topic Re: How to pay down CC debt and not cause a CLD. in Credit Cards

How to pay down CC debt and not cause a CLD.

Anonymous — Fri, 22 Jan 2016 22:54:26 GMT

I know I've posted about this before but i'm just so scared! I currently have about 7500 in CC debt spread mostly amongst 3 cards. These cards have been close to maxed out for quite some time but I always make atleast the minimum payment and i'm never late. I obviously want to pay these cards off but i'm so scared that when I do they will CLD me. It's happened before. Paid 6k to pay off a maxed out USAA card and they dropped me to a 3.5k limit. I need to pay the debt down rather quickly because we are submitting for a mortgage prequal in March. ******SCARED******

Re: How to pay down CC debt and not cause a CLD.

myjourney — Fri, 22 Jan 2016 22:57:19 GMT

Try and pay more than the minimum

Re: How to pay down CC debt and not cause a CLD.

Anonymous — Fri, 22 Jan 2016 23:33:30 GMT

My opinion is to pay off your cards as quickly as possible and not worry about CLDs at this point. High utilization an a low limit is no different than high utilization on a large limit. The bigger benefit will be having a lower min payment there by lowering your DTI ratio which will help obtain mortgage loan. You can't guarantee they will balance chase you and you can always raise your available credit down the road.

Re: How to pay down CC debt and not cause a CLD.

Anonymous — Sat, 23 Jan 2016 00:02:38 GMT

I started out with $6K over 5 cards in early Dec 2015. I have paid a little under $4K off in a month and opened 2 small cards. Only slight CLD I've seen had been PayPal (decreased my limit by $180). My limits are low compared to others but all my cards were maxed out when I started this major pay down.

Re: How to pay down CC debt and not cause a CLD.

Mantis350 — Sat, 23 Jan 2016 00:14:55 GMT

Get your DTI ratio down. Pay off the credit cards. It will be better for them to CLD you instead of paying so much interest on a maxed out larger CL that you cant use anyway. Get rid of the interest, get rid of the high DTI and it will be better for your situation. Do not worry about a CLD period.

Re: How to pay down CC debt and not cause a CLD.

Anonymous — Sat, 23 Jan 2016 00:16:51 GMT

@Anonymous wrote:
I know I've posted about this before but i'm just so scared! I currently have about 7500 in CC debt spread mostly amongst 3 cards. These cards have been close to maxed out for quite some time but I always make atleast the minimum payment and i'm never late. I obviously want to pay these cards off but i'm so scared that when I do they will CLD me. It's happened before. Paid 6k to pay off a maxed out USAA card and they dropped me to a 3.5k limit. I need to pay the debt down rather quickly because we are submitting for a mortgage prequal in March. ******SCARED******

Were the circumstances the same the last time you paid off a maxed out card and experienced a CLD? Had they been nearly maxed for some time but you'd never missed a payment and were never late?

It seems to me that's exactly what the banks want you to do, and they'd want to give you every opportunity to return to servicing a $7500 balance as long as they're reasonably confident you're going to eventually pay them off. If they have reason to think you might not next time, then they're likely to limit their liability.

But it's kind of academic at this point. You kind of need to pay them off if you can to prepare for your mortgage app.

Re: How to pay down CC debt and not cause a CLD.

Anonymous — Sat, 23 Jan 2016 00:18:46 GMT

@Anonymous wrote:
I know I've posted about this before but i'm just so scared! I currently have about 7500 in CC debt spread mostly amongst 3 cards. These cards have been close to maxed out for quite some time but I always make atleast the minimum payment and i'm never late. I obviously want to pay these cards off but i'm so scared that when I do they will CLD me. It's happened before. Paid 6k to pay off a maxed out USAA card and they dropped me to a 3.5k limit. I need to pay the debt down rather quickly because we are submitting for a mortgage prequal in March. ******SCARED******

There is really no way to know if they'll balance chase you. As you said, If you want to get that mortgage, you have no choice, but to pay them all down. Are you asking for peoples openions on how to tackle this? If so, here's mine. If it were me I'd write down exactly how much money I had alocated for the bills and then I'd write down how mcuh each card balance was. If I didn't have 7,500 bucks to pay it all off, I would look at all three cards and figure out how much I'd have to pay to get each one under 20%. From there, i'd start with the smallest debt and snowball it from there.

Re: How to pay down CC debt and not cause a CLD.

elim — Sat, 23 Jan 2016 00:35:56 GMT

Who cares about CLD. Once you have your mortgage, your scores will be good enough to get whatever you want. Do It! :]

Re: How to pay down CC debt and not cause a CLD.

Callandra — Sat, 23 Jan 2016 03:48:32 GMT

@Anonymous wrote:
My opinion is to pay off your cards as quickly as possible and not worry about CLDs at this point. High utilization an a low limit is no different than high utilization on a large limit. The bigger benefit will be having a lower min payment there by lowering your DTI ratio which will help obtain mortgage loan. You can't guarantee they will balance chase you and you can always raise your available credit down the road.

100% agree. Pay the cards off (especially if you're paying interest too!). Even if they CLD, once everything is paid off (and is reporting), call and see if they will restore your limits. If they don't, get new cards after you're done with your mortgage.

Re: How to pay down CC debt and not cause a CLD.

red259 — Sat, 23 Jan 2016 04:16:29 GMT

If you are paying interest then pay them all off. It is really that simple. A cld is no big deal vs paying a bunch of interest. Always pay more tha min payments.