topic Re: Which Credit Card Should I Pay First? in Credit Cards

Which Credit Card Should I Pay First?

Caesar89 — Wed, 15 Oct 2025 20:29:12 GMT

Hello,

Had so much success with reading these forums some years ago. After some deaths in my family and being laid off, had to use some credit cards. I'm back working and have a little cash saved, about $5k. I paid off two credit cards and have three remaining. Which credit card should I put the $5k into to increase my scores? These credit cards are all CLOSED. I appreciate the feedback.

American Express

Platinum

$3,651/No Limit. No Util. Listed Closed

Gold

$18,185/No Limit. No Util. Listed. Closed

Navy Federal CU

$21,137.64/21,100 101%. Closed

EDIT: I only have $5k to put towards these balances.

Re: Which Credit Card Should I Pay First?

unsungivy — Wed, 15 Oct 2025 17:24:53 GMT

@Caesar89 wrote:
Hello,

Had so much success with reading these forums some years ago. After some deaths in my family and being laid off, had to use some credit cards. I'm back working and have a little cash saved, about $5k. I paid off two credit cards and have three remaining. Which credit card should I put the $5k into to increase my scores? These credit cards are all CLOSED. I appreciate the feedback.

American Express

Platinum
$3,651/No Limit. No Util. Listed Closed

Gold
$18,185/No Limit. No Util. Listed. Closed

Navy Federal CU
$21,137.64/21,100 101%. Closed

Well, they're all closed, so are you racking up any further interest? If so, how much on each? If that's not a factor, then I'd fully pay off the Platinum just to have one less to deal with, and 5k on the others would still leave them over 75% so really wouldn't change your scores etc.

Re: Which Credit Card Should I Pay First?

Caesar89 — Wed, 15 Oct 2025 17:41:27 GMT

@unsungivy On the two American Express cards, I don't see interest being charged. On the Navy Fed card, after talking to them, they dropped my interest rate down to 3%.

Re: Which Credit Card Should I Pay First?

GZG — Wed, 15 Oct 2025 17:55:16 GMT

@Caesar89 wrote:
Hello,

Had so much success with reading these forums some years ago. After some deaths in my family and being laid off, had to use some credit cards. I'm back working and have a little cash saved, about $5k. I paid off two credit cards and have three remaining. Which credit card should I put the $5k into to increase my scores? These credit cards are all CLOSED. I appreciate the feedback.

American Express

Platinum
$3,651/No Limit. No Util. Listed Closed

Gold
$18,185/No Limit. No Util. Listed. Closed

Navy Federal CU
$21,137.64/21,100 101%. Closed

were you late on these accounts? are they charged off or just closed by the issuers?

Re: Which Credit Card Should I Pay First?

JoeRockhead — Wed, 15 Oct 2025 18:03:07 GMT

The credit limit is no longer factored on the Navy revolver so it will be counted as maxed out, and at 100% utilization until its paid to a zero balance.

Re: Which Credit Card Should I Pay First?

Caesar89 — Wed, 15 Oct 2025 18:37:27 GMT

@GZG Both of the AmEx are charge offs but I'm still paying them monthly. I have been late on the AMEX with the $3k balance and the Navy Federal.

Re: Which Credit Card Should I Pay First?

Caesar89 — Wed, 15 Oct 2025 18:38:47 GMT

@JoeRockhead Wow, so it won't matter if I don't pay it off? No score increase if I pay under 80%?

Re: Which Credit Card Should I Pay First?

JoeRockhead — Wed, 15 Oct 2025 18:46:20 GMT

@Caesar89 wrote:
@JoeRockhead Wow, so it won't matter if I don't pay it off? No score increase if I pay under 80%?

No, like I said on closed, or charged off revolvers, the card's credit limit is whatever the remaining balance is so until it's paid to zero it will remain at 100+% utilization.

This also affects your aggregate utilization being that card's credit limit is no longer factored in your TCL.

Re: Which Credit Card Should I Pay First?

Caesar89 — Wed, 15 Oct 2025 18:52:37 GMT

@JoeRockhead So when it reports monthly, it has the credit limit and the balance producing a utilization, weird enough Navy Federal has the account closed when I log in but it does not show closed on my credit reports. The utilization has dropped from 103% to 101%.

Re: Which Credit Card Should I Pay First?

1lifeisworthit — Wed, 15 Oct 2025 20:26:42 GMT

I'd get on a payment plan for the 2 large balance cards if I could.

I'd pay off the small balance card, and put the rest of the $5000 left over onto the card that is costing you interest.

After that, every single month, I'd make my committed payment plan payments, and I'd find extra on top of that commitment onto the card that has interest..

Once that one gets paid off, the final card gets its committed payment, the other (now paid off) card's committed payment, AND everything extra you can find. Every month.

Such a strategy gives you several months of decent payment history after the negatives. Which is why a committed payment plan is helpful, as opposed to sending something every once in a while.

This is assuming a small emergency fund is in place, to protect my ability to stick with the payments.

Re: Which Credit Card Should I Pay First?

Caesar89 — Thu, 16 Oct 2025 01:14:31 GMT

@1lifeisworthit Thanks for the reply. Okay, so pay the smaller credit card off first and apply the rest to the Navy Fed with the interest. I pay all the cards every month but just wanted to know what to do with the extra money.

Re: Which Credit Card Should I Pay First?

1lifeisworthit — Fri, 17 Oct 2025 17:58:36 GMT

That's what I'd do, yes.

Again, assuming an emergency fund, and assuming I could get an official payment plan so that my payments would be reported to the credit bureaus.

If I don't have an emergency fund, then that plan changes.