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Regular Contributor
Posts: 106
Registered: ‎07-09-2016
0

Paying taxes

Good Morning crew.  

 

Wanted to throw my situation out there and see what ya'lls thoughts/opinions were.

 

Looks like I owe about $4k this year to ole uncle sam.  Gonna get $700 back from the state, though.   I've got a few options. 

 

1. Pay with my NFCU CashRewards.  The fee is 1.87%.  and would get 1.5% back from the card.  Interest rate on the card is 15.65

2. Pay with a NFCU CLOC check.  Interest Rate is 16.9 (have 15k avail right now).  

3. Apply for a PLOC  for the amount (hope for approval and lower rate)

 

Overall utility of CC's is currently 10%  I will apply the state money directly to the balance as soon as I get it.  I make about $80k/yr.   I will be pretty aggressive at paying it off regardless, I just don't have that much cash lying around, unfortunatly.  I'm leaning towards option 2, because of utilization mostly, to avoid a new HP of a new loan. Not planning on seeking any credit for a while maybe a car toward the end of the year, house next summer.    

 

If y'all need more info, just ask.   Most current scores are below. 

CREDIT CHECK TOTAL: 27 MAY - EXP 660, TU 683, EQ 668
Last HP: 24 MAY [Garden for the rest of 2017]
Valued Contributor
Posts: 1,237
Registered: ‎01-31-2008
0

Re: Paying taxes

Not sure what the limit is on your NFCU CC?

That is the least expensive option. 16.02% for CC versus 16.9 for CLOC.

 

My guess is that their PLOC will be more than the rate on your CLOC (personal experience).. 

 

Pay down the CC as quickly as possible and shoot for 9% or less utilization overall and with all cards individually.

 

Good luck

Regular Contributor
Posts: 106
Registered: ‎07-09-2016
0

Re: Paying taxes

The limit on the CC is $9300.  

CREDIT CHECK TOTAL: 27 MAY - EXP 660, TU 683, EQ 668
Last HP: 24 MAY [Garden for the rest of 2017]
Valued Contributor
Posts: 1,237
Registered: ‎01-31-2008
0

Re: Paying taxes

If you are worried about scores and utilzation %, go with the CLOC.

You should be able to remain below 30% on utilization.

If however, you put in on the CC, that will bump your CC utilization into an area that will likely pull down the scores.

Frequent Contributor
Posts: 373
Registered: ‎06-04-2015

Re: Paying taxes


JimBo99 wrote:

Good Morning crew.  

 

Wanted to throw my situation out there and see what ya'lls thoughts/opinions were.

 

Looks like I owe about $4k this year to ole uncle sam.  Gonna get $700 back from the state, though.   I've got a few options. 

 

1. Pay with my NFCU CashRewards.  The fee is 1.87%.  and would get 1.5% back from the card.  Interest rate on the card is 15.65

2. Pay with a NFCU CLOC check.  Interest Rate is 16.9 (have 15k avail right now).  

3. Apply for a PLOC  for the amount (hope for approval and lower rate)

 

Overall utility of CC's is currently 10%  I will apply the state money directly to the balance as soon as I get it.  I make about $80k/yr.   I will be pretty aggressive at paying it off regardless, I just don't have that much cash lying around, unfortunatly.  I'm leaning towards option 2, because of utilization mostly, to avoid a new HP of a new loan. Not planning on seeking any credit for a while maybe a car toward the end of the year, house next summer.    

 

If y'all need more info, just ask.   Most current scores are below. 


FYI: A payment plan with the IRS amounts to 6% APR plus a small transaction fee.

 

I went that route because 1) interest on my credit cards is significantly higher 2) it won't affect utilization

Ch 7 Discharge May 2015: EQ 588/TU 552/EX 570
July 2017: EQ 681/TU 668/EX 671

Discover IT $3800/Target $1300/NFCU CLOC $2000/NFCU Cash Rewards $20,000/PenFed Power Cash Rewards $18,000/Total Utilization 13%
Frequent Contributor
Posts: 315
Registered: ‎09-15-2016
0

Re: Paying taxes

I would personally opt for Steelers plan.

FICO08 7/7/17 EQ-767, TU-770, EX-761
Gardening unit sometime in 2018
Valued Contributor
Posts: 2,152
Registered: ‎08-13-2007
0

Re: Paying taxes


SteelerNYC wrote:

JimBo99 wrote:

Good Morning crew.  

 

Wanted to throw my situation out there and see what ya'lls thoughts/opinions were.

 

Looks like I owe about $4k this year to ole uncle sam.  Gonna get $700 back from the state, though.   I've got a few options. 

 

1. Pay with my NFCU CashRewards.  The fee is 1.87%.  and would get 1.5% back from the card.  Interest rate on the card is 15.65

2. Pay with a NFCU CLOC check.  Interest Rate is 16.9 (have 15k avail right now).  

3. Apply for a PLOC  for the amount (hope for approval and lower rate)

 

Overall utility of CC's is currently 10%  I will apply the state money directly to the balance as soon as I get it.  I make about $80k/yr.   I will be pretty aggressive at paying it off regardless, I just don't have that much cash lying around, unfortunatly.  I'm leaning towards option 2, because of utilization mostly, to avoid a new HP of a new loan. Not planning on seeking any credit for a while maybe a car toward the end of the year, house next summer.    

 

If y'all need more info, just ask.   Most current scores are below. 


FYI: A payment plan with the IRS amounts to 6% APR plus a small transaction fee.

 

I went that route because 1) interest on my credit cards is significantly higher 2) it won't affect utilization


This is your best option. Just pay it downn as quickly as you can. The Fed is pretty easy to work with for the most part.

Ray

** Every Card has a Job, and Every Card does its Job **
Established Contributor
Posts: 679
Registered: ‎01-15-2017
0

Re: Paying taxes

A word of caution. IRS at $10,000 always puts a tax lien on you. Under $10,000 and its up to them however I have seen $500 tax liens before. 

Valued Contributor
Posts: 1,237
Registered: ‎01-31-2008
0

Re: Paying taxes

Actuaslly the IRS 6% plan is the best suggested. A decade ago I owed $16,000 in taxes and thought I was going to be in big trouble. The IRS was nice as can be and set up a plan to pay it off over 2-3 years. Did not show up on my credit reports so no negative effect on utilization.

 

 

Established Contributor
Posts: 679
Registered: ‎01-15-2017
0

Re: Paying taxes

Payment plans never show on credit reports just the lien they file when you get one or lien if don't pay

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