I could really use some advice

[Anonymous]

Basically, I have some goals I'd like to accomplish NEXT year by working towards them this year.

The Goals:

-Trade in my car towards a new, better car (Dodge charger preferably)

-Get out of my apartment and rent a home

-Begin saving to purchase my own home after a year or two renting

-Have 30k Available credit at all times in case of emergency 

-Have my loan paid off well before the 2 year mark

I currently have, in order of oldest to newest:

Kay Jewlers: $300 Limit ($180 owed)

Capital One QS1: $2550 Limit ($2340 Owed)

Gamestop: $2000 Limit ($217 oWED)

Chase Freedom: $2100 Limit ($908 Owed)

Huntington Voice: $1000 Limit ($635 Owed)

Victorias Secret: $250 Limit (0 Balance)

Capital One Platinum: $2000 Limit ($391 Owed)

American Eagle Store Card: $150 Limit (never used, waiting for this to close)

Discover IT: $1000 Limit ($195 owed)

Amazon Store Card: $1100 Limit (wanting to build this to 10k by December) ($614 owed, wife is paying this off for the financing, $175 a month, not concerned about this)

American Express Everyday Card: $1000 Limit ($718 owed)

-Note: I make $78,000 a year but a few emergencies came up at the same time involving my sons health, our car, paying the medical collection off and missing a week and a half of work so having to use the cards for bills. this is why my util sucks.

Car Loan: $17k owed still on a 72 month contract. Just finished the first 12 months.

Personal Loan: $5686 Still Owed on a 24 month contract. About to make the 5th payment at the beginning of May.

On 4/18/16 I paid a medical collection off in exchange for removal from my credit report. Its just a little over a year old

That was my only baddie.

Ive never had a single late payment on my cards/loan or car payment.

I do not know how to calculate my overall util, but I want to get everything paid down together.

I have a few questions that, if answered, would really help me get on track to what I need to do.

Im able to pay $750 a month minimum on the cards monthly, but I've been paying between $1200-$1500. I keep my minimum at $750 though, just in case something comes up and I cant pay more than that.

I WANT to be at 20% utilization by July, so i've put my regular spending on hold until this happens.

Now, my questions:

1) As the collection is being removed and on all my CLI denial letters it states its due to having a collection on my report, will this make my score go up and possibly pave the way for credit limit increases in the future?

2) Should I focus on paying the loan off first instead of applying more payments to the car?

3) Which cards should i put the most focus on? (obviously capital one because its the highest balance with the worst interest rate but which order should i go in pretty much?)

I currently have these scores:

647 Equifax

636 Trans Union

644 Experian

Id really REALLY like to have 700's across the board by December if possible, but if not, at LEAST by May 2017 when I go try to trade my car in.

4) Will lowering my util to 5%, having this collection removed, aging my credit lines without applying for anything else, getting CLI's, and maintaining a perfect payment history allow this to be POSSIBLE?

I am aware everyone's profiles are different. But I just want to know if my goals are realistic.

Any advice is MUCH appreciated.

Im 20 and I have an 18 month old son and a wife that I am trying to make everything perfect for.

Thank you.

[Anonymous]

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@Anonymous wrote:

Basically, I have some goals I'd like to accomplish NEXT year by working towards them this year.

The Goals:

-Trade in my car towards a new, better car (Dodge charger preferably)

-Get out of my apartment and rent a home

-Begin saving to purchase my own home after a year or two renting

-Have 30k Available credit at all times in case of emergency 

-Have my loan paid off well before the 2 year mark

I currently have, in order of oldest to newest:

Kay Jewlers: $300 Limit ($180 owed)

Capital One QS1: $2550 Limit ($2340 Owed)

Gamestop: $2000 Limit ($217 oWED)

Chase Freedom: $2100 Limit ($908 Owed)

Huntington Voice: $1000 Limit ($635 Owed)

Victorias Secret: $250 Limit (0 Balance)

Capital One Platinum: $2000 Limit ($391 Owed)

American Eagle Store Card: $150 Limit (never used, waiting for this to close)

Discover IT: $1000 Limit ($195 owed)

Amazon Store Card: $1100 Limit (wanting to build this to 10k by December) ($614 owed, wife is paying this off for the financing, $175 a month, not concerned about this)

American Express Everyday Card: $1000 Limit ($718 owed)

-Note: I make $78,000 a year but a few emergencies came up at the same time involving my sons health, our car, paying the medical collection off and missing a week and a half of work so having to use the cards for bills. this is why my util sucks.

Car Loan: $17k owed still on a 72 month contract. Just finished the first 12 months.

Personal Loan: $5686 Still Owed on a 24 month contract. About to make the 5th payment at the beginning of May.

On 4/18/16 I paid a medical collection off in exchange for removal from my credit report. Its just a little over a year old

That was my only baddie.

Ive never had a single late payment on my cards/loan or car payment.

I do not know how to calculate my overall util, but I want to get everything paid down together.

I have a few questions that, if answered, would really help me get on track to what I need to do.

Im able to pay $750 a month minimum on the cards monthly, but I've been paying between $1200-$1500. I keep my minimum at $750 though, just in case something comes up and I cant pay more than that.

I WANT to be at 20% utilization by July, so i've put my regular spending on hold until this happens.

Now, my questions:

1) As the collection is being removed and on all my CLI denial letters it states its due to having a collection on my report, will this make my score go up and possibly pave the way for credit limit increases in the future?

2) Should I focus on paying the loan off first instead of applying more payments to the car?

3) Which cards should i put the most focus on? (obviously capital one because its the highest balance with the worst interest rate but which order should i go in pretty much?)

I currently have these scores:

647 Equifax

636 Trans Union

644 Experian

Id really REALLY like to have 700's across the board by December if possible, but if not, at LEAST by May 2017 when I go try to trade my car in.

4) Will lowering my util to 5%, having this collection removed, aging my credit lines without applying for anything else, getting CLI's, and maintaining a perfect payment history allow this to be POSSIBLE?

I am aware everyone's profiles are different. But I just want to know if my goals are realistic.

Any advice is MUCH appreciated.

Im 20 and I have an 18 month old son and a wife that I am trying to make everything perfect for.

Thank you.

---

Consider upgrading the Cap One Platinum to a QS card, then combining the QS into the Platinum (once the QS is paid off), after the next round of CLI's on them. Which brings up the question - when was the last time you got CLI's on your Cap One cards?

Use the "debt snowball" method to get your balances down quickly. I would just work smallest to largest balance.

For the installment vs auto loan - pay whichever has the higher interest down first.

[Pway]

I agree with the advice Norman has given you.  One thing that stick out to me is that why not stay in the apartment.  If you are planning to buy a house in a year or two, I would stay where you are and save that extra money.  

Renting a house:

Lights, Gas, Water, etc.

I am not for sure what you are paying in your apartment but typically those things are included in the rent.  Plus moving cost, down payment, first and last month rent some times the landlord requires up front.  Security Deposit.  I would stick it out and stay where you are currently to save. 

[Anonymous]

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@Pway wrote:

I agree with the advice Norman has given you.  One thing that stick out to me is that why not stay in the apartment.  If you are planning to buy a house in a year or two, I would stay where you are and save that extra money.  

Renting a house:

Lights, Gas, Water, etc.

I am not for sure what you are paying in your apartment but typically those things are included in the rent.  Plus moving cost, down payment, first and last month rent some times the landlord requires up front.  Security Deposit.  I would stick it out and stay where you are currently to save. 

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I tend to agree - though markets vary greatly, apartments tend to be quite a bit cheaper overall. Unless the apartment life is simply unbearable (and that may indeed be the case), I would consider staying put until you are ready to purchase a home.

[Anonymous]

My capital one platinum has already been PC'd, but it still shows up on the statement as platinum for some reason, so i just keep referring to it as platinum.

But if i pay the smaller one off and the larger one down to say, $1000, i should be able to combine them?

And okay, the snowball method.. I can do that then. Thank you.

Oh, the apartment is unbearable at this point. Our 18 month old cries a lot and our neighbors bang on our door complaining. Plus, we pay $850 a month for a 2 bedroom apartment when we can pay between $750-$900 for a 3 bedroom home in my wifes mothers neighborhood. Its very nice surprisingly. Otherwise yeah, we'd stay here

As for the credit limit increases:

QS1 had an increase in the beginning of december

PLatinum (its a QS) had an auto one yesterday

[Anonymous]

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@Anonymous wrote:

My capital one platinum has already been PC'd, but it still shows up on the statement as platinum for some reason, so i just keep referring to it as platinum.

But if i pay the smaller one off and the larger one down to say, $1000, i should be able to combine them?

And okay, the snowball method.. I can do that then. Thank you.

Oh, the apartment is unbearable at this point. Our 18 month old cries a lot and our neighbors bang on our door complaining. Plus, we pay $850 a month for a 2 bedroom apartment when we can pay between $750-$900 for a 3 bedroom home in my wifes mothers neighborhood. Its very nice surprisingly. Otherwise yeah, we'd stay here

As for the credit limit increases:

QS1 had an increase in the beginning of december

PLatinum (its a QS) had an auto one yesterday

---

In order to combine them, the one that will close has to be paid to $0, and both must be at least 6 months old. QS1 is the one you want to close out to eliminate the annual fee. I would look at combining them in another 6 months when you should be able to get another CLI on each one.

I hear ya on the apartment thing - makes a lot of sense. Out here houses are about 50% higher than apartments for the same space.

[Anonymous]

---

@Anonymous wrote:

My capital one platinum has already been PC'd, but it still shows up on the statement as platinum for some reason, so i just keep referring to it as platinum.

But if i pay the smaller one off and the larger one down to say, $1000, i should be able to combine them?

And okay, the snowball method.. I can do that then. Thank you.

Oh, the apartment is unbearable at this point. Our 18 month old cries a lot and our neighbors bang on our door complaining. Plus, we pay $850 a month for a 2 bedroom apartment when we can pay between $750-$900 for a 3 bedroom home in my wifes mothers neighborhood. Its very nice surprisingly. Otherwise yeah, we'd stay here

As for the credit limit increases:

QS1 had an increase in the beginning of december

PLatinum (its a QS) had an auto one yesterday

---

The only other thing I would mention is that I would wait until after the home purchase to get that shiny new car - assuming you're not getting **bleep** on interest currently.

[Anonymous]

Because I had scores in the 590's when I got approved for my car, as well as lower income and no car experience, my interest rate on my car is really high.

TBH, i cant remember the number, but ive had it for a year now and plan to trade it at the 2 year mark. 

The original price on my car was $12,500, but Ill end up paying $23,500 if i pay every single payment and not a penny more. Its terrible, and my car is only valued at $7,500. I have a much better job now, my credit is loads better and i have car/loan experience now so id really like to get something better.

And okay, thank you. The newer card will be open 6months next month, so Ill just wait til I get an increase from the older card to combine them.
I was hoping id be able to combine them, instead of stressing over two cards, so thats really good to know.