Credit Line Decreases?

[Anonymous]

Hi, I appreciate any advice you can give me. I opened several cards in the past 18 months. In the beginning I didn't charge much and I paid them in full each month. Most are small cards with small limits but NFCU limit is 6500. I lost my job and had to use my cards basically to survive. I am at very high util right now but I have never missed a payment even though sometimes all I can do is pay the minimum. I just got back to work and I want to pay my cards down. Can anyone tell me which of these cards are most likely to balance chase me? I'd like to pay a lot on my NFCU card because they have been so good to me but I'm scared of balance chasing and can't afford not to have the card available for emergencies. I don't have any savings right now.

Here are my cards and credit limits. All are close to the limit.

NFCU= $6500

Capitol One $500

Barclay =$1000

Target=$200

First Prem =$400 ( Gosh how I hate this card but it was my first one opened)

Amazon Store Card = $ 600

Walmart = $500

Hooters=$300

So far all I have seen is that NFCU sent me a letter saying my rate was going up on my Navchek account due to my score dropping to 620 this summer. They didn't lower or close anything. I guess my worst fear is NFCU will cld me. The rest of them I could really care less about because once I pay them I don't even want to use them anymore anyway but would rather it not hurt my scores by lowering my limit. I've maintained this high util for about 9 months now. A couple times I've paid a few hundred dollars on a card and haven't seen a decrease yet on any of them. I usually end up charging it right back up since I have very little income.

Now that I'm working I just want to pay them down but in order to do so I won't be able to put anything into savings for emergencies. Any advice ? Thanks

[tcbofade]

Been there, done that.

Pay off the Hooters card...Merrick bank generally will give you a cli when you pay down a balance that you've been carrying.

I have no experience with NFCU, but have read only good things about them on this site...pay it off as you can...I think that as long as you don't go late, I would not expect a cld.

Good luck! 

[armywifey85]

Start paying the small balances off first, then close everyone except NFCU, Barclays and maybe keep one of the stores that you shop the most. If your paying you'll be fine with Navy. Keep a small amount of cards so you can get out debt faster if another emergency arises.

[Creditaddict]

I would also say start with the small ones and get them out of the way... very unlikely they would decrease... in fact GE cards as you pay off are likely to actually give you CLI if you ask for it.

I would also maybe have a chat with Navy after you get a couple paid about doing a consolidation loan for the rest...

[tntexans72]

Whatever you do, don't be late on any payments. At least make the minimum. If your late on 1 card, your rates may go up across the board. Good luck!!

[Walt_K]

This is just a gut-feeling response, I can't predict what any of the lenders are going to do and don't have any experience with Navy, so take it for what it is worth.  My feeling is that Navy is going to do what they are going to do, so you shouldn't worry about it too much.  But I'd imagine if you started paying their card down first and they softed your reports, it might look bad to them that all of your other cards are maxed out, which could lead to balance chasing.  So, I'd probably start with the other cards so that when you start making major headway with the Navy balance, when they soft your reports, they will see that all of your other cards are at $0.  At the same time, I'd probably pay a little more than the minimum on the Navy account.

[Anonymous]

Thanks for the advice everyone. I really appreciate it. I have never been late on any of them and will start paying off the smallest ones first. I really appreciate the thoughts on my situation!

[Anonymous]

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@Anonymous wrote:

Thanks for the advice everyone. I really appreciate it. I have never been late on any of them and will start paying off the smallest ones first. I really appreciate the thoughts on my situation!

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That really is the best advice. Pay the small cards off first, then decide what you actually want to keep around.

NFCU seems very reasonable, as long as you don't burn them they probably won't burn you. Of course it's not guaranteed, but as long as they can see that you're trying to pay it off in a timely manner, I doubt they'll hit you with a CLD. Plus once your other (smaller) balances are paid off, your whole credit report will look better so you don't look like you're as much of a credit risk.

I've had some bad months this year due to business being slow, so my balances/util% on my cards went up, but I made sure to pay them off as soon as I got a bigger paycheck again. None of the credit card companies have complained at all, I think they just enjoy getting the extra interest income for a few months and then seeing the credit balances stabilize themselves again.

Plus once your credit report looks better again, you can ask them to decrease your APR back to where it belongs.

[clocktick]

I have been here too.

What are your currecnt interest %s on your cards and what are the minimum payments?  How much exactly can yo u pay on all of them each month? 

It looks like you have about $10k in debt.  Would you feel comfortable calling any of them to ask if they'll lower your interest rates?  Is there anything you can sell (craigslist, eBay, yard sale, etc.) to get more money?  Can you cut back on anything, even temporary, like cable, Netflix, going out, etc.?

Sorry you're going through this but it looks like you're doing okay for now.  Perhaps Navy would even give you a loan to consolidate your bills?  I wouldn't keep them all open afterwards though (sounds like you wouldn't mind closing some of them anyway) to avoid this happening again. 

Lowering your balances would obviously raise your scores.  Paying off more than half would too.  You have 8 meaning you'd have to pay off 5.  It may take a while, but you can do this!  Keep asking questions, make some calls - in time, things will work out.

[Happychap]

Been there too.   Amazon will prob balance chase you, they did with me to 250. I have paid them off now and they have since increased my limit to 450.  Stil not as high as it was though.