What is my best action? With data

Gidgetmom · ‎01-30-2017

I have been reading through these forums for months now. I have learned so much from all of you. Thanks for sharing your experiences with me!

Okay, here we go...I paid for my daughter's wedding last May by using my new credit cards. Big mistake...I know now! Once paid off, will keep 1 reporting below 9%, and all others 0. I get now...I just need to get there.

Goal: Purchase a new truck later this year, Sept or later.

Current Scores: EX 670, TU 671 EQ 628. All myFICO scores Jan/2017

AAoA: 12yr 9 mo. Total Length: 24yr 11mo total

Utilization: overall 69% reported Jan 2017. Perfect payment record (pay all majors twice a month...rarely charge on Bealls and pay in full same day or same week if I do use it). I picked up the Venus card with SCT just to help with Utilization

Credit One 46%. 293/650. Open 1 yr, 3 mo

Quicksilver One. 23%. 342/1550. Open 1 yr, 3 mo

Venture One 90%. 4475/5000. Open 11 mo

Chase SWRR. 87%. 2607/3000. Open 11 mo

Bealls Store 0/500 Open 1 yr, 3 mo

Venus Store 0/500 Open 2 mo

Total Credit Lines 11,200.

I have 14 accounts on EX and TU with 9 Open. EQ has 13 accounts with 8 open. 3 rehabbed student loans with amounts owing larger than original balance, 2 paid medical collections on EX & TU and 3 paid medical collections on EQ. 2 paid in full; One settled in the last three months. TU is showing a paid (2015) tax lien. EX and EQ removed the lien with a withdrawal of tax lien from IRS. TU did not. A paid installment loan is showing 2 - 30 day lates in 6/14 and 10/14 ( this was with a Credit Union to which I no longer belong)

I have budgeted to pay it all off by November/2017 (with exception of student loans)

the current balance on the Quicksilver is up to 1006 right now, but will be paid back to 23% before it reports in Feb. I'm paying off a collection BEFORE it hits my report

The extra inquiries were from applying for balance transfer cards to alleviate some interest and to replace the Credit One card. Denied for obvious reasons (although. It wasn't obvious to me the time).

Looking for advise on best way to accomplish pay off while maximizing my score points. I have considered snowball and avalanche...while they are financially sound, they do not take into consideration ways to maximize points. Any ideas on how to clean up record, pay down debt, or just helpful suggestions appreciated. Also, should I be worried about adverse actions due to high balance, inquiries? Have stellar payment record with 3x minimum payments each month, but short history with revolvers.

Thank you in advance!

Anonymous · ‎01-30-2017

Gidgetmom wrote:

Credit One 46%. 293/650. Open 1 yr, 3 mo
Quicksilver One. 23%. 342/1550. Open 1 yr, 3 mo * actually 1,006
Venture One 90%. 4475/5000. Open 11 mo
Chase SWRR. 87%. 2607/3000. Open 11 mo
Bealls Store 0/500 Open 1 yr, 3 mo
Venus Store 0/500 Open 2 mo

Total Credit Lines 11,200.

Thank you in advance!

Based upon what I read above, this is what you intend:

$8,381 ./. 10 months = $ 838 available to pay principal per month

I am just trying to keep it simple, and focus on the outstanding principal.

Lets stipulate that any additional charges you incur during a month will be paid down, per card, so that can be excluded from conversation for simplicity sake.

Vendor wise, you have three basic creditors: Chase (1) Capital One (2) Kredit ONE (1)

While you have two cards with Credit One, my personal concern would be with Chase, as they are a Bank, and they are just looking at things in a black & white manner, and you are close to 100% utilization on their card, while getting close to being Max-ed Out on all cards. * keep in mind, they can't read your mind, nor are they aware of your intentions.

So speaking of intentions, prior to posting this, what was your plan?

* also, in my opinion, put your concern about maxing out your Fico Score Points, and leave it there. When you get rid of this debt, your Fico Scores will take care of themselves.

Best Wishes!!!

Gidgetmom · ‎01-30-2017

First, thank you for taking the time to respond! Much appreciated.

Please consider any new transactions paid in full, while focusing my energy on paying off the debt.

My plan was to pay the Quicksilver One balance back down to 25% in February, and start paying more towards the two high balance cards. After getting Q1 paid back down, paying double minimum monthly on the Credit1 and Q1, and work towards getting the V1 & Chase paid down. Once I get those 2 paid below 50% (Budgeted to happen 6/17), then pay off Q1 and Credit1. Then, of course, all payments to V1 and Chase.

What will report each month this year:

Feb:

credit1: 36%

Q1: 25%

V1: 85%

Chase 84%

Mar:

Credit1: 25%

Q1: 23%

V1: 76%

Chase: 76%

Apr:

Credit1: 20%

Q1: 20%

V1: 65%

Chase: 67%

May:

Credit1: 18%

Q1: 17%

V1: 55%

Chase: 57%

June:

Credit1: 15%

Q1: 14%

V1: 45%

Chase:45%

July:

Credit1: pay off

Q1: pay off

V1: 38%

Chase: 38%

I would like to close the Credit One account in July once paid off. My plan was to replace it with a better card (hopefully, with a larger CL to help with utilization.

Aug:

V1: 27%

Chase: 27%

Sep:

V1: 16%

Chase: 17%

I hope to begin looking for a new truck around this time of the year.

Oct:

V1: 4%

Chase: 5%

Nov 1st: Pay off V1 and Chase and allow a small new balance to report on Q1 (less than 9%), which will then be paid before interest accrues on that balance.

I'm open to all suggestions! I just don't want to lose score points...trying to maximize them while paying it all off.

Anonymous · ‎01-30-2017

Great job penciling it out!

If others here comment Chase should get the first look at being reduced in its amount, would you be open minded to it?

My reasoning in addition to previous comments are that you are already in, and don't have to fight to get in the door.

Secondly, in my opinion, if you were to Force Rank which relationships would provide you more value in the future, it would be Chase vs. Capital One.

I am quite sure you will get differing opinions from people on this site, with different reasons and points of view which you can review and assess and see what choices would better match both you and your current situation.

Best Wishes!

Gidgetmom · ‎01-30-2017

Thanks, Sebastian. I am open to ALL suggestions and ideas.

I had prioritized V1 and Chase equally, as V1 is my highest CL and Chase is second.

If adverse action is a concern with Chase, I can readjust those priorities. I'm concerned about Chase balance chasing me if I don't show improvement soon. But, I also worry I may be too late to affect real change before an annual review (Chase opened 2/16, first reported 3/16). Posts on this forum lead me to believe that Chase is more concerned about the "reward churners" more than my litle account. I sure hope that's true!