New Member
dl5770
Posts: 2
Registered: ‎12-06-2012
What Credit Cards should I pay off?

Hello all!

I am new to this board and it appears to be a great resource to get some solid advise.

 

I am coming into some money ($18,000) in January and would like to take the best approach in paying off some Credit Cards. Both for Credit Score and peace of mind!

 

Here's my situation (listed by highest ARP):

 

Cap 1 (17.9%) - $575 balance ($5,000)

AMEX (17.24%) - $7,722 balance ($8,000 limit)

Discover (12.99%) - $6,118 balance ($7,200 limit)

Chase (12.24%) - $4,913 balance ($5,500 limit)

BOA (9.24%) - $9,927 balance ($11,100 limit)

Citi (6.24%) - $9,355 balance ($9,500)

 

 My thoughts are: Cap 1, AMEX and BOA....OR.....Cap 1, AMEX, Discover and Chase (most of)

 

Any input would be great!!

 

Valued Contributor
creditnocash
Posts: 2,201
Registered: ‎07-23-2012
Re: What Credit Cards should I pay off?

dl5770 wrote:

Hello all!

I am new to this board and it appears to be a great resource to get some solid advise.

 

I am coming into some money ($18,000) in January and would like to take the best approach in paying off some Credit Cards. Both for Credit Score and peace of mind!

 

Here's my situation (listed by highest ARP):

 

Cap 1 (17.9%) - $575 balance ($5,000)

AMEX (17.24%) - $7,722 balance ($8,000 limit)

Discover (12.99%) - $6,118 balance ($7,200 limit)

Chase (12.24%) - $4,913 balance ($5,500 limit)

BOA (9.24%) - $9,927 balance ($11,100 limit)

Citi (6.24%) - $9,355 balance ($9,500)

 

 My thoughts are: Cap 1, AMEX and BOA....OR.....Cap 1, AMEX, Discover and Chase (most of)

 

Any input would be great!!

 


i would do the first. 

but then manage your cards better. 

after you pay off most of your balances you should see a gigantic score bump. in which id app for a cu credit card with a super high limit and bt for a 0% for x months for whatever you can. since you prob wont be coming into another 18k anytime soon. 

Current: Discover Fico 689 8/14 Walmart Fico 697 8/14

Inquiries (24 Months): EQ 6 TU 3 EX 4 | Most Recent: 09/04/2013
2 Inquiries in The Last 12 Months


2014 Goals:
Lower Utility

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$2900
Citi Diamond Preferred$6000
Citizens Mastercard$7000
Valued Contributor
Repo-ed
Posts: 2,953
Registered: ‎02-09-2012
Re: What Credit Cards should I pay off?
from highest apr to lowest apr
Member
oogy
Posts: 17
Registered: ‎11-23-2012
Re: What Credit Cards should I pay off?

Personally, I would probably pay all of them down below about 70% so they're not so close to max limits.  Then I would put the rest towards paying down the highest interest cards.  If you've got to leave money sitting on there, it might as well be getting the lowest interest rate possible. 

 

 

On the other hand, you might want to skip the first step and just put the whole lump sum into paying down the highest interest balances.  I think the cards that have a really high percentage of utilization are an extra red flag on your credit score - but that may not be a huge concern if you're not applying for anything soon.  So avoiding the extra interest might be a higher priority.

EX: 683 (Nov 12)
EQ: 703 (Nov 12)
TU: ???
2013 Goals:
725+ by Summer and 750+ by Year end
Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010
Re: What Credit Cards should I pay off?

Repo-ed wrote:
from highest apr to lowest apr

+1.   More important to reduce interest payments to zero that worrying about credit score. 

Valued Contributor
nicholasyud
Posts: 1,734
Registered: ‎08-13-2012
Re: What Credit Cards should I pay off?

30k in debt man its a lot of interest to paid each months.

You paid totally 300 to 400 each month with a firm 15% APR.

That's crazy god........Please stay in shape and stop abuse those plastic. They worth for their purpose ( save money and rewards)

I hope your finance getting better in a near future.


Starting Score: 560
Current Score: 748 Wishlist: CSP, Simply Cash, SPG, BOLD, INK, United MP,
Goal Score: 800


Walmart: 10k |Usaa: 8k|BCE: 9k| Amex: NSPL|Dis: 3.4k|Cap: 3.5k|CAP: 2k|CSP: 5k| Pen:4.5k

Frequent Contributor
bluesnowman
Posts: 464
Registered: ‎10-29-2012
Re: What Credit Cards should I pay off?

Pay off the one with highest APR's first, that's a lot of interest to pay every month man. Or pay the smaller cards and apply the rest so at least some cards won't kill your Utilization. You've got a lot to pay off my friend...and stop abusing the plastic like Nick says, It'd take me like 3 years to pay off all that debt if it were me...

Bank of America: Cash Rewards.-1,000. 4/25/12 (CLI Increase 6/15/13), Citi: Forward- 3k. 10/27/12 (CLI on 2/8/14, SP). Discover: More- 2k. 10/27/12 (Increase 6/1/14). Amex: PRG- NPSL (closed 12/13/13). 11/24/12. Chase: Freedom. 5/1/13- 2.4k. Southwest Rapid Rewards Plus.-3.6k. 6/15/13. Amex BCE-2k. 12/7/13. Amex SPG-4k.12/8/13. Last App: 1/8/14.
Moderator Emeritus
webhopper
Posts: 7,230
Registered: ‎09-16-2011
Re: What Credit Cards should I pay off?
Hi! I recommend that you pay them off with the highest interest first.... then you can close some cards and limit yourself to one or two and hopefully do not get in that situation again. Best of luck!

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



Take the myFICO Fitness Challenge
Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012
Re: What Credit Cards should I pay off?

nicholasyud wrote:

30k in debt man its a lot of interest to paid each months.

You paid totally 300 to 400 each month with a firm 15% APR.

That's crazy god........Please stay in shape and stop abuse those plastic. They worth for their purpose ( save money and rewards)

I hope your finance getting better in a near future.


Yes, so if you pay off the top 4 APR cards (well, most of the fourth) you are saving about $210 in interest, which you should use as an additional payment on the next highest APR card.

 

Of course, this only works if you don't add new balances to the paid-off cards.   If this is impossible, and the pattern looks bad (a series of nearly maxed out cards) then go to a real credit advice service and see what they can suggest

Established Contributor
distantarray
Posts: 2,112
Registered: ‎09-25-2011
Re: What Credit Cards should I pay off?

dl5770 wrote:

Cap 1 (17.9%) - $575 balance ($5,000)

AMEX (17.24%) - $7,722 balance ($8,000 limit)

Discover (12.99%) - $6,118 balance ($7,200 limit)

Chase (12.24%) - $4,913 balance ($5,500 limit)

BOA (9.24%) - $9,927 balance ($11,100 limit)

Citi (6.24%) - $9,355 balance ($9,500)

 


imo,

1. Amex

2. Chase

3. Capital One

4. Citi

5. Discover

6. Bank of America

 

 

LOL but that'sjust me. because Amex HATES people carrying large balances, and Amex and Chase being the top two credit card companies in my opinion I wouldn't want to burn either one of them or make them lose faith =)

 

I could careless about Capital One or Bank of America personally since I don't think they offer anything that's of any value compared to the rest of them.

 

But generally the plan with the highest interest rates first would probably work best, I'm just a bit weird =)

 

So if you take that into consideration I would pay off

 

1. Capital One

2. Amex

3. Chase

4. Discover

5. Citi

6. Bank of America

 

 

It's not exactly highest APR to lowest, but considering the APR and how I rate the banks personally since Amex and Chase holds most of the best reward cards and sign up bonuses this would benefit you a lot in the future, so it's nice to keep a good history with them. The APR's shouldn't be so different to cause too much of a extra troubles.

 


total credit limits $108,400 Credit scores Ex 728 EQ 738 TU 758