Would like some advice on CC's

[pacane69]

I have two CC's in question.  A paypal which has a CL of $500, balance at $270, and a Capital one with a CL of $500 and balance at $370.  I know both are hurting my util badly but I'm wondering if paying both off, which I'd like to do, wouldn't be the right thing to do.  The paypal is a closed card and going off of my revolving util it looks as though it's still being factored in for the overall CL.  The capital one is currently restricted and can never be used again due to a 120 day late in November of 2008 although it still is not closed.  They told me to apply for a new one.

Both have current pay status for the last 13 months.  Would it be better to just keep making monthly payments as to at least gain a consistent two year string of being current?  If I pay the amounts to bring util under 9% it would only be a few months until they were paid off and I'm sure Capital one then would report a closed account and take the $500 CL out of the equation.  

My only other revolving credit is a closed Wells Fargo CC, CL of $5000 and balance at $2000 along with Orchard Bank CL of $400 and balance at $50.  If I pay down or off the WF card it would take $5000 available credit out of the equation then.  

My main concern is I'd like to pay off the Capital One and Paypal accounts but I don't want it to hurt my scoring in the process.

[MarineVietVet]

---

@pacane69 wrote:

I have two CC's in question.  A paypal which has a CL of $500, balance at $270, and a Capital one with a CL of $500 and balance at $370.  I know both are hurting my util badly but I'm wondering if paying both off, which I'd like to do, wouldn't be the right thing to do.  The paypal is a closed card and going off of my revolving util it looks as though it's still being factored in for the overall CL.  The capital one is currently restricted and can never be used again due to a 120 day late in November of 2008 although it still is not closed.  They told me to apply for a new one.

Both have current pay status for the last 13 months.  Would it be better to just keep making monthly payments as to at least gain a consistent two year string of being current?  If I pay the amounts to bring util under 9% it would only be a few months until they were paid off and I'm sure Capital one then would report a closed account and take the $500 CL out of the equation.  

My only other revolving credit is a closed Wells Fargo CC, CL of $5000 and balance at $2000 along with Orchard Bank CL of $400 and balance at $50.  If I pay down or off the WF card it would take $5000 available credit out of the equation then.  

My main concern is I'd like to pay off the Capital One and Paypal accounts but I don't want it to hurt my scoring in the process.

---

All this is just my opinion and what I would do. You'll have to make the final decision.

Don't continue paying interest on any account just for a few FICO points. If you have the funds to pay off the PP and Cap 1 cards then do so. They will continue to report for usually 10 years after closing which helps your AAoA.

I would then pay off the closed WF account as quickly as possible. I wouldn't concern myself with the CL. Remember that debt reduction is your #1 goal. I'd rather pay less interest or better yet no interest than keep a CL. The amount of a CL doesn't matter; it's your usage of that CL that is scored.

My 2 cents.

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Credit Problems Which Is Worse?
Whats In Your FICO Score

[pacane69]

TY for your input Marine.  So if Cap 1 closes the account after PIF it wouldn't have any negative effect on scoring?  My whole thinking was that if I decide to get credit in the near future a creditor would look at the report and think badly that I only had 13 months of solid payment history after a 3 month straight of being late on both of them even though they were the only lates in the 6 year history on both.

[MarineVietVet]

---

@pacane69 wrote:
TY for your input Marine.  So if Cap 1 closes the account after PIF it wouldn't have any negative effect on scoring?  My whole thinking was that if I decide to get credit in the near future a creditor would look at the report and think badly that I only had 13 months of solid payment history after a 3 month straight of being late on both of them even though they were the only lates in the 6 year history on both.

---

I'm wondering if there is a notation for that Cap 1 account on your report talking about it being restricted? I also wonder if a notation like that is a negative in and of itself? I'm not sure about that. When was the last time you pulled a CR? You can get one from all three CRA's once a year for free from  annualcreditreport.com

I really don't think any harm will occur if they close this. Others may have a different opinion and chime in.

[pacane69]

I pulled them from the CRA's in the beginning of this month.  There is no notation at all.  The only way I knew was because when I logged on to my account it shows all my info, even available credit, but says account restricted and a number to call.

[MarineVietVet]

---

@pacane69 wrote:
I pulled them from the CRA's in the beginning of this month.  There is no notation at all.  The only way I knew was because when I logged on to my account it shows all my info, even available credit, but says account restricted and a number to call.

---

At least there's nothing negative there. BTW you know that those late payments are really hurting you. Getting those deleted will help alot.

[pacane69]

Marine,

Yeah I realize that and I've tried GW letters out the wazoo and emails to CEO's to just be rejected.  Not sure of any other avenue I could possibly pursue.

[MarineVietVet]

---

@pacane69 wrote:

Marine,

Yeah I realize that and I've tried GW letters out the wazoo and emails to CEO's to just be rejected.  Not sure of any other avenue I could possibly pursue.

---

All you can do is keep trying. It's worth the effort. They are under no obligation to help you but hopefully you will find a sympathetic ear soon.