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Almost_Tactful
Posts: 8
Registered: ‎07-16-2009
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Trying To Iron Out The Details and Use Any Tools I Can To Make The Most Of My Payoff....

[ Edited ]

Hello everyone :smileyhappy: I am currently getting ready to dump about $3200 and pay off all my credit cards so I can lower my monthly bills and get my credit back up to where it was before I lost my job about a year ago. So I am getting ready to pay off a Capital One and three cards from Chase. Now with two of the cards from Chase I agreed to close the accounts and just pay them automatically every month for a set amount and they agreed to drop the interest rate down to like 4 or 5%. Well I am getting ready to pay them off and I was wondering what it takes to get a PFD (if it is even what I'm looking for)? I had a couple of late payments that I was in constant contact with them about but they didn't care and docked me anyway, and now I figured since I'm paying them off they could remove them in return. I've been in contact with them over the last few weeks and they are saying they can't remove the late payments because it would mess with their integrity (like a cc company has any to begin with)....Anyway, so I figured I'd come here since you all know my rights a lot better then I do. Is there anything I can do to stand up to these bullies or am I just out of luck and have to wait for it all to clear itself out.

 

One more thing, right now I have a pretty low score of between 585-605 and I'm curious where my score will jump to (approx) if I pay them all off which would leave me with nothing more then student loans (I'm still in school) and a car payment. I just want to get where I was a year ago and be back in the 720-730 range.

 

Thanks in advance!!!!

 

 

 

07/10/2009 - TU: 597 - EX: 585 - EQ: 606

Message Edited by Almost_Tactful on 07-16-2009 04:48 AM
Message Edited by Almost_Tactful on 07-16-2009 04:48 AM
Frequent Contributor
PayingTheBills
Posts: 353
Registered: ‎01-29-2009
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Re: Trying To Iron Out The Details and Use Any Tools I Can To Make The Most Of My Payoff....

[ Edited ]

No other baddies other than the late payments on the 2 CC accounts?

 

Right now those two closed accounts are KILLING your score, because your "available credit line" on each card is set to $0 once the card is closed, so its very likely that overall you're looking at >100% utilization even after you add you other two cards in.

Can't say that for sure though without seeing your balances and credit limits for each card.

 

As far as the late payments go, after two years they won't affect your score nearly as much.  Feel free to pester Chase to see if they give in, but they aren't likely to do a PFD.  Maybe a GW if you're persistent enough.  Are we talking about 30, 60, or 90 days lates? How many of each and when were they?

 

Like I said, those closed accounts are hurting your score a lot, since your utilization counts for 35% of your score overall.  So get those closed accounts paid off, and then get your other cards to <9% utilization each, and you should see a big jump in your scores.

Message Edited by PayingTheBills on 07-16-2009 09:31 AM

Starting Score: 540 EQ 517 TU on 11/17/08
Current Score: 668 EQ 715 TU
Goal Score: 760 EQ 760 TU


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New Member
Almost_Tactful
Posts: 8
Registered: ‎07-16-2009
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Re: Trying To Iron Out The Details and Use Any Tools I Can To Make The Most Of My Payoff....

Hey Paying, thanks for the reply :smileyhappy: I'm looking at my credit report right now and on one chase I have one 30 day and one 60 day, the second chase has one 30 day, and the Chase I'm keeping is clean. The only other late payment I'm showing is on the Cap one I am also keeping which is a 30 day from Feb of 08 and a 60 day from Aug 08 when I ran into real hard times. So on my entire report the only thing I am seeing is a total of is 3 30's and 2 60's with the most rescent being 8 months ago. I also have a Kay's Card that I've had for about 10 years now that I've never been late on and I just got Ford to remove a late payment from 2 years ago on a car loan that was an error. So as it sits right now on the two closed cards I have a balance of about $2000 and on my open cards I have a balance of $1000, so if I understand this right I'm being looked at right now as having $1250 available and $3000 used on major credit cards? Does my Kay's card help at all since my limit is $1800 and it's empty?

 

Thanks again!

 

 

Frequent Contributor
PayingTheBills
Posts: 353
Registered: ‎01-29-2009
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Re: Trying To Iron Out The Details and Use Any Tools I Can To Make The Most Of My Payoff....

Assuming your Kay's account is open, it absolutely counts, and it's helping your ratio a great deal. :smileyhappy:

 

So your current utilization % overall is ($3000) / ($1250+$1800) = 98.4% util, which FICO considers "maxed."

If you can get that $2000 balance on your closed accounts paid off, your util will drop to 32.8%, which should bump your scores a few dozen points, but its very hard togive an accurate prediction.

Ideally, you'd want to get that other Chase card to under 9% AND pay off those two closed accounts.

Most "FICO High Achievers (scores 760 and above)" average about 8% in total utilization.

 

Keep working on GWing those late payments, but thankfully some of them are 30 day lates, which are not as bad.  If you're persistent enough, maybe some can get removed.  In the meantime, take heart, you're on the right path now, and after all those late payments cross the two year mark, they will probably have very little impact, and they will have less and less impact as more time goes by.

 

Just stay current from here on out and you should be in the 700 club in no time. :smileyhappy:


Starting Score: 540 EQ 517 TU on 11/17/08
Current Score: 668 EQ 715 TU
Goal Score: 760 EQ 760 TU


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New Member
Almost_Tactful
Posts: 8
Registered: ‎07-16-2009
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Re: Trying To Iron Out The Details and Use Any Tools I Can To Make The Most Of My Payoff....

Awesome :smileyhappy: Well here in about 3 more days they will all be paid off completely :smileyhappy: and I can't wait. I was really hoping to get the late payments removed but as much as I beg, plead, and yell at Chase it's not helping....but thanks for the information I guess I'm not as bad as I was thinking :smileyhappy: So now you seem to know your stuff, when using a credit card for like day to day stuff and then paying it off at the end of the month, does it help? Like if I use my card to get my gas and then at the end of the month pay the card off will that help or hurt my credit? Once they are paid off I don't plan on using them again like I did in the past. It'll be a, "Do I have the money for this? Yup. Alright, I'll put it on the card and pay it off when the statement comes in." Is that a good approach or should they just sit in the drawer and stay empty all the time?

 

Thanks again!!!

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LilMirth
Posts: 3,091
Registered: ‎08-09-2008
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Re: Trying To Iron Out The Details and Use Any Tools I Can To Make The Most Of My Payoff....

You can certainly leverage your credit cards to continue your good credit history without going into debt. These days, credit is a use it or lose it game. You can sock-drawer them, but you'll need to make sure that they don't go completely inactive by using them and PIFing at least every other month. Ideally, you'll want to let a very small balance (say, $5) report on ONE card. One thing that you might consider is putting a recurring monthly bill on each card-- a bill that is PIF'd every month. Perhaps keep one card in your wallet for your daily purchases that you PIF every month--effectively using your credit card as a debit card.

 

Congrats on getting those cards paid off! Feels good, doesn't it? 

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New Member
Almost_Tactful
Posts: 8
Registered: ‎07-16-2009
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Re: Trying To Iron Out The Details and Use Any Tools I Can To Make The Most Of My Payoff....

Thanks for the reply Lil :smileyhappy: so really the whole PIF is key and if you do keep a balence make it something silly like $5. I can do that :smileyhappy: I just want to get my credit as high as possible (like anyone else) so when I go to get the big stuff like a house or a car they don't bend me over. Let me ask you yet another question. Chase jacked the living crap out of my cards interest rate to something stupid like 32% what can I do to get that to a reasonable amount? I mean is that even legal, I know my credit is no where near perfect but 32%, really?

 

07/10/2009 - TU: 597 - EX: 585 - EQ: 606

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LilMirth
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Re: Trying To Iron Out The Details and Use Any Tools I Can To Make The Most Of My Payoff....

Sadly, yes it's legal, and yes... they seem to love to do it. You can call and ask for an APR reduction, but don't hold your breath-- it doesn't seem like most people are having much luck with Chase ratejack recons these days. So, the best protection against RJ is to PIF. Don't carry a balance and the APR won't matter.

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New Member
Almost_Tactful
Posts: 8
Registered: ‎07-16-2009
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Re: Trying To Iron Out The Details and Use Any Tools I Can To Make The Most Of My Payoff....

There's that PIF again lol :smileyhappy: Cool, I'll carry that little $5 bal on my other card with a normal rate and when my credit goes up I'll keep bugging Chase to stop being trolls. Thanks for all the help everyone :smileyhappy:
Frequent Contributor
PayingTheBills
Posts: 353
Registered: ‎01-29-2009
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Re: Trying To Iron Out The Details and Use Any Tools I Can To Make The Most Of My Payoff....

[ Edited ]

One of the things that is helping my score according to my ScorePower reports and TU FQM reports is "You've shown recent use of a credit card."

I have 3 cards, two credit and one retail, and I try to rotate which one reports a balance of 1% or so.

 

Something to keep in mind that you can still PIF AND let a small balance report by knowing your statement date. Usually your statment date is a week or so after your previous payment due date, so let a small balance report, and then PIF before they charge you interest a few weeks later. :smileyhappy:

 

You're on the right path, definitely keep us updated once your new balances update and you get your new FICO's. We love hearing about that stuff. :smileyhappy:

Message Edited by PayingTheBills on 07-18-2009 01:57 PM

Starting Score: 540 EQ 517 TU on 11/17/08
Current Score: 668 EQ 715 TU
Goal Score: 760 EQ 760 TU


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