 on it with 1500 limit (want to close this one0 and also 840 on captial one with 2400.. the rest of my cards pretty much have 0 balanes//my scores are about 735 across the board

if i can ony pay using about 14oo dollars this next week which is better to hit first..should i pay one with smaller limits down to 0 or put a bunch  onthe chase

thank you much


My recommendation would be:

1. stop using the cards

2. pay off merrick

3. pay off capital one

4. if merrick has annual fee, then close it, otherwise cut it up but don't close it yet

 

FICO8 EQ 721 TU 747 EX 732 Total revolving credit 454000
Regular Contributor

Re: which should I paydown first?

thank you..figured that is best to do the merrick and cap one then work on the chase with the balance transfers as they have 0 interest rate now..but they do add to high util on those

Senior Contributor

Re: which should I paydown first?

Since you won't be applying for credit any time soon, your credit scores aren't a huge deal at the moment so your individual card utilization isn't really a big factor either.  Your goal is to get rid of that debt ASAP.  Highest interest cards first make the most sense and letting the balances ride in the meantime on your 0% cards seems like the right move.