topic Re: How should I pay down my cards? in Credit Cards

How should I pay down my cards?

Anonymous — Fri, 21 Apr 2017 15:01:17 GMT

Hello all, I have a few credit cards and a plan. I'm wanting to get my score up to 700 before august if possible. I'm currently at 625,607,640 and i'm wanting these scores up to get refinanced on my car. Which cards should I pay down first to reduce utilization and get that score up up up? I'm doing all minimum payments plus at least $200 extra per month to help pay on them.

Current Balances:

Cap One Secured $350/$500 (25min, 24.99%)

Cap One QSilver $300/$500 (25min, 24.99%)

Credit One $200/$450 (25min, 24.99%)

Walmart $250/$500 (25min, 25.99%)

Cap One Journey $200/$300 (25min, 24.99%)

Exxon Mobile $40 /$200 (25min, 24.99%)

JcPennys $70 /$500 (25min, 27.99%)

Kays $450/$1000(50min, 24.99%)

I'm thinking drop $200 and get the journey card paid off this month and that'll also free up $25 next month. Opinions? And again, goal is to reach 700 by July or August if possible. I'll be paying on all of these and getting over utilization down while also paying car payments. Thanks!

Re: How should I pay down my cards?

RockinRay — Fri, 21 Apr 2017 15:16:02 GMT

@Anonymous wrote:
Hello all, I have a few credit cards and a plan. I'm wanting to get my score up to 700 before august if possible. I'm currently at 625,607,640 and i'm wanting these scores up to get refinanced on my car. Which cards should I pay down first to reduce utilization and get that score up up up? I'm doing all minimum payments plus at least $200 extra per month to help pay on them.

Current Balances:
Cap One Secured $350/$500 (25min, 24.99%)
Cap One QSilver $300/$500 (25min, 24.99%)
Credit One $200/$450 (25min, 24.99%)
Walmart $250/$500 (25min, 25.99%)
Cap One Journey $200/$300 (25min, 24.99%)
Exxon Mobile $40 /$200 (25min, 24.99%)
JcPennys $70 /$500 (25min, 27.99%)
Kays $450/$1000(50min, 24.99%)

I'm thinking drop $200 and get the journey card paid off this month and that'll also free up $25 next month. Opinions? And again, goal is to reach 700 by July or August if possible. I'll be paying on all of these and getting over utilization down while also paying car payments. Thanks!

This is a hard one due to the fact that the APR's are all so high! But I will take a stab at it.

1. Pay off Pennys and Exxon. Those balances are small.

2. Since those two are paid, take the money you would normally pay on them and apply to your Walmart card.

3. Rinse and repeat. When you get one paid off, take the extra funds and put towards the next card.

Normally, I would recommend paying the highest APR first, then work towards the next highest APR. But, your cards are all very close in APR so it makes it tough.

As you pay off the cards, try not to use them. If you can, try and just use cash for stuff until these are all paid off.

Not much help - you are in a tough position.

Re: How should I pay down my cards?

Anonymous — Fri, 21 Apr 2017 15:25:48 GMT

Just out of curiosity, how does the rest of your CR look? Any collections, lates, or other adverse items that would bring the score down? It can take a long time to rebuild credit scores, but getting the adverse stuff off (via disputes, goodwill letters, etc.) can make a HUGE difference.

Re: How should I pay down my cards?

Anonymous — Sat, 22 Apr 2017 01:22:55 GMT

No I'm actually newer to credit so good there. Just a lot of new accounts as you can see. 😀. I use the Exxon card routinely as it gives a good bit cash back on gas. So JcPenny's and then clean out Walmart? Only reason for wanting to pay journey's off is that it's been higher for a month now and I only used it for an emergency car repair. I won't be touching it again so that's why I was wanting to get that one down first, plus it'd look better because that'd be one less card that would be reporting high utilization. Is my thinking flawed?

Re: How should I pay down my cards?

Anonymous — Sat, 22 Apr 2017 02:02:25 GMT

Get rid of credut one asap cancel it and NEVER ever get a card thru them again. Other than that pay them off 1 by 1 every month.
Next step sock drawer your cards and work on getting higher limits. Use only 1 card until you can handle monthly payments.

Re: How should I pay down my cards?

SouthJamaica — Sat, 22 Apr 2017 02:18:13 GMT

@Anonymous wrote:
Hello all, I have a few credit cards and a plan. I'm wanting to get my score up to 700 before august if possible. I'm currently at 625,607,640 and i'm wanting these scores up to get refinanced on my car. Which cards should I pay down first to reduce utilization and get that score up up up? I'm doing all minimum payments plus at least $200 extra per month to help pay on them.

Current Balances:
Cap One Secured $350/$500 (25min, 24.99%)
Cap One QSilver $300/$500 (25min, 24.99%)
Credit One $200/$450 (25min, 24.99%)
Walmart $250/$500 (25min, 25.99%)
Cap One Journey $200/$300 (25min, 24.99%)
Exxon Mobile $40 /$200 (25min, 24.99%)
JcPennys $70 /$500 (25min, 27.99%)
Kays $450/$1000(50min, 24.99%)

I'm thinking drop $200 and get the journey card paid off this month and that'll also free up $25 next month. Opinions? And again, goal is to reach 700 by July or August if possible. I'll be paying on all of these and getting over utilization down while also paying car payments. Thanks!

1. Stop using the cards.

2. 1st extra 200: pay off Exxon Mobil & JCPenneys, then $90 to Cap One Journey

3. 2nd extra 200: pay off Cap One Journey, then 90 to Credit One

4. 3rd extra 200: pay off Credit One, then 90 to Walmart

5. 4th extra 200: pay 160 to Walmart, then 40 to Quicksilver

Re: How should I pay down my cards?

ChargedUp — Sat, 22 Apr 2017 02:39:21 GMT

@Anonymous wrote:
Get rid of credut one asap cancel it and NEVER ever get a card thru them again. Other than that pay them off 1 by 1 every month.
Next step sock drawer your cards and work on getting higher limits. Use only 1 card until you can handle monthly payments.

Agreed. You're throwing money at monthly "fees" along with a high APR on the Credit One card. Grow the relationship you've already started with Capital One for now. Cap One also has decent products that you can PC into as your credit grows. (Venture, Quicksilver, etc.)

PS. Also stay away from anything that says "Verve" or "Surge"!

Re: How should I pay down my cards?

Turbobuick — Sat, 22 Apr 2017 05:09:47 GMT

Because all the rates are basically the same. Pay the lowest balances first. Following month you will have less to divide and can pay more toward the next balance. I want to emphasize that you don't use any of the cards while paying them off. It's too easy to go down that slippery slope. Good luck.

Re: How should I pay down my cards?

jdxprs1 — Sat, 22 Apr 2017 06:27:27 GMT

Tighten your belt and pay off the capital one secured. Get the 500 deposit back and use it to pay off the quicksilver and credit one.

2nd month put the extra 200 on the cap one journey. Hit credit increase luv button on Walmart card. Should be able to take that to at least 2k.

So after month 2 your utilization problems are gone. Pay the rest however you want.

Re: How should I pay down my cards?

medicgrrl — Sat, 22 Apr 2017 07:40:51 GMT

I wouldn't close any cards yet. You said you have enough to pay the minimum payments plus an additional $200 per month. Based on your post above, that would be $425 per month. Start at the lowest balance and work your way up. Continue paying the $425 per month towards them and you should have them paid off in 4-5 months. As soon as you have them paid off, close credit one and stop paying those monthly fees. You have enough cards without that one.

Re: How should I pay down my cards?

Anonymous — Sat, 22 Apr 2017 08:40:11 GMT

There's some great advice in this thread. I agree with paying down, requesting CLI and SD what you aren't going to use. Consider getting a shared/secured loan if you don't already have an installment reporting. You are going to need to be disciplined and conscious of your spending to hit 700 when you're wanting.

Re: How should I pay down my cards?

Anonymous — Sat, 22 Apr 2017 10:42:30 GMT

Thanks guys! I'll follow your advice. And yes, I do have the car loan reporting on my credit right now which helps as well.

Re: How should I pay down my cards?

Anonymous — Sat, 22 Apr 2017 12:49:01 GMT

Pay off the 2 small balances, no need to carry those small balances paying that outrageous%
Preventing HALF a $100 more dollars from zeroing out 2 more small ($200) balance cards... That's 4 payments gone right there

Trick is to NOT run them up again, allowing the low utilization to further bump the score such that you can apply for a small $1500 PL with a Fixed Rate of % to take care of this nonsense w/o swimming in revolving B.S. %

Also ask for any SP cli you can get, simply to add utilization space again the 'pretty up' your profile to secure that PL or even a small LOC works

Not a CC app has you might not get a CL big enough but as far as PL $1500 is very small and all you need

Don't make the mistake of flipping out if the quoted rate 'looks' high...Whatever it's the amount you pay in DOLLARS that matter
A Fixed Rate gives you control, you see the Max you'd pay IF you kept the loan out the entire time but it's not your plan to sit back and actually take 24-36 months to pay it off you just
A) Want it OFF those revolving cards so the debt load STOPS growing, thus giving you room the ATTACK the debt in a meaningful way w/o it continuing morphing in size
B) Having all that debt of the CC helps the utilization, which of course helps your profile look better, which will lead to a better refi loan for the car note

*Please DON'T let the marketers STEAL all this 💰 from you over and over again
Don't chase 'cash back' on higher priced Exxon gas when you can't pay off your balances and wind up actually paying MORE 'because' of chasing rewards

It's a 'racket'

Lots of the things the marketers are TRAINING new to credit ppl to do is actually AIMED at more sophisticated mature card users NOT for new to the game BUILDERS but just like youngsters getting the liquor cabinet drinking ish they have no business drinking, get OUT of the mature credit game when you have baby CLs and not enough history to warrant playing at that speed.

Yes, these creditors will allow you to continue to shoot yourself slowly in the foot with these low level CLs and high as death march % rates driving right towards Bk and or just 'best' I can living'

Don't fall for the banana in the tail pipe

Chill out on card usage, don't apply for anymore cards allow these stuff to age, work on your budgeting, grow an emergency fund actually 2 emergency funds , one real emergency fund and a mini emergency ( quick cash fund) so life doesn't = hand to mouth as your 'normal'

It will only happen if you take CONTROL of this ish Now while the numbers are relatively small and manageable...Add a few more zeros and you're eff'd up for years behind nonsense like these

Take this as a thank goodness wake up call

You've got plenty of accounts let TIME do it's Magic for you
Btw once you secure your loan put that Credit One in a wood chipper

Best of Luck