Chase, Balance Chasing and Closing Accounts.

[youngandcreditwrthy]

at the end of the day, we are talking banks and risks.

banks charge interest to take on risk.

it sounds like your friend has done good by paying things down and given the trend, it looks great.

like I said, Id bet he comes out of this with CLIs... and Im serious... he should be asking for CLIs already considering the utilization drop.

banks look at patterns. each payment that's made is a data point for them. PIF is the best way to approach but if you carry a balance.. and you make small payments, TRANSITION into making larger ones to pay them off. banks dont like to see minimum payments and then HUGE PAYMENTS bc they think its from something other than your income and the algorithms then AUTO CLD or AUTO close accounts.

and BOA??? they usually send out 0% bT checks every week. He needs to call them and ask for a BT offer or a lower rate.

you gotta call these companies directly and haggle with them sometimes. they can do alot for you.

Make sure your friends income is correct with each bank respectively. or just tell him to do that. I had a friend that didnt even know about amexs 3xcli and got her CL raised from 5k to 15k.

as far as score goes, yes any time you go over 30% on a card, you lose A LOT of points on your fico scores.

[youngandcreditwrthy]

@ThomasJNewton   PS: that liquid fund he has needs to be put in some type of an account that's earning at least 5% interest with NSA in today's climate. I like upgrades' 5.07% account, but there are tons.. there are even CDs but you don't need to have the money tied up to get the interest.

5% interest on 25k is $60-70 a month that could go towards reducing interest charges.

[saltlakere]

"I’m very surprised Discover has not AA the limit yet!"

I had this happen to me recently. Citi was the first to act. I had two Discovers with fairly high limits and high balances. They AA'd the newest account which also had a nice 0% period. I quickly threw some money at it. They've only reduced the limit once. Of the two accounts, they only lowered the limit on the newer one. The older one they left alone.

[DebbsSeattle]

The friend is budgeting ~$15k a month to debt reduction. That is pretty committed to gettin' it done.