What to do?

[sweetland]

I have $6,500 to apply to my debt. My question is how should I apply the money to have the best results on my credit score? I realize the norm is to pay off the debt that is costing you the most money but I'm looking to improve my score then I will obtain a loan at a later date to pay off the debt that is remaning after the $6,500.

Revolving Debt

                       Limit/Balance

Home Depot     2250/588

Macys               400/312

Cap One           3000/3125

Cap One           500/538

Wells Fargo      0/1384     (i closed this acct. two months ago so i have no avail. credit was 1500)

Jared                 1500/0

Chase               1000/1023

Target                500/456

Samuels            3000/2635

Best Buy            905/798

Pay Pal Credit    300/227

Sony                   6000/4658

Installment Debt       (not including my two vehicles or house)

Security Finance       800 borrowed 800 owed

Citi Financial              6000 borrowed 5556 owed (very high rate)

[Anonymous]

someone with more knowledge will answer, but I would assume you would want to pay off the account showing 0 limit as that kills your util.  Also, the one that is over the limit needs to be paid down.  It is kind of a crap shoot at that point as they are almost all near the top of limit and if the 6K loan is high interest, that may be the best ot pay off for you in any case.  I would try to find a way to pay both loans off, pay off the cc that has no limit and get all of the cards under limit first

[Anonymous]

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sweetland wrote:

I have $6,500 to apply to my debt. My question is how should I apply the money to have the best results on my credit score? I realize the norm is to pay off the debt that is costing you the most money but I'm looking to improve my score then I will obtain a loan at a later date to pay off the debt that is remaning after the $6,500.

Revolving Debt

                       Limit/Balance

Home Depot     2250/588

Macys               400/312

Cap One           3000/3125

Cap One           500/538

Wells Fargo      0/1384     (i closed this acct. two months ago so i have no avail. credit was 1500)

Jared                 1500/0

Chase               1000/1023

Target                500/456

Samuels            3000/2635

Best Buy            905/798

Pay Pal Credit    300/227

Sony                   6000/4658

Installment Debt       (not including my two vehicles or house)

Security Finance       800 borrowed 800 owed

Citi Financial              6000 borrowed 5556 owed (very high rate)

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Seems like these would be the priorities, since every bit OVER limit kills your scores AND costs you more money. 

As far as the actual breakdown, somebody with more knowledge will be along to give you more complete advice.

[sweetland]

I definately plan to pay those below the limits, as a matter of fact they may be already as I have made a payment on much of the accounts listed. Assuming those were at their limits I was wondering what I should pay down to have the greatest impact on my credit score. I haven't quite figured out how to figure out the percentages etc. just yet.

[Anonymous]

Be patient, sidewinder, fused, llecs or somebody with a LOT of knowledge about UTIL. will be along to help you figure it all out.   

[llecs]

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WhatzUrPlan wrote:

Be patient, sidewinder, fused, llecs or somebody with a LOT of knowledge about UTIL. will be along to help you figure it all out.   

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Looks like I have been volunteered.

[llecs]

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WhatzUrPlan wrote:

Be patient, sidewinder, fused, llecs or somebody with a LOT of knowledge about UTIL. will be along to help you figure it all out.   

---

Looks like I have been volunteered.

[Anonymous]

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llecs wrote:

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WhatzUrPlan wrote:

Be patient, sidewinder, fused, llecs or somebody with a LOT of knowledge about UTIL. will be along to help you figure it all out.   

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Looks like I have been volunteered.

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See ~ right on cue, as though he was waiting at the door, listening for his name!

hehe  hope you don't mind!  It is, in fact, a compliment ~ total confidence in your knowledge & willingness to share it! 

[llecs]

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sweetland wrote:

I have $6,500 to apply to my debt. My question is how should I apply the money to have the best results on my credit score? I realize the norm is to pay off the debt that is costing you the most money but I'm looking to improve my score then I will obtain a loan at a later date to pay off the debt that is remaning after the $6,500.

Revolving Debt

                       Limit/Balance

Home Depot     2250/588

Macys               400/312

Cap One           3000/3125

Cap One           500/538

Wells Fargo      0/1384     (i closed this acct. two months ago so i have no avail. credit was 1500)

Jared                 1500/0

Chase               1000/1023

Target                500/456

Samuels            3000/2635

Best Buy            905/798

Pay Pal Credit    300/227

Sony                   6000/4658

Installment Debt       (not including my two vehicles or house)

Security Finance       800 borrowed 800 owed

Citi Financial              6000 borrowed 5556 owed (very high rate)

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I'm always going against the grain, but most would agree that getting those balances below the CL are a priority. I would pay off WF. All it takes is a late payment and your account will go to collections pronto! So, $6500 - $1400 = $5100.

Next, I'd say CapOne#1 and pay at least $200 for now. So, that leaves $4900. Then I'd say CapOne#2 for at least $100. Then Chase for at least $200. Now your balance is $4600.

Now comes the part where we all debate. Two trains of thought, pay off high rate cards or pay off low balances first. I'd go low. That would free up minimum payments that can be applied to your other debt. Score-wise, you would show more $0 balances that way.

So, I'd pay off Macys, CapOne#2, Target, Best Buy, and Pay Pal. If I did my math right, you'd throw $2270 roughly at these leaving $2300 rounded down. As a result, you'd have 5 CCs paid off (except for WF & Jared) with 5 CCs remaining. I bet you were paying at least $100 per month off those 5 CCs that I'm proposing you pay. You can now take that money and apply extra to the loan, car, house or whatever.

With the $2300 remaining, I would pay off HD and the small loan. That leaves Sony, CapOne#1, Chase, Samuals, and the CF loan and $900 remaining. The balance I would distribute between the CCs or throw all at the loan.

Don't close anything. I bet you'll get back at least 70 points out of the deal.

[fused]

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sweetland wrote:

I have $6,500 to apply to my debt. My question is how should I apply the money to have the best results on my credit score? I realize the norm is to pay off the debt that is costing you the most money but I'm looking to improve my score then I will obtain a loan at a later date to pay off the debt that is remaning after the $6,500.

Revolving Debt

                       Limit/Balance

Home Depot     2250/588

Macys               400/312

Cap One           3000/3125

Cap One           500/538

Wells Fargo      0/1384     (i closed this acct. two months ago so i have no avail. credit was 1500)

Jared                 1500/0

Chase               1000/1023

Target                500/456

Samuels            3000/2635

Best Buy            905/798

Pay Pal Credit    300/227

Sony                   6000/4658

Installment Debt       (not including my two vehicles or house)

Security Finance       800 borrowed 800 owed

Citi Financial              6000 borrowed 5556 owed (very high rate)

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Do you have access to any other monies? Also, the money you borrowed, is it all gone? The trick in your situation is not have any revolving TL reporting above 50% util. Unfortunately, with $6500, you're short.