Significant Drop

[AssistanceRequired]

I was able to pay down my $2k of my $4,500 CareCredit in 4months.  My dog got sick this last weekend and I had to charge $1300 to the card again. 

a. Am I looking at a significant score drop?

b. Should I use my savings to pay off the $1300 to offset the inevitable?

c. or, Just increase the payments and ride it out?

Thanks so much for your suggestions.

AssistanceRequired

[Junejer]

Are you trying to app for anything any time soon? If not, don't worry about it. Just pay the thing off as quickly as possible to avoid paying excessive finance charges.

[Anonymous]

Like Byrd said... are you planning to app for anything in the near future? Whats your interest rate on the care credit? What's your rate on savings? Would it put you in a bind to pay the balance off from savings account? Example: If your interest on the care credit is 10% and your interest earned on the savings is around 1 - 3% and it wouldn't put you in a bind I would IMO pay the care credit and save the interest paid out on that line of credit.

[AssistanceRequired]

I want to apply for an apartment and my score is close to where I need it to be. 

The $1300 will set me back a few months. 

CreditCare will allow me 0% for 6 months and my savings account is 2.75%. The $1300 will almost wipe me out but, the debt is causing me stress because of the economy.

What do you all suggest?

Thank you for your time.

AR 

[Anonymous]

What are your scores? What score is needed for the apartment and how soon are you going to app for apartment?Any baddies on your cr's? I would continue to make payments... with that apr.... if you can make bi weekly payments so you knock the balance down quicker and hopefully won't feel such a pinch on the wallet. When your nearing the end of your 0% apr I would try to pay the balance off if you haven't already done so.

[haulingthescoreup]

I wouldn't want to give up the cash I had in the bank. If you can tighten up anywhere else, leave your savings alone and hit the CC as best as you can.

Remember that in terms of your scores reacting, nothing will happen until the new higher balance is reported, and again, nothing will happen when you pay it back down or off until those new lower balances are reported. Just be aware of the lag created by reporting cycles.

[Anonymous]

I would max out my credit cards if it came down to helping my puppy.  You did the right thing and your puppy is lucky to have you.

I would recommend doing the application as soon as possible.  For example, if your credit card does not report the new balance until whenever the cycle ends when you do the application they will only see what your currently owe on the card.  The 1300 will not be factored into your credit score until the credit card company reports the new balance at the end of the cycle.

Good Luck---TheTaxMan