Pay down to get highest FICO gains?

[Anonymous]

Here's our CC balances and limits ... could anyone give us advice on what to pay down FIRST and foremost to give our scores a nice boost?

Cap One: 600/1000
Orchard: 260/300
Walmart: 100/400
Wamu: 1170/2500 (not reporting to any of the CRAs YET)

We have approximately $900 to throw at these, and will have more by next month (reasonably, we can pay them all off by next month, but want to increase our scores NOW as much as possible).

We're not as concerned about the interest rates at this point -- we just really, really need DH to crack 660 on his EQ score in order to qualify for an unrestricted Citi-backed Government Travel Card.

(Right now, because I missed the report date by ONE DAY, it tanked his EQ score to 593. YIKES!!)

Thanks in advance!!

[Anonymous]

I'd go like this:

Orchard - pay off $250 to leave just under 5%

WalMart - pay off $85 to leave just under 5%

Cap One - pay off $350 to be well under 50%

Wamu - throw remaining $215 at this to be well under 50%

Part of me would like to tell you to throw the $215 from Wamu at CapOne instead, but there is the scary chance that Wamu could suddenly report at any time, and you are bordering on 50% util with them. How long since you received the Wamu card?

[marty56]

1st.  Pay off the capitol 1 and the Orchard card.

2nd. Pay off Walmart card

3rd.  Pay down the Wamu below $225

[marty56]

You also need to reduce the # of cards reporting a balance.

[llecs]

Right now your util is above 50% overall. Paying all of your balances to $0 will get you about 50 points. If you only have $900 to blow, and you are open to forking out about $954 instead, pay each CC to 28%. Pay down the CapOne to $280, Orchard to $84, Walmart to $112, and Wamu to $1176. This will likely increase your score by 25 points or so. Maybe a hair more since Orchard is reporting at 86% now.

Another scenario that might squeak a few extra points out is to figure out when these are reporting next, if against the time-clock. Target the CC that is scheduled to report next and PIF so as to have a $0 balance. That $0 balance will go a long way. So, if CapOne and WalMart is scheduled to report next, then pay those down to $0. That may give a little boost. Then throw the remaining at Wamu and that will bring the card to just under 40% (I'd fork out a little extra to be sure for the interest) and the overall util to under 30%. You cannot do anything about Orchard until the end of this month anyway and won't report until next.

I'd probably do the second scenario now that I think about it. You may just hit a little more than 30 points.

Another option is to consider the AU option. If you have a CC that you can make your DH an AU on, and it hasn't reported yet this month, and the card is free of baddies or longer history than his AAoA, then adding him could boost his history and utilization.

Message Edited by llecs on 11-18-2008 12:33 PM

[Anonymous]

Thanks, guys!! Wonder if I can split the "solved" button several ways?

As far as reporting, for this month, they've all (except for WaMu -- and even if they report, **supposedly** they'd report the statement balance which was $511) reported for this month.

When WaMu reports next month, supposedly around 12/11, we'll have paid them off completely by the 10th. Right now, though, we're at 46% util. Also, with our WaMu, we have 0% interest until 2010.

Walmart reported on 10/19 and 11/17. They're at $101, but I went ahead and paid an extra $50 since they do have outrageous interest. So that one's knocked down to $50 balance. (12%)

Cap One reported 11/15 (though only EX has updated with current balance). They'll report again on 12/15. The interest rate is still the intro of 0% Right now, with $600 used on the $1K balance, they're at 60% util. Yuck.

Orchard reports on the last day of the month. So they'll be the next to report. I went ahead and paid another $150 to them, leaving the balance at $110. So with that new payment, the util should be 36%

So with $200 "spent" where should the rest go?
Do ya'll think it's safe to throw it at Cap One?If my math is right, paying them another $265 will bring our util down to 33%.

I can do the math (barely), but I'm still clueless as to how it's all scored and whatnot. What matters MORE? The util on each card or the OVERALL util across the boards??

I just really want this "first" pay-off to give the most FICO bang for our buck! And please, please, please forgive me if I'm still confused!!!

[llecs]

OH, and duh moment.....ask everyone for CLIs.

[vawt]

I agree with marty.  Getting those two lowest balance cards to a $0 balance will give you additional benefit by having less cards reporting a balance (Orchard and Walmart).  I would use the rest on the CapOne.

[Anonymous]

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@llecs wrote:
OH, and duh moment.....ask everyone for CLIs.

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I wish we could but they're too new.

The "oldest" one is Orchard and we all know how lovely they are about CLIs!

Cap One, DH went over the limit once (and I paid it the day after, but it still registered) so they said to ask on the 7th statement. We're at the 5th, I believe.

[llecs]

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Wonderin wrote:

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@llecs wrote:
OH, and duh moment.....ask everyone for CLIs.

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I wish we could but they're too new.

The "oldest" one is Orchard and we all know how lovely they are about CLIs!

Cap One, DH went over the limit once (and I paid it the day after, but it still registered) so they said to ask on the 7th statement. We're at the 5th, I believe.

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Gotcha...worth a shot.