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Some Advice on handling CC Balances.

Frequent Contributor

Some Advice on handling CC Balances.

I have three accpunts.

Credit Union CC: 1200 balance; CL: 1500
Cap1: 175$; CL: 300
Line Of Credit: 450$; CL: 500

These are high. I've been working on baddies and I'm happy to say I'm almost done. I have one more left. Score will get better. But im ready to buckle down with these accounts. Which accounts should I take of first?

Thanks.
Message 1 of 5
4 REPLIES
Frequent Contributor

Re: Some Advice on handling CC Balances.

The one with the highest interest rate is always a good start.
Starting Score:TU:791(Dec3), EX:783, EQ:000
Current Score: TU:786(Aug9), EX:776, EQ:782 (Aug8)
Goal Score:820 across all boards






If all pork chops were perfect, we wouldn't have hot dogs! -Steven Universe
Message 2 of 5
Established Contributor

Re: Some Advice on handling CC Balances.


EricHeisenberg wrote:
I have three accpunts.

Credit Union CC: 1200 balance; CL: 1500
Cap1: 175$; CL: 300
Line Of Credit: 450$; CL: 500

These are high. I've been working on baddies and I'm happy to say I'm almost done. I have one more left. Score will get better. But im ready to buckle down with these accounts. Which accounts should I take of first?

Thanks.

Essentially three things you can do:

 

1) If you want the quickest benefit to your scores, work on each of these simultaneously to get the utilization down 

2) If you want to save the most on interest, pay off the highest interest rate balances first

3) If you want the quickest sense of accomplishment, pay off the lowest balances first. (also really good for your scores once cards start reporting $0.) I'd go with this option, personally. You don't have so much debt that the difference in interest would be that substantial if the smaller balances happen to be at better rates and it'd feel good to throw $175 at that Cap1 and have your first card paid completely off. 

Ch 7 Discharge May 2015: EQ 588/TU 552/EX 570
Nov 2017: EQ 683/TU 660/EX 668 w/ 24% CC util reporting
Discover/Target/NFCU CLOC/NFCU Cash Rewards/PenFed Power Cash Rewards - $46k total revolving
Message 3 of 5
Frequent Contributor

Re: Some Advice on handling CC Balances.

Steeler. You read my mind on the last option. I'll do that. Thanks.
Message 4 of 5
Established Member

Re: Some Advice on handling CC Balances.

I know everyone's situation is different, but someone wrote up this little guide. I like it, I use it... although my balances are not going down as fast as I like. (But that is on me, I need better self discipline)

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Credit-Card-repayment-strategy/m-p/4432567#M4...

Hope it helps.


7/1/2017 FAKO Score by: CreditWise (Cap1) 645.

7/22/2016 Scores by MyFICO: Exp - 595 TU - 607 EQ - 621
7/20/2016 Scores by CCT: Exp - 595 TU - 597 EQ - 613 (SOME ITEMS DIDN'T UPDATE)
6/20/2016 Scores by CCT: Exp - 586 TU - 592 EQ - 603
Starting FAKO Scores were all low 500's Aug 2015.
Message 5 of 5