Reply
New Member
Posts: 4
Registered: ‎08-06-2012
0

Best course of action - CC balances

Hi all-

 

We need to get to a 660 and fast! We need to get some $$ out of our home (owe 155k, valued at 196k) to make some emergency repairs. Need about 14k, so we're out of the 80% LTV range.

 

We'd been in the 640 range until some inquiries, a new auto loan, and some high utilization of our CC's got in the way. There have been NO lates in 18 months, but nonetheless our scores have dropped to 615 and 595. I think it's primarily because of our CC's. Right now, I have the following:

  • Card 1: 2000 CL - O Balance (newer card, super-low rate, bought it for emergencies)
  • Card 2: 500 CL - 410 Balance
  • Card 3: 300 CL - 265 Balance
  • Card 4: 250 CL - 200 Balance (High interest, but longest card on books. About to be socked with a $90 annual fee)

Just wondering what I should do on these. Paying them completely off is not an option, but I'll have about $200 to pay them down. Should I:

  1. Transfer the balances to Card 1 - I'd be a little under 50% utilization on that card, but at 0% on the others. Interest-wise, this makes the most sense. APR is less than half of other cards.
  2. Pay off Card 4 - I'd have 2 cards at 0% utilization, and 2 at close to 75%
  3. Pay a little to all 3 -  I'd still have one at )% and could get the others down a bit.
  4. Rob a bank - I kid, I kid

I know the magic formula is to have one at <10% and the others at 0%. But given my circumstances, I'm hoping for the biggest bang for my buck, so to speak.

 

Thanks in advance.

Moderator
Posts: 16,243
Registered: ‎07-14-2009
0

Re: Best course of action - CC balances

Locking the thread. An identical post is here.

 

PlLease don't post across multiple boards.

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.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

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.