topic Re: Refinancing in May, CC Help needed in Credit Cards

Refinancing in May, CC Help needed

Anonymous — Tue, 14 Aug 2007 21:05:18 GMT

Hello all, I hope someone knowledgable can help me out here. I will be refinancing in May 08. I have done ALOT to help my current score. I currently have an interest only loan that has heled me pay off some debt. My remaining cards are a Sears card at 3500.00 at 29%, maxed out, a Best Buy card at 27% at 1600.00, and a Visa at 12% at 3000.00, maxed out.

I have 1500.00 to spend on debt now. I want to do the best thing to help my score before May.

Should I payoff the card for 1600.00 and close it out, or should I split the 1500.00 and pay 750.00 to the Sears and Visa card , distancing the amount owed from the max?

What will help my score more? Thanx alot.

Re: Refinancing in May, CC Help needed

Anonymous — Tue, 14 Aug 2007 21:55:44 GMT

Tomstang wrote:
Hello all, I hope someone knowledgable can help me out here. I will be refinancing in May 08. I have done ALOT to help my current score. I currently have an interest only loan that has heled me pay off some debt. My remaining cards are a Sears card at 3500.00 at 29%, maxed out, a Best Buy card at 27% at 1600.00, and a Visa at 12% at 3000.00, maxed out.
I have 1500.00 to spend on debt now. I want to do the best thing to help my score before May.
Should I payoff the card for 1600.00 and close it out, or should I split the 1500.00 and pay 750.00 to the Sears and Visa card , distancing the amount owed from the max?
What will help my score more? Thanx alot.

Welcome

First, if you haven't already, read http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

tons of good info on the board, read up as much as you can.

Dont close anything just yet, this could hurt your scores. Posting some more info re your credit reports would be useful. What are your Fico scores? Any baddies listed and from when and how much? How old are your existing cards?

If your scores & credit report allow it, you will most likely benefit by opening a few additional cards. This would help in getting your utilization down to a better level. Maybe some balance transfers to spread the $ around, but don't max out the new cards. Just get them as a tool to help your utilization %. Give us some more info and I'm sure you'll get a lot of advice.

good luck,

ctRob

Re: Refinancing in May, CC Help needed

Anonymous — Tue, 14 Aug 2007 22:43:53 GMT

Maxed out card can hurt your score almost as bad as a collection. Start with the maxed out cards brigning it below 90% if you can get them all down to less than 50% of the limit, that would be better tho the best is between 10-30% of your limit. The maxed out one if the one that would hurt your score the most

Re: Refinancing in May, CC Help needed

Anonymous — Tue, 14 Aug 2007 23:33:35 GMT

ctRob, thanx alot. I have been reading a bit since posting, and like you said there is alot of great info. on here. I did learn today about what you were saying- To open a few more accounts and spread around the owed debt, and keep all balances low.

My thinking has ALWAYS been, the less cards the better. I guess thats how Ive been raised.

Can my score actually raise just by opening new cards?

BTW my current score is 675, I worked hard to get it there over the past 2 years from 548. I have no lates since 5 years ago, and one paid collection that still shows up. Two medical collections too.

Im glad I found a forum with people who want to work as hard as me to get better scores.

Re: Refinancing in May, CC Help needed

Anonymous — Wed, 15 Aug 2007 02:03:39 GMT

Before you do anything, go to daveramsey.com. Pay your cards off and don't open any accounts. What have we come to in this country thinking you have to take money out on credit. Who cares what your score is when the only thing you owe on is your mortgage and EVERYTHING else is paid for. Now thats a nice feeling. Start saving for what you buy, set up an emergency fund. You know, interest works both ways. Why not have the bank pay you interest instead of you paying interest. Its sad, but this website sets people up for failure by continuing to wade through a sea of debt. Change your behavior and get free from debt. Go to the daveramsey.com and sign up for "Financial Peace University". God bless.

Re: Refinancing in May, CC Help needed

Anonymous — Wed, 15 Aug 2007 02:05:52 GMT

Go to daveramsey.com and sign up for "Financial Peace University". Get out of debt as fast as you can. DO NOT open any new accounts.

Re: Refinancing in May, CC Help needed

Anonymous — Wed, 15 Aug 2007 02:11:09 GMT

No I'm not going to agree with Debt sucks and tell yu to cut up your crds and joins Dave's commune, but I do like his advic about not opening anymore cards. Don't know why your cards are maxed out but since you are thinking of refiing in May and dont have the means to pay them off, I would suggest paying them down.

The other poster was correct I was assuming that the credit card issue was your biggest problem but if there are other fctors involved, you would also need to look at those.

Re: Refinancing in May, CC Help needed

Anonymous — Wed, 15 Aug 2007 02:27:40 GMT

I did'nt say cut your CC's up. Put them in a lock box and bury them would do though. After using daveramsey.com, I have no debt except for my home mortgage. I know save up for vehicles and other goods. I now have savings that can pay expenses for 4 months. If you want out from under this debt stronghold you need to apply his getting out of debt principles. My FICO is over 800, but I don't need it. I have cash SAVED in a bank now. To get your home, save $, pay CCs, cars, then save for a down payment of 10-20%. It may take a few years but its worth it. Wouldn't is be nice to not be sucked into the world of everyday consumer credit. Get a budget and save, save, save.

Re: Refinancing in May, CC Help needed

Anonymous — Wed, 15 Aug 2007 02:31:38 GMT

DebtSucks wrote:
Before you do anything, go to daveramsey.com. Pay your cards off and don't open any accounts. What have we come to in this country thinking you have to take money out on credit. Who cares what your score is when the only thing you owe on is your mortgage and EVERYTHING else is paid for. Now thats a nice feeling. Start saving for what you buy, set up an emergency fund. You know, interest works both ways. Why not have the bank pay you interest instead of you paying interest. Its sad, but this website sets people up for failure by continuing to wade through a sea of debt. Change your behavior and get free from debt. Go to the daveramsey.com and sign up for "Financial Peace University". God bless.

The OP "cares what his score is" because he wants to refi. Nobodys instructing the OP to pay more interest or go further into debt. One of the options for getting his scores up is to use CC's as a tool to do that. He obviously knows he can pay off his cards in full (duhh), but at the moment it doesn't sound like that's a possibility.

If you think this website sets people up for failure then you have your head up your @$$. (Ladies, pardon my implied french)

Re: Refinancing in May, CC Help needed

Anonymous — Wed, 15 Aug 2007 02:40:59 GMT

Tomstang can't pay them all off right now. $1500 cash on hand. Put that down on one card and get busy on the rest. The fact is he is paying interest. duh. The end of the tunnel is that you can survive just fine without needing credit or a credit score for that matter. Save, save, save, then buy what you "need" from your saved $. Then continue to save again!

Re: Refinancing in May, CC Help needed

Anonymous — Wed, 15 Aug 2007 20:17:14 GMT

DebtSucks, I see you are a very determined and optimistic person! I feel I need that as well. I have five boys that are absolutely awesome. I have a great neighborhood and home for them, but with that I have a difficult time getting away from the interest that haunts me from taking out these cards. Dont paint me as the guy who vacations and buys, "Things I want." Im not that guy.

I have heard of a guy who on Clark Howard who dug himself out of debt by continually transfering credit to accounts with no interest periods in the first year, etc. I would call that using the CC system as a tool to pay down my debt, just like you say, without paying interest. The biggest gamble is to ensure there is no extra curricular activity on those"Debt Cards" as I like to call them. I am thinking of getting one more card to split my two maxed out cards four ways, thereby getting away from maxed out stautus and having my score begin to lower because of it.

I was also thinking of paying off my two medical collections with that card, 500.00 total, and getting that cleared up.

Whats the concensus? Get another card with a no interest period and split it 4 ways or dont and keep the debt coming down slowly until May.

Last question. As far as scoring goes, is it too close to May to get another card, thereby hurting my score?

Thanx alot to all who replied, Debt Sucks ,I will check out that site because I am always trying to learn more.

Re: Refinancing in May, CC Help needed

Anonymous — Wed, 15 Aug 2007 23:07:35 GMT

I would first suggest you ignore Debtsucks. He only has a few posts on this board and is a shill for Dave Ramsey. And Dave Ramsey wants your money, as much as he can get. Nobody here wants to take your money. DS saying to save, save, save, and to pay cash is is nice, but you don't need to pay Ramsey hundreds of dollars to tell you that. ctRob says save, save, save your money and don't send it to Dave Ramsey

Just read up here as much as possible and apply it to your credit. You'll do fine. Like I said earlier, you should post some more details as to what exactly you have on your reports and your scores. It will be easier for people to respond with some good advice.

Any new cards you add are going to help your overall utilization. Even if you don't do transfers.

For example:

if you have one card maxed at 5000 - you have 100% utilization

If you add 3 more new cards with CL's of 2000 each. Your overall avail credit is then $11,000 (5k + 2k + 2k+ 2k = $11,000) Now your overall utilization is 45% ($5,000 maxed credit / $11,000 avail credit).

Depending on your credit scores you may be able to avoid any annual fees. You should still pay down as much as possible to get each cards util as best as possible, but at least the new cards are helping.

Post your scores and any other CR details you want to share. You'll get more advice.

good luck

ctRob

Message Edited by ctrob on 08-15-2007 04:07 PM

Re: Refinancing in May, CC Help needed

Anonymous — Wed, 15 Aug 2007 23:13:41 GMT

Thanx ctrob. My scores are 687, 675, and 651. I keep forgetting to write that. I see where youre going with util. I can certainly get in on that. Do you think me getting another card or two is too close to my refi, as far as a negative effect by opening new credit?

Re: Refinancing in May, CC Help needed

Anonymous — Wed, 15 Aug 2007 23:21:04 GMT

I would suggest a CU since they have low rates and give high credit limits. You can apply for one of their cards and a LOC at the same time. Use the card to do a balance transfer. Penfed pulls EQ only. Not sure which one of your scores are EQ.

Re: Refinancing in May, CC Help needed

Anonymous — Wed, 15 Aug 2007 23:30:57 GMT

Tomstang wrote:
Thanx ctrob. My scores are 687, 675, and 651. I keep forgetting to write that. I see where youre going with util. I can certainly get in on that. Do you think me getting another card or two is too close to my refi, as far as a negative effect by opening new credit?

Not at all, you have plenty of time before a refi in may. Any minor repairs you attempt which may ding your scores a few points now will certainly recover before may. I recently got 3 new CC's and only lost a couple of points on two of my CR's. Of course everybody gets a diff reaction depending on your specific CR's, but no, you have plenty of time.

With those types of scores you should be able to land some pretty decent cards. Another thing new cards will do, as long as you keep the new ones at a low util, is show the CRA's that you can have "avail credit" without having to use it. This will help.

A good place to research CC's is WhoGaveMeCredit.Com You can see who gives what cards for all types of scores, a free service. Also the Home Page of MyFico, there is a link at the top for reviewing and applying for diff CC's. You should be able to approve for a couple diff AMex cards.

I would say with those scores you have plenty of time to be well into the 700's prior to May. No BK's or Liens, correct?

Keep Reading & Good Luck,

ctRob

Re: Refinancing in May, CC Help needed

Anonymous — Wed, 15 Aug 2007 23:31:47 GMT

My eq is 675, sorry but what is penfed?

Re: Refinancing in May, CC Help needed

Anonymous — Wed, 15 Aug 2007 23:54:38 GMT

Pentagon Federal Credit Union. If you are not eligible you can join through an affiliate on their website. I recently joined and applied for an 8000 credit card and a 5000 PLOC and was instantly approved. You fill in the amount of credit you want. I only ask for 8000 and 5000. They do only one pull from EQ for 90 days. I was also pre-approved for a new auto loan for 35000 but turned that down since I am not going to be buying another car until 2008. My EQ score was 714 with no baddies. I had my card in 7 days and the PLOC in 4 days.

Re: Refinancing in May, CC Help needed

Anonymous — Thu, 16 Aug 2007 00:34:51 GMT

onmyway3161 wrote:
Pentagon Federal Credit Union. If you are not eligible you can join through an affiliate on their website. I recently joined and applied for an 8000 credit card and a 5000 PLOC and was instantly approved. You fill in the amount of credit you want. I only ask for 8000 and 5000. They do only one pull from EQ for 90 days. I was also pre-approved for a new auto loan for 35000 but turned that down since I am not going to be buying another car until 2008. My EQ score was 714 with no baddies. I had my card in 7 days and the PLOC in 4 days.

Cool, I like CU's as well. Easy to deal with most of the time....

Re: Refinancing in May, CC Help needed

Anonymous — Sat, 18 Aug 2007 23:54:50 GMT

Thanx to all for the help, I got accepted for 10k at my employers credit union for a Mastercard. I will put no more than 10% on it and hide it from myself! 7.92% No bt fees!