TRANSunion: 654 / Equ: 674. POOR DECISIONS

[cashm0ney]

Hello everybody, I just realized how many mistakes did I make before reading anything about credit scores, so I am a bit confused, and need some help from experts like you!

So my two scores are : 654 (trans) and 674 (equ)

I figure that to lower my utilization I will just open few new cards and it will just take care of it by itself, however I did not know that any credit card inquires do lower you credit, so this is what I got, and this is my strategy, would I guys agree, or have something better in mind?

I have opened two new credit cards, Chase freedom (1300 limit) and Chase slate (900 limit) - they are both empty & activated.

My current cards are:

Express Fashion ( 384 / 900 )

Discover CC ( 2275 / 2500 ) 0.0 apr till 10/2013

Walmart ( 811 / 900 ) - 19.9 - 23.3 apr

Chase freedom ( 0 / 1300 ) 0.00apr for 15 m/o

Chase Slate  (86 / 900 ) 0.00 apr for 15 m/o

And now, the million dollar question is... what do I do?

Transfer some of walmarts balances to chases' cards, and pay off disvovery as soon as the apr hits?

Or transfer balance of walmarts & discovers cards to Chases so I can maybe try to re-organize the balances so each card is not affected fully?

I really do not know what to now?

All suggestions are appreciated!

Thanks!!

[txmomma26]

I'd keep Discover's balance right where it is and pay it down as soon as possible. The thing that's hurting most is any reported balance showing more than 80-90% utilization is scored as "maxed out", which is never a good thing.

Before you transfer any balance, I would look at the various fees associated and make sure that whatever balance transfer fees aren't going to cost you more than paying the balance down on the original card.  I believe that Chase Slate is more BT friendly than Freedom, but I haven't ever done it, so I'd wait for someone a bit more experienced to chime in.

[cashm0ney]

Thank you sir.

Ill deff look into transfer options, and check if they are any fees.

Any one else have any suggestions?

[kblatt]

As txmomma said above, I'd check the balance transfer fees and xfer at least 50% (if not more) of your Walmart balance to a 0 APR card.  I'd recommend splitting them between your Chase Slate and Freedom cards pending any outrageous fees.

Then, you'll need to pay off your Discover as quickly as possible.  This will accomplish two things:

1) Reduce your APR so you're paying over-all less interest

2) Reduce your util on a per-card basis 

#2 is the important one when it comes to your credit score.  When you have 90% or more of your credit limit taken up on a given credit card, your score drops because the CB sees that card as "maxed out".  You don't want to have one, let alone two cards with 90%+ balances at any given time.  Right now on your Discover and Walmart card you're sitting at 91% and 90% respectively.  These need to drop below 80% as quickly possible to start, and ideally eventually below 30% when you have the available funds.

#1 is important becuase in the long run you'll save on interest if you can manage to get the balances paid down before the 15 month no-interest timeframe is up.

Reducing your utilization will be the quickest way to see a jump to your score.  WIthout knowing your entire CR it's hard to say by how much, but a lot of sites have score planners which will tell you how increasing your util, and reducing the amount of maxed our cards will help.

[fishbjc]

Pay down or off Walmart. A score is really not that imp less ur looking for credit. Saving $$ can be just as important. Transfer to zero percents if avail. Pay down the zero % interest cards before the zero expires. Stop aping.