@liz9100 wrote:
This is what I have which is better to pay first off.2 visa 500.003 student loans 4000.2 store credits 2100.1 jewerly store 180. just got this not reporting1 auto loan 7000.1 home loan 10,0003-4 collection accounts 600.00 1200.00 500.00Which one should I pay down and off first. I need to raise my score around 75 points everything is maxed out.I wrote my balance down for better advise from everyone...I will be sending letter to everyone I can.
Since you did ask how you can raise your scores the fastest, I'm going to offer an alternative plan: Pay down your CC's fast. It's the high util (utilization; balance owed divided by credit limit) that is killing your scores.
I think that what you have posted are the amounts owed, not the credit limits, right? Don't worry about the student loans and car loan for now, other than make sure to keep paying them on time. So that leaves:
2 visa 500.00
2 store credits 2100.
1 jewelry store 180. just got this not reporting
1 home loan 10,000
I left the home loan on there for now --is this a home equity loan, with regular payments and an end date? Or is this a home equity line of credit, where you can use part of it, pay it off, use it again, and so forth?
If it's a home equity loan, then treat it like the student loans and car loan for now, and just keep paying on time. If it's a home equity line of credit (HELOC) with a credit limit of $10K, it's being treated like a credit card for scoring purposes.
So for scoring tactics, the first thing to do is to get each card (and HELOC, if it is one) under 50% of its credit limit. That's going to be a scramble on the HELOC, so you might have to grit your teeth and tackle it last. After everything is under 50%, then go ahead and get as many as possible under 10%. I would start with the smaller cards first, because it will take less money to pay them down.
You might want to look at a part-time job to help get you through this. Working the window at Mickey D's isn't very glam, but it's an extra source of income that you might be able to do on weekends or something. But if you have young children or elderly family to take care of, and no one else to cover for you, they come first.
It used to be that when someone posted with your situation (all maxed-out cards), we told them to take their cards out of their wallets and put them away. My only worry now is that with the credit crunch, they might close your cards on you if you just pay them down or off and don't use them, and you do need the util. So after you get each one to under 50%, take turns putting something on each that you absolutely must buy, and that you would pay for in cash if you didn't have credit (which you don't have right now, only debt.) So maybe a tank of gas or a grocery run, and then keep paying each card down.
My bigger concern is that you might find that some of the cards starting dropping your balance each time to pay to a little above your new balance, keeping you maxed-out. This fun tactic is called "chasing balances," and as best as I can tell, it's a sign that they've decided to close the card. I don't know if there's a thing that you can do about it if this happens, but if it does, call them and ask what's going on, and can you still use the card. Whatever they say, don't let it be closed with a balance still showing. Once you have the money to pay it in full, do so and close it yourself before they can. It doesn't affect your scores one way or another, but it looks better on your reports if it says "closed by consumer."
I'm sorry this is so long, and to end on such a gloomy note, but I'm afraid that with all of your credit maxed out, at least one of your card companies is going to shut you down.
Good luck.
@liz9100 wrote:This is what I have which is better to pay first off.2 visa 500.003 student loans 4000.2 store credits 2100.1 jewerly store 180. just got this not reporting1 auto loan 7000.1 home loan 10,0003-4 collection accounts 600.00 1200.00 500.00Which one should I pay down and off first. I need to raise my score around 75 points everything is maxed out.I wrote my balance down for better advise from everyone...I will be sending letter to everyone I can.
Hi Liz, to break the tie, so to speak, I agree with HTSU. If you want points fast, the uti route with CCs is the way to go.
Starting Score: 469