topic Re: what to pay on in Credit Cards

what to pay on

Anonymous — Thu, 21 Feb 2013 16:35:46 GMT

I have two cc one i owe 273 and one 760 should i pay off the 273 or make a payment to higher amount?

Re: what to pay on

pizzadude — Thu, 21 Feb 2013 16:38:14 GMT

@Anonymous wrote:
I have two cc one i owe 273 and one 760 should i pay off the 273 or make a payment to higher amount?

What are the credit limits associated with these balances ? Also are these accounts current, or are they behind ?

Re: what to pay on

boomersooner02000 — Thu, 21 Feb 2013 16:38:40 GMT

You should pay them both off in full before your due date. If you can't do that try and make it a practice to only charge what you can pay in full monthly.

Re: what to pay on

dodfire — Thu, 21 Feb 2013 16:40:22 GMT

What are your limits on the cards and what is the APR for them? How much cash do you have on hand to pay toward them?

Re: what to pay on

Anonymous — Thu, 21 Feb 2013 16:45:33 GMT

It is a NFCU and limit is 3000 for the one I owe 273 balance I normally pay balance in full each month, but the one I owe the most was a balance transfer I have enough to pay on the 273 in full or should that go to the higher balance?

Re: what to pay on

codimom — Thu, 21 Feb 2013 16:52:49 GMT

If you have the money to pay one in full, pay it. no need paying interest by splitting the payments. The throw every extra dime you have at the balance transfer.

edited, because apparently I can't spell...

Re: what to pay on

Anonymous — Thu, 21 Feb 2013 16:51:09 GMT

Thank you for the help I was not sure what was best and I want to show NFCU I am a good customer

Re: what to pay on

dodfire — Thu, 21 Feb 2013 16:57:39 GMT

What about the other card you owe 760 on? What is your limit? You need to look at your UTL% If your NFCU is $3k and you owe $276 you are less than 10%. If your other card is lets just say $1000 and you owe $760 you are at 75% which is killing your credit score!!!

Re: what to pay on

SnackTrader — Thu, 21 Feb 2013 18:04:16 GMT

Lets ignore credit score and assume that you don't need an optimal score right now. You only need to manage utility when you are applying for new cards or loans or if you are worried about making a lender nervous. All other times you should focus on reducing debt and interest charges.

This money should be used to pay down the higher APR balance. That's the answer. If one APR is 25% and the other is 20% you would be saving at minimum $1 over the next month in interest on $273 if you paid the money on the higher APR card. The more money you can pay to reduce interest charges, the better.

Re: what to pay on

Anonymous — Thu, 21 Feb 2013 18:12:31 GMT

The other was a 1000 limit I paid the 273 and went ahead and paid 300 on the 760 I am hoping this will help me in the future I am going to try to pay it off next month.

Re: what to pay on

dodfire — Thu, 21 Feb 2013 18:15:44 GMT

Good for you!!!!!

Re: what to pay on

codimom — Thu, 21 Feb 2013 19:39:55 GMT

@Anonymous wrote:
The other was a 1000 limit I paid the 273 and went ahead and paid 300 on the 760 I am hoping this will help me in the future I am going to try to pay it off next month.

Good, this means you'll get the util down quickly.

Re: what to pay on

Anonymous — Thu, 21 Feb 2013 20:06:09 GMT

thank you I am really trying to keep a good credit now