Just got 30k what do I keep n what do I pay

[Anonymous]

Hi I've been reading this for along time started with less than 580 score in 08 and  bought a house in 09, am currently in college and my score is about 620. I want to bring it up to the 700 club. I just got a windfall of 30k and need to use it correctly. Please help I want to get it right first time or at least best I can.

Total credit card debt $17,700

includes Motorcycle: revolving card $5,500 owed

car: 18% 6400 owed

one closed account by company Chase ($2500)

bankruptcy 2005,

Mort 164k no lates

Open card utilization88%   

percent of on time payments100%

Average age open cards1yr 3 months (out of work picked up 3 cards, 2 months ago Sears, JCPenny & Walmart -store cards only) 

Oldest trade line3yrs 5 months (cap 1, 5k limit)

Total Accounts25 (16 open, 9 closed)

Hard Credit pulls8

Derogatory Marks1

Student loans$9,638 (still in college)

This is what I was thinking of doing:

pay and close all small and recent cards and accounts

Cap1 is at 10%, the only low card, 5k limit (all rest 21-30%)

Bike is at 12% not sure to pay off all or keep small balance as it is revolving

car at 18% same not sure if I should keep small balance but it is term loan

Chase the closed account is at 30% should I negotiate a smaller pay off or just pay it

should I keep any of the low cards and try to do better with them and how many should I have in total?

Would most appreciate any suggestions and advice.

Also, we have a credit union and am planning to put money in there and pay from that account and when and if my score goes up, try to start using them for any financing or credit cards we may need.

Thank you.

[casmith1980]

 

pay and close all small and recent cards and accounts  Don't close the accounts!!!  They are helping your AAoA. 

Cap1 is at 10%, the only low card, 5k limit (all rest 21-30%)  Pay all cards except your capital one to 0%.  get your capital one to roughly 3-5%

Bike is at 12% not sure to pay off all or keep small balance as it is revolving

car at 18% same not sure if I should keep small balance but it is term loan

Chase the closed account is at 30% should I negotiate a smaller pay off or just pay it  I would just pay this off since you have the money.  If there's any negative information on it, ask for a PFD. 

should I keep any of the low cards and try to do better with them and how many should I have in total?  I would keep all the low cards open, but sock drawer them.  They will report 0% and add to the AAoA.

I know that there are a lot more experienced people on the board that will be able to give you additional information.

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[Anonymous]

Thank you this is a good start, just want to pay off everything now but I know I need to do it correctly.

[Anonymous]

AAoA: I think the new cards are reducing my AAoA because 3 cards were opened very recently and some others maybe 6 months ago, do you think I should still keep them open?

[casmith1980]

if they are paid in full, then it wouldn't hurt to keep them.  even if you close them, I believe their opening dates will still be taken into account.

[kjm79]

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@Anonymous wrote:

AAoA: I think the new cards are reducing my AAoA because 3 cards were opened very recently and some others maybe 6 months ago, do you think I should still keep them open?

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Closing the new accounts will not help you AAoA.  You've already opened them and they are on your reports and will continue to be on the reports for 10 years from the date they are closed.  So if your reason to close them is to help your AAoA, leave them open.  Now, if any have annual fees, keep the card open until the fee comes due, then call and ask them to waive the fee or close the account. The only thing that will hurt your AAoA now is if you open NEW accounts or you somehow lose one of your older accounts.  

[Booner72]

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@Anonymous wrote:

Hi I've been reading this for along time started with less than 580 score in 08 and  bought a house in 09, am currently in college and my score is about 620. I want to bring it up to the 700 club. I just got a windfall of 30k and need to use it correctly. Please help I want to get it right first time or at least best I can.

Total credit card debt $17,700

includes Motorcycle: revolving card $5,500 owed

car: 18% 6400 owed

one closed account by company Chase ($2500)

bankruptcy 2005,

Mort 164k no lates

Open card utilization88%   

percent of on time payments100%

Average age open cards1yr 3 months (out of work picked up 3 cards, 2 months ago Sears, JCPenny & Walmart -store cards only) 

Oldest trade line3yrs 5 months (cap 1, 5k limit)

Total Accounts25 (16 open, 9 closed)

Hard Credit pulls8

Derogatory Marks1

Student loans$9,638 (still in college)

This is what I was thinking of doing:

pay and close all small and recent cards and accounts

Cap1 is at 10%, the only low card, 5k limit (all rest 21-30%)

Bike is at 12% not sure to pay off all or keep small balance as it is revolving

car at 18% same not sure if I should keep small balance but it is term loan

Chase the closed account is at 30% should I negotiate a smaller pay off or just pay it

should I keep any of the low cards and try to do better with them and how many should I have in total?

Would most appreciate any suggestions and advice.

Also, we have a credit union and am planning to put money in there and pay from that account and when and if my score goes up, try to start using them for any financing or credit cards we may need.

Thank you.

---

Trying to do better won't do any good.  As Yoda says, "Do or do not, there is no try."   I don't know about you, but I know 30K doesn't come along in one chunk every day.

If you can't manage credit cards, and some people simply can't, then you should close them.  If you think there is a chance (and it sounds like you think there is) that you could get right back to this kind of a situation, then do yourself a favor and remove all temptations.  Who cares about AAoA if you are too tempted to spend using credit cards.