@Crisis wrote:This is a random idea I had earlier and I wanted to get some feedback.
I am in the garden until I am ready to app for a car, which I hope to be June, and as such, I don't want to get a card specifically for a BT, but I was wondering about BT my current balances to my newest card. It'd put it at pretty high utility, but the interest rate is significantly lower than my other cards. I know there'd be a BT fee, but I still feel like this might be the way to go.
Thoughts?
Only you can decide this, based on the 3%, thats $3.00 per hundred swapped, or $30.00 per $1,000.00.. If moving it is going to save you more then this amount in the payoff time on interest, It is a possibility...will this leave you with only 1 card showing a balance? If so, How high UTI? if its less then 50% , then I would say the ding would be less for this, but it also gives time for the other cards to report 0 balances...
This is an intriguing Idea... I am sure it has been done in the past. I moved several balances around last year, and got into a pretty good position by putting all on 2 cards, even though it "maxxed" those 2 cards. It saved me over $100.00 a month in interest, and the cost to transfer everything was less then $100.00. My score also went up 45 points because i then had 6 cards reporting 0 and 2 with a balance, even though those were over 80%... tricky part was: there was a 3 week window between the cards that reported 0 and the ones i transferred to reporting the balance, which dropped my score back down LOWER then it was to begin with by 20 points... so I gained 50 points for 3 weeks, then lost 70 points... YMMV
The hard part is, which method are you going to go for the auto loan, prequal yourself or shotgun your report ... I have never done the prequal, although next time that will be my method.
Last shotgun I did cost me 8 inquiries... and the one before that 11 inquiries...
OFFICIAL GARDEN START DATE: 10-05-2014... TARGET GARDEN END DATE: 06-01-2016 Lets Git 'r' dun
@sterl1002 wrote:Hey Folks!
So I'm here to "bare it all" and join the challenge! Starting Jan. (shortly after I discovered myFICO
) I embarked on a mission to pay off all of my CC debt, which should occur by October (fingrers crossed!). When I started I was at 77% util with $12k in CC debt, so far I'm down to around $8,800 and 47% util (apped and approved for the BCP wich added $2k of available credit, and got a CLI on my JCP card increasing it to $1,500 bringing total available credit to $18,900). Currently standing at a myFICO EQ score of 704 (the AMEX BCP has reported, so I took a hit for that, but the PRG hasnt yet). Below is where I currently stand. I'm taking the snowball method toward payoff, so lowest card first.
Issuer Debt Credit Limit % Int. 1FBUSA $ 3,729 $ 3,800 29.99% Citi AAdvantage $ 2,400 $ 2,500 15.24% GECRB/Belfort $ 1,000 $ 1,500 0 (Oct '14) Chase "Freedom" $ - $ 2,000 21.14% Amex BCP $ 817 $ 2,000 0 (June '15) Amex PRG $ 35 NPSL PIF Amazon Store $ 86 $ 700 19.99% BofA $ - $ 4,000 ?? (AU) AA Store Card $ - $ 500 19.99% GECRB/JC Penny $ 317 $ 1,500 21.24% CU Line of Credit $ 900 $ 1,000 18.24%
So fair I've paid off the Macys which had $860 and the Chase which was maxed at $2k. Chase reported early, so the 706 score takes that into account. I've already seen pretty dramatic results, with my score jumping from the 620's when I started to 706 now, all through util and getting 2 30 day lates (the only baddies on my report) removed.
The BCP and PRG balance contains budgeted monthly expenses (food, utilities, etc.), which I PIF every 15th.
After clearing out Amazon and JCP (recent purchases) I'm trying to decide who's my next repayment target.
Look forward to sharing some updates with you all and keeping up with this thread!
Welcome to the payoff challenge!!..
I agree with the "highest interest first" to save money.. but if you need to see 0 balances, then definetely go your route... the important thing is, that you steady pay it down, and don't continue to add to it..
I look forward to hearing of progress!!!
Pup
@TrulyyBlessed wrote:CURRENT CC PROFILE:
- I moved my NFCU balance to a Chase & Discover Card with a 0% APR Promo to save on interest fees. I also moved the limit from my lower limit NFCU ($1500) card and combined it with my higher limit card ($12,500) so that I have fewer cards to manage (1 card 14K limit). Currently I'm working on paying down the debts. I always pay my Amex in full each month, and only have a balance reporting on the promo cards. Question: For the maximum score increase would it be best to bring utilization below 30% on 1 card at a time or to bring it below that mark on all 3 cards around the same time frame? Any suggestions would be appreciated.
Credit Card Limit Current Balance Available Credit Utilization Due Date APR NFCU Cash Rewards $ 14,000.00 $ - $ 14,000.00 0% 22nd 14.65 American Express $ 7,700.00 $ 569.36 $ 7,130.64 7% 19th 17.24 USAA Mastercard $ 7,000.00 $ - $ 7,000.00 0% 23rd 15.9 Discover It $ 6,500.00 $ 2,296.28 $ 4,203.72 35% 8th 0% until 04/2015 than 17.99 Wells Fargo (Ashley Card) $ 4,500.00 $ 1,688.92 $ 2,811.08 38% 4th 0% until 02/2015 than 22.99 Chase Freedom $ 3,500.00 $ 1,250.93 $ 2,249.07 36% 7th 0% until 05/2015 than 22.99 USAA Secured Card $ 2,500.00 $ - $ 2,500.00 0% 14th 17.99 Walmart Store Card $ 1,600.00 $ - $ 1,600.00 0% 12th 22.99 BOA Secured Card $ 1,500.00 $ - $ 1,500.00 0% 12th 17.99 TOTAL $ 48,800.00 $ 5,805.49 $ 42,994.51 12%
Welcome Truly
I am glad you are sharing your information. You are not in terrible shape by any means, and that is good to see. Your drive to pay it off is applauded!!
Keep us posted on how you do, and let us know if there is any support we can offer!!
Pup
@mt2va wrote:I just paid off 3 credit cards this month & have 2 to go with NFCU (they closed them in 2012 due to a couple late payments). Then I will never carry a balance again. It's a great feeling.
This sounds wonderful.!!.. The tricky part is you may need to carry a balance. Never say never, just do everything in your power to not overspend to where you HAVE to..
Great job on paying off the 3 you took care of this month!.. That is awesome!!..
Keep us posted on the updates with NFCU. and GL with your progress!
Pup
@Pupeitmeister wrote:
@Crisis wrote:This is a random idea I had earlier and I wanted to get some feedback.
I am in the garden until I am ready to app for a car, which I hope to be June, and as such, I don't want to get a card specifically for a BT, but I was wondering about BT my current balances to my newest card. It'd put it at pretty high utility, but the interest rate is significantly lower than my other cards. I know there'd be a BT fee, but I still feel like this might be the way to go.
Thoughts?
Only you can decide this, based on the 3%, thats $3.00 per hundred swapped, or $30.00 per $1,000.00.. If moving it is going to save you more then this amount in the payoff time on interest, It is a possibility...will this leave you with only 1 card showing a balance? If so, How high UTI? if its less then 50% , then I would say the ding would be less for this, but it also gives time for the other cards to report 0 balances...
This is an intriguing Idea... I am sure it has been done in the past. I moved several balances around last year, and got into a pretty good position by putting all on 2 cards, even though it "maxxed" those 2 cards. It saved me over $100.00 a month in interest, and the cost to transfer everything was less then $100.00. My score also went up 45 points because i then had 6 cards reporting 0 and 2 with a balance, even though those were over 80%... tricky part was: there was a 3 week window between the cards that reported 0 and the ones i transferred to reporting the balance, which dropped my score back down LOWER then it was to begin with by 20 points... so I gained 50 points for 3 weeks, then lost 70 points... YMMV
The hard part is, which method are you going to go for the auto loan, prequal yourself or shotgun your report ... I have never done the prequal, although next time that will be my method.
Last shotgun I did cost me 8 inquiries... and the one before that 11 inquiries...
By the time I purchase, cards will be paid off. I'm not waiting for that, but it's the way the stars have aligned, so to speak. (Starting a new ft job next week and, though I've been in the industry for a good long time, my salary will have nearly doubled in the last year, so I'd like to reflect that, and I'm still learning to drive. By the time I'm comfortable driving...)
I'm not sure what you mean by shotgun it. I have never bought a car before (would have been silly if I couldn't drive it!) and I've not had any other kinds of credit besides cards, so I'm a little leary of the car negotiation/loan process, or at least a little intimidated by it. What I had in my head (and please correct me if there's a better way) was I'd apply for membership with (another) credit union, then do prequals through that credit union as well as the one I joined through work last year, my local bank, and whichever manufacturer I decide to explore (currently looking at Nissans, but not settled yet), then go from there.
Like I said, not sure and very open to suggestions.
I get paid this week and I'm paying down another chunk. I decided against BT because I'm pretty sure I will be paying off 2 of my now 3 active cards (closed FP last week ) by the middle of April, leaving the one I would BT to. If I were going to be longer than that, it would be different, but I won't be making multiple payments much longer anyway, so I decided it would be moot.
In the garden until debt is paid off and scores are up!
@ crisis. Sounds like a plan get comfy driving first
As to a car purchase. Do you want new or preowned? Have you done any research on lease vs buy?
Shotgunning an app is when you walk into a dealership and they send a request for a loan through several banks/credit unions. Be cautious of this approach.
I do not know how prequals affect things. I recommend asking in car loan forum for added info
Keep in mind that forum moves a bit slower than cc forum, but there is a pretty good amount of info to be found
As to a car purchase. Do you want new or preowned? Have you done any research on lease vs buy?
Shotgunning an app is when you walk into a dealership and they send a request for a loan through several banks/credit unions. Be cautious of this approach.
I do not know how prequals affect things. I recommend asking in car loan forum for added info
Keep in mind that forum moves a bit slower than cc forum, but there is a pretty good amount of info to be found
@Crisis wrote:FINALLY closed my FP account. It feels amazing!!!
I called and eventually got transferred to the right department.
The guy who took my call was annoying. He asked my reasons, I told him. He tried to talk me out of it. I was firm. He said "the people at myfico.com, who are credit experts..."
Annual Fee+ Monthly fee + exorbitant APR. No.
"The APR is not what you're charged monthly"...
really??? the ANNUAL percentage rate is not charged monthly? wow... I never would have guessed!
Thank you, FP. You taught me not to believe that everyone genuinely wants to help me, and for the low $49 annual fee + $14.95 monthly + a $75 activation fee + 3% monthly interest.
I'd like to thank the people of this thread, without whom I would still have that stupid card
@WTG @ Crisis! Your post made me LOL at my desk...I am supposed to be working, not wandering around the myFico forums. Keep up the good work!
012019 Fico8/Mortgage Score: 
@Pupeitmeister wrote:
@ crisis. Sounds like a plan get comfy driving first
As to a car purchase. Do you want new or preowned? Have you done any research on lease vs buy?
Shotgunning an app is when you walk into a dealership and they send a request for a loan through several banks/credit unions. Be cautious of this approach.
I do not know how prequals affect things. I recommend asking in car loan forum for added info
Keep in mind that forum moves a bit slower than cc forum, but there is a pretty good amount of info to be found
Hey Pup,
I am exploring new and certified pre-owned. I have decided pretty solidly against leasing. I don't think Shotgunning is something I'd do. I don't want to rack up inqs of that magnitude. I'm kinda a control freak like that I guess, or just (shot)gunshy. IKR? Gunshy in texas.
I have poked into the car loan forum and done some reading. Still lots more to do. Really intimidated by the first "major" decision I've made.
@Crisis wrote:
@Pupeitmeister wrote:
@ crisis. Sounds like a plan get comfy driving first
As to a car purchase. Do you want new or preowned? Have you done any research on lease vs buy?
Shotgunning an app is when you walk into a dealership and they send a request for a loan through several banks/credit unions. Be cautious of this approach.
I do not know how prequals affect things. I recommend asking in car loan forum for added info
Keep in mind that forum moves a bit slower than cc forum, but there is a pretty good amount of info to be foundHey Pup,
I am exploring new and certified pre-owned. I have decided pretty solidly against leasing. I don't think Shotgunning is something I'd do. I don't want to rack up inqs of that magnitude. I'm kinda a control freak like that I guess, or just (shot)gunshy. IKR? Gunshy in texas.
I have poked into the car loan forum and done some reading. Still lots more to do. Really intimidated by the first "major" decision I've made.
I recommend as a first car, to find something that has good safety ratings, perhaps a pickup truck if you feel you will do a lot of hauling (tools, lumber, etc etc... ).. Groceries do not fit in a pickup well, you can do it, its just not as good as a trunk.
You definetely want to find something that is comfortable for you, with minimal blind spots. Do not be afraid to test drive EVERYTHING!!.. When I was shopping for my first car, I test drove a jeep, and I couldn't even figure out the manual transmission. I found out later that it had a backwards linkage, something about it used to be a european car, that had been brought to the states. The shifting was from Right to Left, instead of Left to right... /shrug.. LOL.
Anyway... they recommend a 2 year old car for the greatest save on depreciation. I have found in the current economy, I can pick up a new car, at a decent rate, (less then 5%, ) for approx $50.00 more per month then a 2 year old car (in the 35k purchase price range)..
As to your search, I wish you luck. As to the financing, I would definetely recommend a CU that you have done business with in the past, and see what you can get Prequal for before shopping. Ask if they can do an AR (Account Review) for the prequal, since you do not want to take a HP for it. Some lenders will be willing to do that for existing customers, and go over what may need to change for you to get top tier financing. YMMV.
@Crisis wrote:Challenge Accepted.
Chase 1250/1300 at 29.99% APR
Cap1 453/500 at 22.9% APR
First Premier 685/700 at 36.0% APR
Barclay 361/3300 at 13.74% APR
I'm making payments in the next couple of days, and after I off FP, I'm gonna close the account. Really curious what the payoff will do to my credit scores, which aren't too bad before.
Definitely starting with FP and Chase. I'd never paid attention to the Interest before. Shooting for >10% Util by June.
After today's payments post
Chase 445/1300 (next paycheck this should be paid off!)
Cap1 (now a QS!) 299/500 (req CLI denied because the account was "recently past due" -- (In 2010...-- I intend to recon tomorrow). Eq shows as 704 on the denial) (next paycheck I'm intending to pay this off, too).
First Premier CLOSED
Barclay WS-- this is my current go to card. 1108/3300
for a total of 1852/5100 or 36.3%
Other notes: New Job. THRILLED. 20%+ raise. Awesome!