I've got a situation that I need guidance on.
I have $2500.00 readily available to pay off a very small amount of my credit debt. I just need to know what strategy will work more in my favor, as I am searching for a good balance transfer card that I can PC to (I really do not want to open a whole new credit card) ASAP.
A bit about my profile:
Credit Score: 690ish
Overall CC Utilization: 29%
AAoA: 2 years, 9 months
Credit Inquiries: ~4 on each bureau
No baddies or derogs
Current Balances (every single card):
Amazon Prime Store Card: 0.00/5000
American Express Everyday: 8696.44/13500
American Express Premier Gold Rewards: 2119.49/NPSL
Barclaycard Arrival +: 2594.47/6500
Care Credit Medical Financing Card: 0.00/12000
Chase Freedom: 1515.02/2000
Chase Slate: 950.62/3000
Citi Diamond Preferred: 4500.00/10000
Discover Card: 796.00/2500
Express Next A-List Store Card: 108.03/3150
Target MasterCard: 274.08/2500 (the one and only statement that has already cut for the month)
Victoria's Secret Forever Angel Store Card: 155.09/6000
I'm assuming that after at least paying a few of these down with the small amount that I have, my score will see a slight bump and I will be more qualified to PC to a balance transfer card. So, my two big questions are:
1. What should I pay off/pay down first? I was thinking about just leaving the AMEX and CITI balances as is for the moment and pay off the smaller balances (Chase, Discover, Express, Victoria's Secret, etc.). I wanted to do this just because I feel like making any additional payment wont make a huge difference. Keep In mind that I'd like to PC one of my cards with any of these companies to a balance transfer card, so If i go with this plan, an AMEX or CITI balance transfer card is out of the window automatically.
2. After my modest payments, Which company is easiest to get a PC with? Although my scores aren't terrible, I have a super high UTIL on quite a few cards, which gets in the way of getting approved for anything.
Any insight on this helps! Thank you guys in advance.
Pay off 4 small balances and you should get a bump at least on my data; I have a line at 50% of revolvers w/balance being a ding on my file at any rate on all 3 bureaus. Actually as near as I can tell on my dirty file being under that is optimal for both EX/TU FICO 8, EQ is the odd duck for me having a second line at 33%, but either way you're at 9/11 now -> 5/11 should be a step in the right direction.
Beyond that it's hard to say; recent testing suggests there's different breakpoints for individual tradeline utilization between the bureaus and I am SUPREMELY irritated by that =/. Never thought trying to nail that down would be challenging but this is suddenly going to be a long term project.
Someone else would need to answer the BT target bit, but if I had a 690ish credit score and income I'd be looking at a consolidation loan personally.
I agree with the post above that says to tackle the small limit/balance cards first, getting several of those paid down to $0 could help your scores the most at this point.
Aggregate utilization will be the same regardless, so putting the $2500 toward something like your Amex account with the highest balance would likely result in zero score improvement. Bringing multiple accounts down to a zero balance though in terms of individual trade lines and number of cards with balances can certainly result in some more points, so that's the route I would go down if I were you.
OP is still going to have to pay off the Amex PRG NPSL as that is due in full each month unless they have and are using POT feature.. So really limits the options currently
To clarify, I do have the POT feauture on my AMEX.
You don't provide enough information. Paying off the smallest balances is not necessarily financially wise, unless they're your highest interest. Pay off the most expensive debt first - that with the highest APR (or annual fees so you can cancel it).
It depends on the goal of the OP. If it's to lower interest paid, obviously paying down the highest interest cards first is most important. The OP however suggested (at least I took it) that they were looking for a score increase, which would mean paying down some small balances to 0, regardless of the differing interest rates.
Ooops wrong thread! - Mod please del?