topic Re: "Triage" CC Payments in Credit Cards

"Triage" CC Payments

newmediarules — Tue, 26 Oct 2010 02:02:57 GMT

After 11 years of never missing a payment, I am about to be late on at least two of out of six cards, even if I only pay the minimums. My business has slowed dramatically.

The good news: I think I'll be back in some kind of shape in 30 days. But I know I'll be okay in February.

But what about now? How do I handle the situation at hand? How do I choose which cards not to pay this month? The oldest ones? The newest ones? Does it matter? Or is it the same disaster no matter how I slice it?

Some more info: Two of my cards were in fact terminated about six months ago (Wamu's). I am assuming it was because of my mounting debt ratio issues. But I have been paying on them diligently anyway. One of them is in my company's name. And the other four are personal. All active, but maxed out.

What should I do? Does calling these people before the stuff hits the fan make any difference?

Re: "Triage" CC Payments

haulingthescoreup — Tue, 26 Oct 2010 04:19:55 GMT

Ouch, sorry to hear.

Do you think that you'll be able to pay on the two cards before the next statement? If so, it ~~will only be~~ should only be, if they follow the rules, an internal late payment, as opposed to a 30-day late that hits (and hurts) your credit.

If you can make the payment before the next statement, I would guess that the best bet would be to pay the ones that are already closed, as there's no life left in those corpses anyway, to continue the triage metaphor.

Otherwise, if you can't pay in time to keep a 30-day from being reported, it doesn't really matter. A late is a late is a late, whether on an open CC, a closed CC, a car loan, or whatever.

What banks are your cards from? Some are more ruthless than others.

edited to interject some reality about how some banks jump the gun in reporting 30-day lates.

Re: "Triage" CC Payments

newmediarules — Tue, 26 Oct 2010 04:32:54 GMT

Thanks so much for your advice. Amx, Dsc, Citi, Wamu, BofA (the biz card)...

And none of them are anywhere close to the "real 30-day" late day. I think I can at least catch up within 30 days. Pretty sure about that.

Re: "Triage" CC Payments

haulingthescoreup — Tue, 26 Oct 2010 04:39:23 GMT

OK, the first thing to do then is to figure out which of your cards you want to keep happy.

I would definitely keep Amex paid.

Discover is actually pretty good about giving you a one-time get-out-of-jail free card for being late, as long as you catch up before the next statement.

If you've been having to make minimums for a while, now, this might be different.

Technically, lenders shouldn't report it to the CRAs until it's truly 30 days, i.e., the next statement date or pretty darn close, but some banks do pull the trigger early.

Other CC board readers who've had to do some serious juggling, who is apt to be more forgiving, or at least less apt to report a 30-day late when it's not yet 30 days out of OP's list? --American Express, Discover, Citi, BofA, WaMu-now-Chase (cards are closed.)

Re: "Triage" CC Payments

newmediarules — Tue, 26 Oct 2010 05:00:10 GMT

Why is Amex of particular importance?

Re: "Triage" CC Payments

haulingthescoreup — Tue, 26 Oct 2010 05:25:29 GMT

They're a good company to stay with.

For instance, if things get worse for you, and I sincerely hope they don't, and you have to close more lines, AmEx will backdate any additional cards that you decide to open, so that even if you open one in 2012, it will show "member since" from the year that you opened your current card. This is handy if you find that you have to re-establish your credit.

Otherwise, if there is a bank that is particularly useful to you, or one that you think treats you well, or you especially like their range of credit offerings, I'd say keep them happy.

That's actually a version of the definition of triage: those who are beyond hope, let them go; those who are OK with a bandaid and a Diet Coke, give them that; and put your efforts into those who can be saved but need lots of attention in order to survive.

Re: "Triage" CC Payments

Anonymous — Tue, 26 Oct 2010 07:15:24 GMT

@newmediarules wrote:
Why is Amex of particular importance?

IMO, Amex is the most likely to cancel your card when they see trouble, I would sacrirfice them first. Just an opinion.