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Rebuilding Credit need advice on how to pay down CCs

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Sureshot
Member

Rebuilding Credit need advice on how to pay down CCs

Good morning everyone,

 

Im rebuilding credit and needs some advice on what to do first. I lost my job last year right after buying a house and then injury my knee 6 months later and couldnt work. im currently back on my feet with a awesome new career and money to get my score back to the high 600's-low 700's and needed to know what should i do first? 

 

i have about $6,000 dollars i want to spend towards knocking credit card usage down. should i use us towards paying discover card down first? and just pay the rest min payments? should i pay off the lower credit cards and take care of the discover later? just to max my results 

 

im currently in the mid 500s.

 

i have 8 credit cards 

Amex: CL:$500 usage: $450

Discover: CL: $11,100 usage: $10,900

Capital One: CL: $3500 usage:$ 3,200

Credit One: CL:2100 usage: $1950

Murcury Card: CL:2500 usage: $2450

Nebraska Funiture Mart: CL: $4,000 usage:$2400

Synchony bank: CL: 4,200 usage:$ 2850

Wells Fargo: CL $3,000 usage: $0 (Just paid off )

 

Mortage payment: Never late just got it last year july

Car Payment: Never late 

personal loan: CL:11,000 Credit amount owed $8,000

 no interest for 3 years just finish year 1 with no lates

3 collections:

1 barley a year old

other 2 are over 4-5 years old

 

30days:

1 recent in july smh first late un almost 3 years 

 

Message 1 of 7
6 REPLIES 6
gdale6
Moderator Emeritus

Re: Rebuilding Credit need advice on how

Moving to main CC forum for better results
Message 2 of 7
CreditInspired
Community Leader
Super Contributor

Re: Rebuilding Credit need advice on how to pay down CCs

Hi and welcome to MyFICO

 

If it were me, I would pay off AmX ($450), Credit One ($1950), and Mercury ($2450). Not only will this help your score by lowering your maxed out UT, it also increases the number of cards with $0 balances. 

 

Then, I would put the remaining $1,150 on Cap1. 

 

Glad to hear things are looking up and GL2U. 


|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macys $24.2K || NFCU CLOC $15K || NFCU Platinum $15K || CitiCostco $12.7K || Chase FU $12.7K || Apple Card $7K || BOA CashRewards $6K
Message 3 of 7
Anonymous
Not applicable

Re: Rebuilding Credit need advice on how to pay down CCs


@Sureshot wrote:

Good morning everyone,

 

Im rebuilding credit and needs some advice on what to do first. I lost my job last year right after buying a house and then injury my knee 6 months later and couldnt work. im currently back on my feet with a awesome new career and money to get my score back to the high 600's-low 700's and needed to know what should i do first? 

 

i have about $6,000 dollars i want to spend towards knocking credit card usage down. should i use us towards paying discover card down first? and just pay the rest min payments? should i pay off the lower credit cards and take care of the discover later? just to max my results 

 

im currently in the mid 500s.

 

i have 8 credit cards 

Amex: CL:$500 usage: $450  90% MAXED OUT $5.50 needed to get to 88.9%

Discover: CL: $11,100 usage: $10,900  99% MAXED OUT $1,121 needed to get to 88.9%

Capital One: CL: $3500 usage:$ 3,200  91% MAXED OUT $88.50 needed to get to 88.9%

Credit One: CL:2100 usage: $1950  92% MAXED OUT $83.10 needed to get to 88.9%

Murcury Card: CL:2500 usage: $2450  98% MAXED OUT $227.50 needed to get to 88.9%

Nebraska Funiture Mart: CL: $4,000 usage:$2400 60% usage

Synchony bank: CL: 4,200 usage:$ 2850. 67.8%

Wells Fargo: CL $3,000 usage: $0 (Just paid off )


You have 5 accounts that are considered maxed out (anything above 88.9% is maxed). I would get these accounts below 88.9% before doing anything else, so you avoid any possible adverse action. That’s a total of approx $1,525.60 to get all these down below the 88.9% threshold. Personally, I would pay off Amex, Mercury, and Credit One. That’s $4,850, then the $1,121 to get Discover down to 88.9%= $5,971. Another $88.50 to get Cap 1 below the threshold, and then you’ll only have two cards to pay down. GL!

Message 4 of 7
Anonymous
Not applicable

Re: Rebuilding Credit need advice on how to pay down CCs

I agree with the above poster. Start with Amex and Credit One. Then move to paying another lower balance cards. Keep paying until you pay off all of them.
Also plan it. If let’s say you spend all your cash and let’s say next month unexpected happens you will go right into putting balance. Plan ahead is my advice
Message 5 of 7
Sureshot
Member

Re: Rebuilding Credit need advice on how to pay down CCs

thank you for your input. its much apperciated. so you wouldnt pay nothing but the min towards discover? 


@CreditInspired wrote:

Hi and welcome to MyFICO

 

If it were me, I would pay off AmX ($450), Credit One ($1950), and Mercury ($2450). Not only will this help your score by lowering your maxed out UT, it also increases the number of cards with $0 balances. 

 

Then, I would put the remaining $1,150 on Cap1. 

 

Glad to hear things are looking up and GL2U. 


 

Message 6 of 7
Sureshot
Member

Re: Rebuilding Credit need advice on how to pay down CCs

thank you for the detailed breakdown. on what to do. this helps me alot. 

Message 7 of 7
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