topic Re: Credit card maxed out help... in General Credit Topics

Credit card maxed out help...

Anonymous — Wed, 12 Jun 2019 01:37:37 GMT

I have a card with a line of credit of $2,500 and has a balance of $2,123. Does anyone know what amount I need to pay to get this card down to increase myFico score?

Re: Credit card maxed out help...

Anonymous — Wed, 12 Jun 2019 01:45:50 GMT

Not enough information here to say for sure.

What you'd have to do is list out ALL of your credit cards with their current reported balances and limits, not just this one.

It's possible you could gain 100 points from paying that card down significantly. It's also possible you could gain 0 points from paying it down significantly. Without knowing what's going on with the rest of your revolvers there's no real advice that can be given yet.

Re: Credit card maxed out help...

Anonymous — Wed, 12 Jun 2019 03:00:37 GMT

Below are all my credit cards and balances. The ones in red are whats hurting my credit score I think. I have about $4,000 in cash to pay down credit cards. Which one would you pay down and amount? And by doing this can it increase my score?

Any help would be much apprecicated! Im in the process of getting a 20 year mortgage. I delayed it from last month and about to start the process in 2 weeks. By the way I have never missed a single payment to any creditor! Never!

Account Name	Balance	Credit Limit	Usage	Type	Status	Opened On
AMEX XXXXXXXXXX	$1,813	$27,000	7%	Revolving	Current	Jul 2015
AMEX XXXXXXXXXX	$1,672	-	-	Revolving	Current	Jun 2018
BARCLAYS BANK DELAWARE XXXXXXXXX	$651	$5,500	12%	Revolving	Current	Nov 2018
BMW FINANCIAL SERVICES XXXXXXX	$50,296	-	-	Installment	Current	Nov 2018
BMW FINANCIAL SERVICES XXXXXXXX	$28,626	-	-	Installment	Current	Nov 2018
CAP1/BASS XXXXXXXXXXXXXXX	$1,448	$7,500	19%	Revolving	Current	Nov 2011
CAPITAL ONE BANK USA N XXXXXXXXXX	$63	$1,300	5%	Revolving	Current	Mar 2011
CAPITAL ONE BANK USA N XXXXXXXXXXX	$0	$300	0%	Revolving	Current	Nov 2010
CBNA XXXXXXXXXXXXXX	$0	$300	0%	Revolving	Current	Aug 2011
CCS/FIRST SAVINGS BANK XXXXXXXXXXXXXX	$0	$1,400	0%	Revolving	Current	Aug 2011
CITICARDS CBNA XXXXXXXXXX	$1,762	$3,800	46%	Revolving	Current	Nov 2011
COMENITYBANK/VICTORIA XXXXXXXXXX	$471	$2,000	24%	Revolving	Current	Aug 2015
COMENITYBK/WILLIAMS VS XXXXXXXXXX	$873	$3,500	25%	Revolving	Current	Aug 2015
COMPASS BANK XXXXXXXXXXXXXXX	$647	$5,000	13%	Revolving	Current	Nov 2018
DISCOVER FIN SVCS LLC XXXXXXXXXXX	$1,803	$9,000	20%	Revolving	Current	Nov 2011
FIRST PREMIER BANK XXXXXXXXXXXXXXX	$297	$950	31%	Revolving	Current	Aug 2015
FIRST PREMIER BANK XXXXXXXXXXXXXXX	$549	$1,250	44%	Revolving	Current	Nov 2011
JPMCB CARD XXXXXXXXXXX	$1,739	$5,000	35%	Revolving	Current	May 2014
JPMCB CARD XXXXXXXXXXX	$164	$8,100	2%	Revolving	Current	Nov 2018
MERCURY CARD/FB&T/TSYS XXXXXXXXX	$244	$6,250	4%	Revolving	Current	Jun 2014
SEARS/CBNA XXXXXXXXXXXXXXX	$206	$4,000	5%	Revolving	Current	Aug 2015
SYNCB/LOWES XXXXXXXXXXXX	$2,756	$4,000	69%	Revolving	Current	May 2014
SYNCB/SAMS CLUB DC XXXXXXXXXXX	$3,950	$8,000	49%	Revolving	Current	Aug 2015
SYNCB/TOYSRUS XXXXXXXXXX	$2,123	$2,500	85%	Revolving	Current	Aug 2015
SYNCB/WALMART XXXXXXXXXXX	$1,314	$5,400	24%	Revolving	Current	May 2012
TD BANK USA/TARGETCRED XXXXXXXXXXXXXXX	$789	$3,600	22%	Revolving	Current	Aug 2015
THD/CBNA XXXXXXXXXXXXXX	$684	$1,500	46%	Revolving	Current	May 2012
TRACTOR SUPPLY/CBNA XXXXXXXXXXXXXX	$213	$1,300	16%	Revolving	Current	May 2012
WF CRD SVC XXXXXXXXX	$62	$4,500	1%	Revolving	Current	Nov 2018

Re: Credit card maxed out help...

Anonymous — Wed, 12 Jun 2019 03:31:28 GMT

Tried to respond but it was deleted as SPAM! I'm worried that one of the credit cards in red might be the problem due to it being such a high utilization. Can someone take a look and tell me how much I would have to pay down in the RED where it could increase myFico score? And how much it might increase?

29 Open Accounts

Account Name	Balance	Credit Limit	Usage	Type	Status	Opened On
AMEX XXXXXXXXXX	$1,813	$27,000	7%	Revolving	Current	Jul 2015
AMEX XXXXXXXXXX	$1,672	-	-	Revolving	Current	Jun 2018
BARCLAYS BANK DELAWARE XXXXXXXXX	$651	$5,500	12%	Revolving	Current	Nov 2018
BMW FINANCIAL SERVICES XXXX	$50,296	-	-	Installment	Current	Nov 2018
BMW FINANCIAL SERVICES XXXX	$28,626	-	-	Installment	Current	Nov 2018
CAP1/BASS XXXXXXXXXX	$1,448	$7,500	19%	Revolving	Current	Nov 2011
CAPITAL ONE BANK USA N XXXXXX	$63	$1,300	5%	Revolving	Current	Mar 2011
CAPITAL ONE BANK USA N XXXXXX	$0	$300	0%	Revolving	Current	Nov 2010
CBNA XXXXXXXXXX	$0	$300	0%	Revolving	Current	Aug 2011
CCS/FIRST SAVINGS BANK XXXXXXXXXX	$0	$1,400	0%	Revolving	Current	Aug 2011
CITICARDS CBNA XXXXXX	$1,762	$3,800	46%	Revolving	Current	Nov 2011
COMENITYBANK/VICTORIA XXXXXX	$471	$2,000	24%	Revolving	Current	Aug 2015
COMENITYBK/WILLIAMS VS XXXXXX	$873	$3,500	25%	Revolving	Current	Aug 2015
COMPASS BANK XXXXXXXXXX	$647	$5,000	13%	Revolving	Current	Nov 2018
DISCOVER FIN SVCS LLC XXXXXX	$1,803	$9,000	20%	Revolving	Current	Nov 2011
FIRST PREMIER BANK XXXXXXXXXX	$297	$950	31%	Revolving	Current	Aug 2015
FIRST PREMIER BANK XXXXXXXXXX	$549	$1,250	44%	Revolving	Current	Nov 2011
JPMCB CARD XXXXXX	$1,739	$5,000	35%	Revolving	Current	May 2014
JPMCB CARD XXXXXX	$164	$8,100	2%	Revolving	Current	Nov 2018
MERCURY CARD/FB&T/TSYS XXXX	$244	$6,250	4%	Revolving	Current	Jun 2014
SEARS/CBNA XXXXXXXXXX	$206	$4,000	5%	Revolving	Current	Aug 2015
SYNCB/LOWES XXXXXX	$2,756	$4,000	69%	Revolving	Current	May 2014
SYNCB/SAMS CLUB DC XXXXXX	$3,950	$8,000	49%	Revolving	Current	Aug 2015
SYNCB/TOYSRUS XXXXXX	$2,123	$2,500	85%	Revolving	Current	Aug 2015
SYNCB/WALMART XXXXXX	$1,314	$5,400	24%	Revolving	Current	May 2012
TD BANK USA/TARGETCRED XXXXXXXXXX	$789	$3,600	22%	Revolving	Current	Aug 2015
THD/CBNA XXXXXXXXXX	$684	$1,500	46%	Revolving	Current	May 2012
TRACTOR SUPPLY/CBNA XXXXXXXXXX	$213	$1,300	16%	Revolving	Current	May 2012
WF CRD SVC XXXX	$62	$4,500	1%	Revolving	Current	Nov 2018

Re: Credit card maxed out help...

Revelate — Wed, 12 Jun 2019 03:35:07 GMT

Probably not that much as a swag as your aggregate isn’t bad: sure you might get some points paying it down under 80% (maybe, individual metrics aren’t great) but generally speaking you want to be paying off your balances in full every month if you can.

Paying interest is financial bleeding when talking most CC APR’s; if you are PIFing anyway then a balance near max doesn’t matter in the slightest if it is gone next month.

Re: Credit card maxed out help...

sarge12 — Wed, 12 Jun 2019 04:15:07 GMT

OP....I doubt paying the utilization down on any one card will effect much. That is a lot of debt to a lot of different places. I do not know your income, but all sharp objects would need to be removed from my acces if I had to juggle that many debts evey month. I suspect you need a budget and you really seem to need to use a srategy that makes it simpler to do by having the bulk of your debts spread across a smaller number of cards. Having debt so spread makes mistakes like missed payments very easy to do, but having debt on such a high percentage of your current credit cards is probably a larger drag on scores than utilization. I would in your case try to pay off some of the smaller ones to get the number of places I had to pay in more managable numbers.

Re: Credit card maxed out help...

Jnbmom — Wed, 12 Jun 2019 04:37:39 GMT

I agree with the others, simply paying down some of the "red" balances is not going to make much of a difference scoring wise.

Honestly I don't know how you keep up with all the accounts and balances. I would as others suggested pay off some of the smaller ones first and bring them to zero. Then start tackling the other ones, you didn't mentioned interest rates, but after you get some of the smaller ones zeroed out, start working on possibly the "snowball method" and get the higher rated ones paid off.

Also not sure with your range of cards you are carrying not one but two First premier cards, I would close them after the are paid off.

Re: Credit card maxed out help...

Anonymous — Wed, 12 Jun 2019 04:47:54 GMT

OP, thanks for listing out all of your accounts with balances. It is worth noting here that the OP is looking for advice on how to raise his mortgage scores, as he's planning on a mortgage app in the near future. I believe you referenced a EX Fico score, but you didn't specifically state if it was a mortgage score or not. Can you confirm which score it was that you referenced as (I believe) 717?

What I would suggest you do is pay both of your cards that are over 48.9% to down below 48.9% utilization. It looks like that can be done for around $1700-$1800. With any remaining cash that you have available for CC balance paydowns, I'd suggest paying off as many accounts as you can. In order to pay off the most, naturally starting with the ones with the lowest balances makes the most sense. Mortgage scores for many are very sensitive to number of accounts with balances, so if you are able to pay off a bunch of them, it could help you a decent amount especially if you take your highest individual utilization card from 85% down to 48.9% or less. From what you said via PM it sounds like you could pay off about 9-10 of them based on what you have available to throw at those balances, which is pretty significant in terms of reducing number of accounts with balances.

Re: Credit card maxed out help...

Anonymous — Wed, 12 Jun 2019 05:04:21 GMT

I have a 717 with experian. Thank you all that have responded. Believe it or not, I've never missed a payment nor have I been late. It's simple for me and I pay at least a week prior to the card being due. It's an infatuation for me.

One asked income and I generate over $100,000 plus a year and have investments too that generate income. And a small Bitcoin mining farm

Re: Credit card maxed out help...

sarge12 — Wed, 12 Jun 2019 05:58:22 GMT

@Anonymous wrote:
I have a 717 with experian. Thank you all that have responded. Believe it or not, I've never missed a payment nor have I been late. It's simple for me and I pay at least a week prior to the card being due. It's an infatuation for me.

One asked income and I generate over $100,000 plus a year and have investments too that generate income. And a small Bitcoin mining farm

I am sure that you have a lot of them set for autopay, but if not, you should. What happens if you wind-up hospitalized and unconscious? Is someone set to deal with this many payments for you? Your income seems high enough to pay these little balances off, and I would. Having that many to deal with every month would drive me crazy. Mad respect for you never having a late payment. or having a problem sleeping at night.

Re: Credit card maxed out help...

FireMedic1 — Wed, 12 Jun 2019 10:39:10 GMT

Just to add you have more then 50% of your cards reporting. I think I counted 24 out of 29 revolvers reporting. Another hit. There's more to it like the others have said thats dinging you. Get below half the cards reporting also could help. Dont know how you do it. My 8 cards are a PITA as it is. Good Luck!

Re: Credit card maxed out help...

Anonymous — Wed, 12 Jun 2019 12:33:55 GMT

Also agreed with all of the above - zero out as many as possible after getting all below 48.9% (shoot for 47% so that it stays under the threshold after interest is added). That will be your best bet, and then sock drawer all but a few cards, paid off or not, and let them sit at zero or continue paying them to zero. Let them benefit you, not harm your scores.

Re: Credit card maxed out help...

Anonymous — Wed, 12 Jun 2019 12:38:56 GMT

@Anonymous wrote:
I have a 717 with experian.

We still need to know the scoring model used to generate that score. Unless it's a mortgage score, it isn't relevant for your upcoming mortgage app. If it's (say) an EX Fico 8 score, while a very common and worthwhile score, it's irrelevant to your current goal.

Re: Credit card maxed out help...

Anonymous — Wed, 12 Jun 2019 12:45:30 GMT

"if not, you should. What happens if you wind-up hospitalized and unconscious?"

I personally never did auto pay but your simple explanation just convinced me!

Re: Credit card maxed out help...

Anonymous — Wed, 12 Jun 2019 12:49:22 GMT

Like the others said, you are at 21% total which technically isn't bad, but what possible reason could one have to have all this debt spread out like this. If you paid it all off tomorrow, but kept about 15k on one of the high limit cards, you wouldn't see a FICO decrease. There is just no value to this and all it does it ensure more room for mistakes. When I speak to people who do this the root cause is that with more cards at low balances it psychologically makes them feel like they don't have much debt.

Re: Credit card maxed out help...

Anonymous — Wed, 12 Jun 2019 13:17:18 GMT

@CaliforniaDreaming87, Hello, I have posted with what seems to be just a bit more debt than you have, I did not caculate all of yours just glanced at the numbers, also I am no finacial expert and not looking to take on a mortgage anytime soon until I finish my current obligations, but it seems kinda like we are the same boat or have a similar mindset I too have never missed a payment with any of my creditors or any bill at that point ever, and as you say you are grossing at least 100k, I do not think my gross is that far yet but I keep on steadliy increasing it but hard to tell since I have not been at my job long enough to see a full years tax return, but I know in the last 4 months I have grossed almost 27k, my job can sometimes be inconsistent gross 2300 one week then only 1300 the next, but I have lots of side hustles making up the difference, and very low living expenses, again maybe not like you if you already have money invested in business, but I too am like you its an infactuation, kinda like a game to me paying off my debt, not that this is a fun game just another challenge like a video game that I have to beat.

I have learned a lot in the past few months from lots of options I have and programs and BK, also don't know your current living situation or expenses, I was on the brink of BK for sure if I hadn't cut my expenses and finally landed a job that I am making good enough money to pay back my debt.

Also like another poster said I am on a thin piece of ice if something were to happen to me that I could not work, I would be done for sure, but I am putting my odds with me being in my late 20's on paying this off at worse in a few yrs and it not taking too much of a toll on me as I still have plenty of energy and stamina. Again do not know your age or living situation.

I have a pretty good plan and have started with the snowball method already paying off lots of my smaller balance cards, getting rid of that interest and payments for good even though some of the aprs were a little less than my higher balance accounts, while still staying motivated crossing off each card I pay off.

It sounds like you are pretty well off, if even considering a mortgage at this point with that debt while I am in a studio on an air mattress, but anyways I talked to debt relief companies and after doing more due dilligence thats not an option as customer service was nice and almost sold me on an unattainable dream of my credit will barley be harmed and only making a small payment I would be out of this in no time, I realized this would be a worse option than BK very real possiblity of being sued especially with my amount of debt/sheriffs showing up at my residence or job and calls to anyone they can research associated with me as well as endless calls and letters and tacked on interest and late fees, Then from BK attorney's I was told I am making too much for a chap 7 and a 13 I would still pay back a big portion of my debt, possibly through wage garnishment with my credit being destroyed still, Now to DMP's sounds like a decent option if all else fails, as they will negotiate with my creditors a lower interest rate and payment with no longer than a 5 yr plan but it would still be on me to call all my creditors to get my payment dates moved to about the same date so my payment to them would disperse and cover all my accounts at the same time, and negatively I would have all my accounts listed in the plan closed out as well as being told Amex will stay say the account was settled instead of paid as agreed.

Anyways where I am at now, is I have managed to pay down about 10k putting my debt at a little over 100k now, good start for me, and the general consensus from a BK attorney and a couple of Credit counseling services have been just be paient and pay this off with the type of money I am making and take it as a hard learned learning experience, and ask why am I talking to them, as most of these programs are designed for people that are already deliquent and can't keep up with their payments anymore or no a finacial hardship is coming, where interest and late fee's have already accumalated making it impossible for them to come back off whatever their sarlary is.

So what I have started doing is calling all my creditors directly and I let them know my situation, and told them I have all intention on paying this debt off but I just need a little help starting with getting all my payments consolidated into the first week of every month, so as someone else posted it's easier to keep up with so many to not miss one on accident and to just put almost 1 payment in a week out.

Next I have called and been pretty straight to the point and said I want to pay this off but at the end of the day with me just making min payments I will be doing this for the next 30yrs which I politely explained I am not gonna do, it would make no logical sense in me wasting more yrs than I have been alive to paying this off, which they all almost have agreed and immediately gave me very good options by lowering my interest significantly while some I could keep my accounts open while others would be closed but with no impact besides my credit utilization going down.

I stayed to the point of telling them I have been a great customer and never missed a payment but not directly telling them how much I am really making as it is a very real possiblity that I could just continue paying this off just the way it sits with all my current interest rates still in about 3 years, after adding all my payments that my statements say If I were to make this payment I would have paid off in 3 yrs, but did not want to inform them of this because I know they are a business and at the end of the day I am making them lots of money and I am sure they could care less about my living situation as long as I have just enough to make my payments.

Lastly from all my research and talking to people a Consolidation loan is what would be the best option for me as what lots of these companies as well told me, as if I could get a loan at say a 10percent apr I could have this knocked out in a little over 2yrs. Right now its just hard because my credit limits have been cut by so much and my utilization is up so high even though I would be the perfect customer, never a missed payment, but just getting a lower interest would speed this up so much more without any hit of closing any accounts out. Most of my creditors tell me how much they value me lol (I bet with the interest I have paid) and I know these companies want to keep my business and will drop a lot of things also they said they could defer payments as well, before they want to hear of a BK which I was never considering lol

So as of now I have not excepted any of their offers just yet as I am still getting all my steps together first by conslodating all into the same week payment, while still paying down greatly then I want to continue to research on any consolidation offers.

Not sure if this is anything that helps just letting you know I am in a tough but very managebale situation, and just keep taking it day by day, and making progress, but again you sound like you may be in a very different ball park getting a mortgage, also I am not expert but I don't think those 2 cards with those small balances would affect much even if the utilization is high, its more about the bigger picture, and it looks like you have tons of credit available and used I doubt they would be looking at those small balances but the bigger pic of total utilization and debt to income ratios.

If there is something I may have mentioned and or this more your type of situation please message me, I am learning everyday as well.

Thanks and have a Great Day.

Re: Credit card maxed out help...

Remedios — Wed, 12 Jun 2019 13:53:54 GMT

@Anonymous wrote:
@CaliforniaDreaming87 or anyone else Post Script, I again would appreciate any advice on getting a consolidation loan, if anyone knows a good reputable company, I keep getting offers but I have not tried to apply for awhile since before I had offers then go to apply and get shot down, reasons being credit utilization too high, and or debt to income ratio.

Would be greatly appreciated if anyone had any ideas on a lender, I really only need/want to consolidate my Cap 1 and Citibank cards totaling about 23k but with 26-27 interest, those are the ones killing me, have offers from them but with potential closing of accounts which Cap 1 is my oldest 10yrs but will do and if I go ahead and take their offers which are the 2 that aren't super great, especially compared to some of my cards that are only 12-17percent but willing to drop to 6percent or less, just want to utilize my options first and see if there is something better..

Thank you again

If you're looking for a personal loan, fell free to post your question in Personal Finance board https://ficoforums.myfico.com/t5/Personal-Finance/bd-p/Retirement

Lets leave this thread for OP and her questions, otherwise it gets very confusing for everyone involved.

Re: Credit card maxed out help...

Anonymous — Wed, 12 Jun 2019 14:13:46 GMT

@Sarge12, Yes that is how I feel all only use plastic ware now, lol, no sharp objects, seriously OP is in a realistic situation, if you have read my post I am seriously putting a hurt on my debt about 10k in 4 months at my rate I could be debt free in 40 plus months but I continue to increase my income, and hopefully can get a consolidation loan while most of my creditors have given me already great offers.

Plus, I am doing just that knocking off all my smaller ones that I can and putting the rest on or about the same payment date, its hard work but not impossible, I also have/had many accounts like this I was juggling without missing a payment I just been knocking them off at least the small ones eliminating the interest and any payment 1 by 1.

If Op is making over 100k a year then it should not be a problem plus it looks like he owns 2 bmw's could possibly sell and put a lot of cash towards higher payments interest while taking a hit on deperciation of the vehicles and has money invested in businesses.

Does not seem far fetched, depending on living expenses and other obligations such as children/spouse/medical....etc don't know.

Re: Credit card maxed out help...

Anonymous — Wed, 12 Jun 2019 14:18:31 GMT

@Remedios, Sorry I am still kinda new here I will post where appropriate, was not trying to confuse anyone, Apologizes to OP

Re: Credit card maxed out help...

DebtJoe — Sun, 16 Jun 2019 01:28:27 GMT

@Anonymous wrote:
Like the others said, you are at 21% total which technically isn't bad, but what possible reason could one have to have all this debt spread out like this. If you paid it all off tomorrow, but kept about 15k on one of the high limit cards, you wouldn't see a FICO decrease. There is just no value to this and all it does it ensure more room for mistakes. When I speak to people who do this the root cause is that with more cards at low balances it psychologically makes them feel like they don't have much debt.

Wow, this hit home with me because this was literally me many years ago. I juggled a ton of cards that I thought I had under control because the debt was spread. This was just a false flag and I screwed myself in the end. In my effort to rebuild, I hit a homerun with my Discover Balance Transfer card on the SL (was literally shocked when approved), put all my remaining debt there and that is the only thing I let report. I will have everything paid off well before the promo period ends. By that time my last 2 reporting charge offs will fall off and I'll be "clean" for the first time in almost 10 years.