Agreed with above. Chase may still balance chase you depending on how long you've been carrying near max debt on that card.
@Anonymous wrote:
@Anonymous wrote:
So let me run this by you.
Got some good revolving accounts: (balance/limit)
Synchrony (67/1500)
Kay. (321/4600)
Line of Credit (0/2500)
Then this monster:
Chase (6996/7000) interest rate of 16% min payment is crazy feels like I always have to use it.
Now, I am getting bonus of like 3000 to pay down on that card, would it best suit me interests to pay 2500 from line of credit to pay on that credit card to get a higher score? Line of credit rate is 9.9.No, maxing out anything whether it be a credit card or line of credit is bad for your credit. Use that bonus to pay down Chase. If you don't, Chase may take adverse action against you as they hate to see maxed out cards.
He's already maxxed out though; using a LOC to consolidate higher APR balances is a very good use of it and an easy one to explain to anyone who asks. It's no different than a balance transfer really: I'd personally do it as can get out of debt non-trivially faster at 10% than 16%. Chase may or may not balance chase, but the important thing for anyone is getting out of debt sooner rather than later; there's good reasons to take on debt, but it's throwing money away financing it at any higher APR than you absolutely have to... can always rebuild credit tradelines pretty easily these days if you don't have a major derogatory sitting on the report. My thoughts anyway.
OP: after you do whatever you decide, make a budget, and pay more than the minimum on the accounts. Excellent use of the bonus btw.
+1, use the bonus to pay down Chase, and use the LOC to pay down Chase.
Chase might balance chase you down. But that is irrelevant at this point. You need to pay off the $7k.
And feeling like you "always have to use the card" is something to step back and take a hard look at your spend profile. Credit cards will help you pay for things, and it seeme easy, but as you see, you reach a limit and then there is the inevitable payment requirement, and living below your means for a while.
