question on making CC snowball payments

pdxguy58 — Thu, 13 Aug 2015 00:06:51 GMT

A question has come to mind in terms of paying down my CC debt. This is not about what strategy to use, etc. - this is about making the very actual payment to the CC co.

Back in 2002-ish, I had a card with Discover, no late payments, but high utilization. I was getting ready to take a couple weeks off for vacation. I would be travelling so lots of hotels, gas stations, etc. So I made a $1,000 payment to them. The usual monthly bill was $150-200-ish. Next thing I know, they forze the account for a "review" and then they flat-out cancelled the card. Their right to do so, of course, but threw an enormous wrench into my vacation plans. I paid off the balance with them, and they are now persona non grata to me as it were. I guess my action triggered some "red flag".

Now - 2015, I have some funds and wish to pay down my current CC's. I have high utilization (80%+), but no lates ever. Have EQ FICO08 of 687 earlier this week. I most definitely want to avoid a rerun of the Discover payment scenario, with BofA and Chase being the CC co's.. Have times changed and it's now okay to make $3000 payments where the monthly amount is $150 range, or should I pay a couple hundred per week, or ?? If someone has done something similiar and can share what worked for them that would be great.

Thanks!

Re: question on making CC snowball payments

EddieK — Thu, 13 Aug 2015 00:56:04 GMT

Depends. If you've been carrying 80%+ utilization for an extended period of time and only making minimum payments, there's a good chance you'll get balance chased. I'd make a few hundred dollar payment to each card every month going forward, you'll know within a couple statements if you're being balance chased.

Re: question on making CC snowball payments

Anonymous — Thu, 13 Aug 2015 01:17:06 GMT

I have had luck making smaller payments throughout the month instead of one large payment.

In one card, I paid about $800 spread out over 5 payments in one month, next thing I know they gave me a $2k CLI

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question on making CC snowball payments

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