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Valued Contributor
oracles
Posts: 1,699
Registered: ‎08-18-2007
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what should i do

this forum has been extremely helpful to me and i now need to ask for some advice regarding my situation. I have a discover card that has 2000 dollars left on it with a 4.9% interest rate. I have two other cards with 5000 balance and 3500 balance. i have an ax card with 2700 remaining with a 3.9%. what should i do to maximize my score and save on paying a finance charges. thanks
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Brammy
Posts: 5,436
Registered: ‎03-10-2007
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Re: what should i do

[ Edited ]


oracles wrote:
this forum has been extremely helpful to me and i now need to ask for some advice regarding my situation. I have a discover card that has 2000 dollars left on it with a 4.9% interest rate. I have two other cards with 5000 balance and 3500 balance. i have an ax card with 2700 remaining with a 3.9%. what should i do to maximize my score and save on paying a finance charges. thanks

 
Would really need more info on that before an answer could be given.  Such as when offers expires limits etc... But before you start playing the balance transfer game, take aclose look at the fees involved. Some now have no limit as to the amount of a balancetransfer fee some are capped at 50 dollars.



Message Edited by Brammy on 08-18-2007 05:40 PM
Valued Contributor
oracles
Posts: 1,699
Registered: ‎08-18-2007
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Re: what should i do

thanks Brammy for responding. let me clarify: i have a discover card that has 2000 dollars remaining balance with a 12000 limit and 5.9% rate until 6/2008. I have a mc with a 5000 remaining balance and 5500 limit with a 0% rate until 2/2008. i have another mc with a 3500 balance and 4000 limit and 0% rate until 1/2008. lastly, i have an American express with a 2650 balance and 3000 limit and 3.9% rate until it is paid off. i dont want to transfer any balances. I want to pay it all off to increase my score but i dont know what i should do first. i just received some money but i dont know what i should pay first and what is my game plan. i want to increase my score but also not pay any finance charges if i could. i dont know if i should pay off the cards first with interest rates so i dont pay anymore finance charges or should i pay off the cards with a high utl so i can increase my score. Also does it matter if i pay a little more than the minimum payment due. Does this help increase your score. Thanks
Moderator Emeritus
Brammy
Posts: 5,436
Registered: ‎03-10-2007
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Re: what should i do

[ Edited ]


oracles wrote:
thanks Brammy for responding. let me clarify: i have a discover card that has 2000 dollars remaining balance with a 12000 limit and 5.9% rate until 6/2008. I have a mc with a 5000 remaining balance and 5500 limit with a 0% rate until 2/2008. i have another mc with a 3500 balance and 4000 limit and 0% rate until 1/2008. lastly, i have an American express with a 2650 balance and 3000 limit and 3.9% rate until it is paid off. i dont want to transfer any balances. I want to pay it all off to increase my score but i dont know what i should do first. i just received some money but i dont know what i should pay first and what is my game plan. i want to increase my score but also not pay any finance charges if i could. i dont know if i should pay off the cards first with interest rates so i dont pay anymore finance charges or should i pay off the cards with a high utl so i can increase my score. Also does it matter if i pay a little more than the minimum payment due. Does this help increase your score. Thanks

 
 
Oooh-Tay!!:smileytongue:
 
Definitely get those down.  I'm worried about that Amex in your portfolio getting you with an FR cause you're almost maxed out across the boards.  That being said, do you have any Financial software.  I try to pay the most on the one thats costing me the most and that fluctuates not only with interest rates but with card balances as they are calculated on and average daily balance.
 
I use Microsoft Money but Quicken may have similar functionality.  Just plug in the debts, the date of next payment and the amount you want to pay.  The program will calculate the fastest paydown for you.  You can always try using the date you want to be out of debt as well and it will calculate payments and distributions that are most effective.  Financial software is priceless unless you have all day with a calc.
 
I also enter my inflow nd outgo from all my accounts to make sure the plan is doable and use the cashflow calculator to make sure my projections wont put my checking account in the red.



Message Edited by Brammy on 08-18-2007 06:13 PM
Valued Contributor
oracles
Posts: 1,699
Registered: ‎08-18-2007
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Re: what should i do

thanks brammy, but what does FR mean. So you think getting the utl% down should be my priority.
Moderator Emeritus
Brammy
Posts: 5,436
Registered: ‎03-10-2007
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Re: what should i do

A financial review is something that Amex does when they feel that a customer has become a risk for some reason or whenever they feel like it.  Maxed balances on cards are reason enough.  They can request verification of income, anything form pay stubs to tax returns and give you a limited time in which to cough it up.  Your card is usually frozen in the meantime and they can and will close the account with a notation of closed by creditor.  Bascally telling anyone eyeballing your report that you couldn't put up the goods to verify your stated income.
 
That being said, you can also be in danger of intrest rate hikes from all creditors.  as they review your history, they see a high balance maintained and figure your financial house if about to fall so they bump up you interest rate so they can get every dine they can before you finally go bellly up.
 
Remember a maxed out card can hurt you almost as much as actual derog information can.
 
HTH
Valued Contributor
oracles
Posts: 1,699
Registered: ‎08-18-2007
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Re: what should i do

thanks alot brammy, you have really helped me out alot. lastly does it help your score if you pay alittle more than your minimum due? Thanks
Moderator Emeritus
Brammy
Posts: 5,436
Registered: ‎03-10-2007
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Re: what should i do

IMHO, minimum payments are a trap. Look at the amount of interest you are being charged on any one payment then subtract that amount from the min pymnt due.  How much are you really paying towards your debt?   That being said making only the min payment each month is another reason for a creditor to red flag you. If you pay no more than 5 dollars extra, pay something
Valued Contributor
oracles
Posts: 1,699
Registered: ‎08-18-2007
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Re: what should i do

thanks you have helped tremendously

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