topic Re: New tactic? in Credit Cards

New tactic?

tcbofade — Wed, 05 Dec 2012 02:25:42 GMT

OK, as some of you know, I've got a LOT of credit cards.

Some are maxed out, some are at zero, most are somewhere in the middle.

My overall utilization has been as high as 80% plus, and I've spent most of 2012 trying to reduce both my over all utilization and my number of accounts with balances....

Currently, I'm at 62.4% overall utilization, and have ten open accounts with zero balances.

My scores have gone up and down this year, no real progress... (or loss, thank heavens...)

I also have "some number" of credit card accounts currently showing more than 90% utilization.

I have no baddies on any of my three cr's, and any and all of the "credit score information" sites point out having "some number" of cards over 90% as the largest negative factor effecting my credit score.

I just put pen to paper and discovered that I can have ZERO accounts reporting over 90% util by 01 February.

Do you think that will give me a noticeable score boost, or am I just spinning my wheels in a different direction?

Everyone's thoughts and opinions are appreciated, y'all be nice (to me, and to eachother) and put your two cents in...please.

Re: New tactic?

Anonymous — Wed, 05 Dec 2012 02:35:22 GMT

@tcbofade wrote:
OK, as some of you know, I've got a LOT of credit cards.

Some are maxed out, some are at zero, most are somewhere in the middle.

My overall utilization has been as high as 80% plus, and I've spent most of 2012 trying to reduce both my over all utilization and my number of accounts with balances....

Currently, I'm at 62.4% overall utilization, and have ten open accounts with zero balances.

My scores have gone up and down this year, no real progress... (or loss, thank heavens...)

I also have "some number" of credit card accounts currently showing more than 90% utilization.

I have no baddies on any of my three cr's, and any and all of the "credit score information" sites point out having "some number" of cards over 90% as the largest negative factor effecting my credit score.

I just put pen to paper and discovered that I can have ZERO accounts reporting over 90% util by 01 February.

Do you think that will give me a noticeable score boost, or am I just spinning my wheels in a different direction?

Everyone's thoughts and opinions are appreciated, y'all be nice (to me, and to eachother) and put your two cents in...please.

Get this down to 1%, and i see your score going up 60 points

Re: New tactic?

flowfaster — Wed, 05 Dec 2012 02:37:47 GMT

I would focus less on your Fico score and more on APRs. What kind of APRs are we talking about here? Seriously, unless you are planning a big purchase I would try for a 0% card for 15-18 months. Look at the Chase Slate.

But to answer your question, Yes. Your Fico will continue to rise until your Util hits >9% on 1 card YMMV. Different scoring models weigh this differently.

Re: New tactic?

tcbofade — Wed, 05 Dec 2012 02:48:56 GMT

@flowfaster wrote:
I would focus less on your Fico score and more on APRs. What kind of APRs are we talking about here? Seriously, unless you are planning a big purchase I would try for a 0% card for 15-18 months. Look at the Chase Slate.

But to answer your question, Yes. Your Fico will continue to rise until your Util hits >9% on 1 card YMMV. Different scoring models weigh this differently.

APR's vary widely....several are zero percent...a few are over 20%, most are somewhere in the teens.

I don't qualify for Chase Slate yet... TU FICO (via wallymart) currently 642. (EX FAKO 670).

I need to improve my score to qualify for the "better" cards with lower rates...

I am hoping that having zero cards reporting over 90% will result in a 20something point rise in my FICO score...

Re: New tactic?

tcbofade — Wed, 05 Dec 2012 02:50:12 GMT

@Anonymous wrote:

Get this down to 1%, and i see your score going up 60 points

I'm sure that you're correct, but that isn't an option for me right now.

Re: New tactic?

Cdnewmanpac — Wed, 05 Dec 2012 03:00:11 GMT

To no longer be considered"maxed out" by fico, you need to get every card below 80%, not 90%. also, if it will really take until February to pay your cards below 90%, you should stop reading this forum, stop worrying about getting "better" cards and focus on paying down your debt. The only thing you should be thinking about beyond that is whether a consolidation loan might help you in getting your debt safely under control (and taking utilization out of the equation).

Re: New tactic?

SnackTrader — Wed, 05 Dec 2012 03:00:51 GMT

I suppose if your score is the most important thing to you, reducing all balances to under 90% might have an impact. But I question whether or not that impact will be any greater than if you just apply that same amount of money on the highest APR card, thus still bringing down your total util, and saving you money on interest.

My money would all go to the highest interest if I was in your situation (and I sort of am, $60k in student loan debt :/).

Re: New tactic?

creditnocash — Wed, 05 Dec 2012 03:01:24 GMT

do you own a home? if you did id suggest a home equity.

interest is only as low as 2.99 percent

(obviously wouldnt touch the 0%)

but seriously.

depending on your limits/debt that could take years to pay off.

not to be a bummer but id suggest pyramiding for you.

starting with the highest apr.

Re: New tactic?

pdog661 — Wed, 05 Dec 2012 03:11:16 GMT

If you are not planning any major credit involved purchases in the near future do not worry about your credit score.

Worry about how to savings thousands in interest by paying smart and getting out of debit. Moving from a 64 to a 9 % UTL will offer you a huge boost to your score, but not doing this smartly may cost you a large sum in interest.

Get into excel and list all accounts by APR, and balance. Figure out your budget. Pay all high APRs first, and then once you pay of one high APR snowball the payment you were paying on that APR onto the next highest APR. Your debit will disappear rapidly.

Re: New tactic?

youngandcreditwrthy — Wed, 05 Dec 2012 03:15:18 GMT

Need to get it at around 10%.

Some ideas:
A) xfer high rate bals to a prime card (need a 680 fico most likely)
B) pay down debt more quickly
C) request clis on all accounts with sps only

Obviously, you don't have to pick one of the above... They all kinda work together!

Re: New tactic?

youngandcreditwrthy — Wed, 05 Dec 2012 03:17:10 GMT

Good bal xfer cards:
Most Barclay's cards
Chase Slate
Chase Freedom
Discover Motiva
Citi (maybe lol)

Re: New tactic?

thebanjoman — Thu, 06 Dec 2012 02:37:08 GMT

tcbofade wrote:

I need to improve my score to qualify for the "better" cards with lower rates...
I am hoping that having zero cards reporting over 90% will result in a 20something point rise in my FICO score...

I've been following your progress for a while now. Please take this post as well meaning and hopefully helpful, and in no way negative:

As much as balance transfers, low(er) interest cards, and consolidation loans are useful means to help you pay off your debt. Please do not forget they are not an end in-and-of themselves.

As useful as a FICO score is in judging your credit worthiness, it's also a fickle and odd formula. If you do nothing but stay the same, generally your score will rise slightly just from aging. Some point(s) may cause you to shift the comparison buckets you're in and generate odd shifts in scores that aren't as explainable as a shift from paying off a card or reducing utilization. If that score isn't of use to you in the near-term (i.e. buying a house), and it will take until February to reduce all cards below 90% util for the slim hope that you'll get a 20 pt boost. your FICO score is likely a poor judge of your progress (though a happy side-effect). You've managed to pull off some CLIs along the way, which help too.

You seemed to make good progress when you had a set goal (payoff one card per month) and your score boosts were a side-effect of otherwise clearly measurable progress. You were even ahead of that goal for much of the year, but it sounds like that progress fell off more recently.

Set your long-term goal, and try not to let short-term score changes distract you.

IF you're only goal is to pay off your cards, I'd suggest:

- Targeting either low balances to knock out a few more cards with balances (% cards with balances affects score) and to refocus those minimum payments to other cards

- Targeting high APR cards, to try to save interest expenses (saves $, may reduce high util on some cards)

- Knock out "low-hanging fruit" balances when the opportunity strikes (i.e. can be fully paid off within one or two months), and otherwise targeting High APR cards.

If you're a little more impatient, do one of the above two strategies and either target just the DW cards first, just your cards first, or to help both out a bit in the score department, just focus on the joint cards first. The rest (Scores, CLIs, BT offers, prime cards) will keep coming along the way.

If there's a different goal, (house, other) of course develop your plan to bring you closer to achieving that first. If you want more specific advice, and are comfortable with, reshare the details of your card balances/APRs/Goal. If not, you seem to have a pretty good handle on modeling it out.

As your siggy says: Zero percent is where the devil lies. Be careful out there.

Re: New tactic?

tcbofade — Thu, 06 Dec 2012 03:00:50 GMT

Thanks to all.

Yes, progress slowed way down the last few months...DW was out of work for 90 days or so...

I just sent my first "extra" CC payment last weekend, and am pondering my options...

Re: New tactic?

thebanjoman — Thu, 06 Dec 2012 03:12:15 GMT

Missed that bit, or forgot. I apologize. As I said, I just don't want you to get lost in chasing after a few points here and there to the detriment of your long-term plans.

Good luck

Re: New tactic?

tcbofade — Thu, 06 Dec 2012 12:48:44 GMT

No worries, no offense taken, I promise.

DW did point out to me last night that we have made considerable progress on FICO score over the last 12 months....I guess I'm just a bit impatient.

Re: New tactic?

AF_23 — Thu, 06 Dec 2012 12:52:51 GMT

Stop paying attention to scores because they will hinder your growth or even become upsetting, and just attack it logically. Dump the higher APRs on to a decent BT offer.

Re: New tactic?

tcbofade — Thu, 06 Dec 2012 12:59:19 GMT

@AF_23 wrote:
Stop paying attention to scores because they will hinder your growth or even become upsetting, and just attack it logically. Dump the higher APRs on to a decent BT offer.

Sure....except that I need a better score to GET a decent BT offer...