topic Re: $7000 Pay Down in Credit Cards

$7000 Pay Down

Anonymous — Fri, 03 Feb 2017 20:32:48 GMT

Hey guys I have a USAA signature card with a credit limit of $19,800 on it. My utilization on that card is currently $17,000 and it's been holding me back from getting any new lines of credit. In my defense the utilization is so high because we use that card to renovate our home. It has cash rewards and a very very low interest rate.
I'm about to put $7,000 down on that card do you guys think that's enough of a utilization reduction to get a new card from Chase?

Re: $7000 Pay Down

Anonymous — Fri, 03 Feb 2017 22:03:24 GMT

Nobody will be able to answer that, because they don't know your current FICO 8 scores and they don't know the current balances and credit limits on all of your revolving accounts. It looks from your signature like you have the following at least:

CO Quicksilver One, Citi Double Cash, USAA Signature, JCP, Care Credit

Quick question: any particular reason you want a sixth card?

PS. You mention that the interest rate on the USAA card is very very low. I am curious... what is it?

Re: $7000 Pay Down

Anonymous — Fri, 03 Feb 2017 22:12:06 GMT

Quicksilver one 800 0 util
Citi double cash 800 0 Util
Care Credit 6000 0 util
JCPenney 700 400 util
USAA 19800 17000 util

My scores are in the low 600s don't know actual FICOS. I'm looking for one more card to add to my profile before I stop applying and start gardening. The USAA and the CareCredit I am only an authorized user on so I don't actually count them as my own personal cards.

Re: $7000 Pay Down

Anonymous — Fri, 03 Feb 2017 22:12:38 GMT

USAA APR is 11%

Re: $7000 Pay Down

Anonymous — Fri, 03 Feb 2017 23:48:03 GMT

@Anonymous wrote:
USAA APR is 11%

Ahhh... I understand. It is very very low -- when compared to the stratospherically high rates that many other CCs charge (e.g. 20%). But 11% is still a huge amount of interest to pay, given that the best savings accounts and CDs pay a bit over 1%. The 1-2% you may have gotten in CC rewards is a bad trade for the 11% rate. You are most certainly doing the right by paying a chunk of it down and you should pay it off as soon as possible.

Re: $7000 Pay Down

Anonymous — Sat, 04 Feb 2017 00:02:11 GMT

I'd pay the JCP off entirely since it is such low hanging fruit. Then you will have 4 out of 5 cards reporting $0 which FICO will like. Then keep hammering away at your huge USAA balance, until you have it at < 48% of its credit limit or until your total utilization is < 28%, whichever takes longer. Then pull your FICO 8 scores with the $1 free trial at Credit Check Total.

At that point you will have a good idea about what cards you might be able to get based on those (much better) scores.

There is no particular reason to get a sixth card now rather than (say) six months from now, and a number of reasons to wait.

Do you have any derogs?

Re: $7000 Pay Down

elim — Sat, 04 Feb 2017 00:06:59 GMT

@Anonymous wrote:
@Anonymous wrote:
USAA APR is 11%
Ahhh... I understand. It is very very low -- when compared to the stratospherically high rates that many other CCs charge (e.g. 20%). But 11% is still a huge amount of interest to pay, given that the best savings accounts and CDs pay a bit over 1%. The 1-2% you may have gotten in CC rewards is a bad trade for the 11% rate. You are most certainly doing the right by paying a chunk of it down and you should pay it off as soon as possible.

@ 17k @ 11% = $155 in interest/month. Pay that sucker.

All you can do is pay the large payment, wait for it to report, and pull your Fico scores. Chase will most likely pull 2 bureaus (EX and TU for me when I was borderline). Report back when your USAA statement reports the lower utilization and you will get a better idea of your chances (best through the Chase prequalifier). You can always remove yourself as AU from the card if your scores are still low due to the still high utilization on the USAA card.,

Re: $7000 Pay Down

MrsCHX — Sat, 04 Feb 2017 22:12:44 GMT

@Anonymous wrote:
Quicksilver one 800 0 util
Citi double cash 800 0 Util
Care Credit 6000 0 util
JCPenney 700 400 util
USAA 19800 17000 util

My scores are in the low 600s don't know actual FICOS. I'm looking for one more card to add to my profile before I stop applying and start gardening. The USAA and the CareCredit I am only an authorized user on so I don't actually count them as my own personal cards.

Pay the $400 and if you can get the USAA below 50% that would help a ton.

Re: $7000 Pay Down

Anonymous — Sat, 04 Feb 2017 22:22:47 GMT

I would recommend taking a step back and paying that thing off completely before you start asking other lenders to extend more credit to you.

Someone on here has a great quote that says something along the lines of a bank being a place that will lend you money as long as you can prove you don't need it.

That is very true, and with a 19.8k card that is ~ 88% charged up, I would guess that you probably look to a bank like someone who does need it - in which case they won't feel safe lending to you.

Focus on cutting expenses while you get that large debt paid off, and your FICO scores will naturally rise so that Chase and other banks will eventually want your business.

Re: $7000 Pay Down

colinstu — Sun, 05 Feb 2017 04:27:15 GMT

Low 600 FAKOs... a lot of low-limit store cards, and one real CC with High Util....

Even if you got it down to 30%, I bet Chase isn't going to feel easy around you.

Other lenders might give you a chance, but won't be giving out a high CL I'm sure.

I think the number one thing you need to work on is just letting things age. Pay that card down $7k, and then spend the next 6 months making further large chips at that balance. Try the Chase pre-qual page after that and see what they offer you.

Do you have any baddies on your reports? What's your AAoA? Oldest TL?

Re: $7000 Pay Down

happypill — Tue, 07 Feb 2017 19:10:12 GMT

@Anonymous wrote:
Quicksilver one 800 0 util
Citi double cash 800 0 Util
Care Credit 6000 0 util
JCPenney 700 400 util
USAA 19800 17000 util

My scores are in the low 600s don't know actual FICOS. I'm looking for one more card to add to my profile before I stop applying and start gardening. The USAA and the CareCredit I am only an authorized user on so I don't actually count them as my own personal cards.

If you are an AU on the USAA card, get yourself removed. That will dramatically improve your overall utilization, as well as eliminate a card that is more or less maxed out and definitely hurting your score. Once it is no longer reflected on your report, your score should imcrease substantially. You could then apply for something and garden, and get added back as an AU to that card if you want.

Re: $7000 Pay Down

Anonymous — Tue, 07 Feb 2017 19:48:52 GMT

@happypill wrote:
@Anonymous wrote:
Quicksilver one 800 0 util
Citi double cash 800 0 Util
Care Credit 6000 0 util
JCPenney 700 400 util
USAA 19800 17000 util

My scores are in the low 600s don't know actual FICOS. I'm looking for one more card to add to my profile before I stop applying and start gardening. The USAA and the CareCredit I am only an authorized user on so I don't actually count them as my own personal cards.
If you are an AU on the USAA card, get yourself removed. That will dramatically improve your overall utilization, as well as eliminate a card that is more or less maxed out and definitely hurting your score. Once it is no longer reflected on your report, your score should imcrease substantially. You could then apply for something and garden, and get added back as an AU to that card if you want.

Re: $7000 Pay Down

jamesdwi — Wed, 08 Feb 2017 01:56:41 GMT

I woulld try to call up NFCU and talk to a credit analyst and see fi they will open a HELOC or a 2nd on the house with the understanding that you will pay off the $17,000 card with the proceeds, it should cut your APR by 1/2 if not 2/3rds saving you the interest, and probably help out your credit. The analyst may go for it because its safer for the bank the balance goes from unsecured to secure by your house, which should hopefully be worth more money than before.

Then pay down the remaining credit card debt and the HELOC ASAP