In the last year I have purchased a car at 2.5%, obtained a Discover card, a Cap One Platinum MC (NOT Quicksilver!!!!!!) and raised my FICO score 150 points.
I went from 720 down to 580 (after car purchase and maxing out the Discover and Cap One) back up. In Feb I had a 565......today I have a 695 FICO.
I have found that setting up automatic payments for the min due helps.....I can't be late and I can't forget. (ADHD)
And I put extra each month on the cards to help bring it down. Whether it's $10 or $75..each bit helps.
The forecast calculators show me above 700 by October. And at about 750 by March.
I cut my spending on things like the fast food and the eating out......and have lost about 20lbs in the last 6 months alone just from that!!!!!
Within a year, I will have bills down to less than one paycheck. Learning to live below my means is an adjustment, but I found a local Credit Union that pays 2.0% APR on an account that has $2500 or more in it for an average monthly balance. I opened this account today with $2510.
That money can sit there and earn ME money while I pay off debt, and then I can fill it up and transfer to the 2.5% account at 7500 and the 3% at 10,000.
My projected savings six months from now is $800/month, right into that savings account. I'm due for a raise at work in Dec, which will bump that up a bit. I'm not using the CC's now, and not feeling any pain. They can sit there open, with a tank a gas here and there to keep the accounts current and open. (One tank of gas for me in my little car is less that a monthly min payment so I can set the accounts to pay the "full balance" once I get them to zero and not have to adjust the budget really)
It's been a journey but well worth it.
I'm looking at buying a new home in the next 5 years, with a hefty down payment on it and a killer credit score. Not bad for a guy pushing 40 eh?
