topic Re: Paying off multiple cards, or towards 1 card? in General Credit Topics

Paying off multiple cards, or towards 1 card?

Anonymous — Wed, 11 Dec 2019 17:42:05 GMT

Hi all.

I will be receiving a little sum of money any day now. With this money I can pay off three cards that have a 0% offer, or put it towards another card with a larger sum owed.

For scoring purposes, is it more beneficial to pay off the three cards, or towards the card with a higher amount of utilization?

By clearing up those three cards, that gives me $165 extra a month to put towards other 0% purchases I’m paying down. To me this is the way to go, but I’m not 100% sure if it is the most beneficial score wise.

All 3 cards I’d be paying off have about 3-4 months until they’re paid off if that makes a difference.

Thanks!

Re: Paying off multiple cards, or towards 1 card?

PutThatMoneyOnTheTable — Wed, 11 Dec 2019 17:50:56 GMT

@Anonymous wrote:
Hi all.

I will be receiving a little sum of money any day now. With this money I can pay off three cards that have a 0% offer, or put it towards another card with a larger sum owed.

For scoring purposes, is it more beneficial to pay off the three cards, or towards the card with a higher amount of utilization?

By clearing up those three cards, that gives me $165 extra a month to put towards other 0% purchases I’m paying down. To me this is the way to go, but I’m not 100% sure if it is the most beneficial score wise.

All 3 cards I’d be paying off have about 3-4 months until they’re paid off if that makes a difference.

Thanks!

IMHO without full disclosure, it is alway better to pay off a card that is charging interest first. Financial sense before scores.

But please provide us with a few more info (such as balances and interest charge/ or potential interest) therefore we can assist better

Re: Paying off multiple cards, or towards 1 card?

FireMedic1 — Wed, 11 Dec 2019 18:26:58 GMT

If you could list the accounts in question with Name/Credit Line/Balance/APR. This would light up everything needed to guide you in the right direction. Yes pay the interest one first. But util % will come to play also with whats leftover after you obtain this bonus.

Re: Paying off multiple cards, or towards 1 card?

Shooting-For-800 — Wed, 11 Dec 2019 19:34:43 GMT

I would pay whatever it takes to get each of your balances to the same utilization rate if APR is all the same.

Re: Paying off multiple cards, or towards 1 card?

Anonymous — Wed, 11 Dec 2019 20:39:02 GMT

Zales- 190/5000 0% APR purchase
Local CU- 250/5500 0% APR
Tractor Supply- 150/4250 0% APR
Venture- 3k/5500 25?%

I got a little zealous with the Venture card for Christmas shopping and unforeseen purchases. This is my catch all card anyways, I’d have it paid down in a few months (the unforeseen purchases).

Re: Paying off multiple cards, or towards 1 card?

PutThatMoneyOnTheTable — Wed, 11 Dec 2019 20:58:54 GMT

@Anonymous wrote:
Zales- 190/5000 0% APR purchase
Local CU- 250/5500 0% APR
Tractor Supply- 150/4250 0% APR
Venture- 3k/5500 25?%

I got a little zealous with the Venture card for Christmas shopping and unforeseen purchases. This is my catch all card anyways, I’d have it paid down in a few months (the unforeseen purchases).

25% on 3k is substantial enough for you to pay the venture card in full.

what will be the APR on the current 0% cards?

Re: Paying off multiple cards, or towards 1 card?

Anonymous — Wed, 11 Dec 2019 21:26:00 GMT

@PutThatMoneyOnTheTable wrote:
@Anonymous wrote:
Zales- 190/5000 0% APR purchase
Local CU- 250/5500 0% APR
Tractor Supply- 150/4250 0% APR
Venture- 3k/5500 25?%

I got a little zealous with the Venture card for Christmas shopping and unforeseen purchases. This is my catch all card anyways, I’d have it paid down in a few months (the unforeseen purchases).
25% on 3k is substantial enough for you to pay the venture card in full.
what will be the APR on the current 0% cards?

The APR on the 0% cards will be 26-28%

Re: Paying off multiple cards, or towards 1 card?

PutThatMoneyOnTheTable — Wed, 11 Dec 2019 21:34:01 GMT

@Anonymous wrote:
@PutThatMoneyOnTheTable wrote:
@Anonymous wrote:
Zales- 190/5000 0% APR purchase
Local CU- 250/5500 0% APR
Tractor Supply- 150/4250 0% APR
Venture- 3k/5500 25?%

I got a little zealous with the Venture card for Christmas shopping and unforeseen purchases. This is my catch all card anyways, I’d have it paid down in a few months (the unforeseen purchases).
25% on 3k is substantial enough for you to pay the venture card in full.
what will be the APR on the current 0% cards?

The APR on the 0% cards will be 26-28%

ok, so although the APR will be essentially be the same accross the board IMO, pay down the 3k (reducing the interest being paid and reducing utilization).

Try to pay the balances in full over the next 3-4 months with a focus of paying off the 3k. Try to keep utilization at or below 8.9% across all cards.

Re: Paying off multiple cards, or towards 1 card?

Anonymous — Wed, 11 Dec 2019 21:50:48 GMT

@PutThatMoneyOnTheTable wrote:
@Anonymous wrote:
@PutThatMoneyOnTheTable wrote:
@Anonymous wrote:
Zales- 190/5000 0% APR purchase
Local CU- 250/5500 0% APR
Tractor Supply- 150/4250 0% APR
Venture- 3k/5500 25?%

I got a little zealous with the Venture card for Christmas shopping and unforeseen purchases. This is my catch all card anyways, I’d have it paid down in a few months (the unforeseen purchases).
25% on 3k is substantial enough for you to pay the venture card in full.
what will be the APR on the current 0% cards?

The APR on the 0% cards will be 26-28%
ok, so although the APR will be essentially be the same accross the board IMO, pay down the 3k (reducing the interest being paid and reducing utilization).

Try to pay the balances in full over the next 3-4 months with a focus of paying off the 3k. Try to keep utilization at or below 8.9% across all cards.

Utilization is 22% across the board, but have 6 0% offers going at the moment

Re: Paying off multiple cards, or towards 1 card?

Shooting-For-800 — Thu, 12 Dec 2019 01:04:23 GMT

I would just pay them off starting with the smallest balance and working your way up.

No reason to keep those small balances.

Re: Paying off multiple cards, or towards 1 card?

Anonymous — Thu, 12 Dec 2019 19:34:14 GMT

Was it said what amount the sum of Money you'll be coming into is? That would better assist a person on where to suggest you apply it.

Also, when do the other card increase to normal APR?

@Anonymous wrote:
Zales- 190/5000 0% APR purchase
Local CU- 250/5500 0% APR
Tractor Supply- 150/4250 0% APR
Venture- 3k/5500 25?%

IMO, and if possible. I would pay off the Venture first as it's actually incurring interest as we speak. Then start applying payments to the others. Even when those higher rates kick in, it will be on much smaller balances than that $3K.

If paying off debt is your focus right now, then I wouldn't worry about scoring. Once you get a handle on it, then worry about how to boost scores for whatver reason you're doing it. That said, your Venture card is killing you by being over 50% util.

Re: Paying off multiple cards, or towards 1 card?

FireMedic1 — Fri, 13 Dec 2019 01:00:19 GMT

@Anonymous wrote:
Zales- 190/5000 0% APR purchase
Local CU- 250/5500 0% APR
Tractor Supply- 150/4250 0% APR
Venture- 3k/5500 25?%

I got a little zealous with the Venture card for Christmas shopping and unforeseen purchases. This is my catch all card anyways, I’d have it paid down in a few months (the unforeseen purchases).

I would pay off the Venture ASAP. The other cards are under the 8.9% threshold and not really hurting at the monent. Just having all the cards showing a balance is a ding right now. Once venture is paid down. Then hit up the one that will lose the 0% APR and PIF first. And so on. Once you get to 2 of 4 accounts reporting. That will help your scores also. Good Luck!

Re: Paying off multiple cards, or towards 1 card?

SouthJamaica — Sat, 14 Dec 2019 11:44:55 GMT

@Anonymous wrote:
Zales- 190/5000 0% APR purchase
Local CU- 250/5500 0% APR
Tractor Supply- 150/4250 0% APR
Venture- 3k/5500 25?%

I got a little zealous with the Venture card for Christmas shopping and unforeseen purchases. This is my catch all card anyways, I’d have it paid down in a few months (the unforeseen purchases).

In your case it's a no-brainer. Apply the $590 to the Venture card. Not only is that the best thing you could do for your scores, it also makes the most sense economically.