cancel
Showing results for 
Search instead for 
Did you mean: 

What to Payy Down with $2500

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Established Contributor

Re: What to Payy Down with $2500


@BrutalBodyShots wrote:

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. 


Yeah, I saw that... but until they pay off all their current debt, they shouldn't really be seeking more credit anyway. So the best is to pay off highest APR first so they can pay off everything in the shortest time possible, then they'll have a much higher score and can start looking at new credit options with a clean slate.

American Express Blue Cash Everyday - $11,000; American Express Platinum Cashback Everyday - £3,000; American Express Rewards Credit Card - £7,500; Aqua Reward Mastercard - £3,500; Bank of America Travel Rewards - $5,000; Barclaycard Freedom Rewards - £3,500; Citi Forward - $5,800; Discover It - $10,000; Halifax Clarity - £1,500; HSBC Platinum with Rewards - $5,000, MBNA Everyday Plus - £3,500
Message 11 of 16
Super Contributor

Re: What to Payy Down with $2500


@nyancat wrote:



Yeah, I saw that... but until they pay off all their current debt, they shouldn't really be seeking more credit anyway. So the best is to pay off highest APR first so they can pay off everything in the shortest time possible, then they'll have a much higher score and can start looking at new credit options with a clean slate.


I agree with that 100%, but unfortunately the viewpoint that you and I both possess on this may not be the same as everyone, most important the OP. 

Message 12 of 16
Established Member

Re: What to Payy Down with $2500

Yes, of course my ultimate goal is to pay down all of my current debt. I am not seeking more credit in order to spend (obviously, I've already had enough of that.)

 

I am seeking a balance transfer card in order to cut down on the cost I would be paying in interest, hence the reason I asked about what would give me the score bump the fastest (in hopes of qualifying for a BT card sooner rather than later to alleviate at least some of the costs.) 

 

Thank you for the suggestions thus far! I am going through APR rates on all of my credit cards as we speak!

MY WALLET: Discover - $2500 | Victoria's Secret Angel Forever - $6000 | Express Next A-List - $3400 | CareCredit - $12000 | Chase Freedom - $3500 | Chase Freedom Unlimited - $1500 | Amazon Store Card - $5000 | Target RedCard MasterCard - $3500 | Paypal Credit (BML) - $3500 | Barclaycard Arrival + World Elite - $6500 | American Express Everyday - $10000 | American Express Premier Rewards Gold - NPSL | Citi Diamond Preferred - $3530
Message 13 of 16
Established Contributor

Re: What to Payy Down with $2500


@kristin93 wrote:

Yes, of course my ultimate goal is to pay down all of my current debt. I am not seeking more credit in order to spend (obviously, I've already had enough of that.)

 

I am seeking a balance transfer card in order to cut down on the cost I would be paying in interest, hence the reason I asked about what would give me the score bump the fastest (in hopes of qualifying for a BT card sooner rather than later to alleviate at least some of the costs.) 

 

Thank you for the suggestions thus far! I am going through APR rates on all of my credit cards as we speak!


Okay, definitely fair. Focus on APR, but if you have a high APR small balance, cut that down too. Two things are considered - % utilisation and numbers of cards with a balance. Both should be as low as possible. So, if you have, say, two 25% APR cards, and can pay off the small balance one, do it. If you have a 12% and a 25%, always pay off the 25%. In your case, the iffy thing is if they're close. Is it better to pay off a small balance 23% in full than part of a 25%, so that you can benefit from a score bump? MAYYYBEEEE

American Express Blue Cash Everyday - $11,000; American Express Platinum Cashback Everyday - £3,000; American Express Rewards Credit Card - £7,500; Aqua Reward Mastercard - £3,500; Bank of America Travel Rewards - $5,000; Barclaycard Freedom Rewards - £3,500; Citi Forward - $5,800; Discover It - $10,000; Halifax Clarity - £1,500; HSBC Platinum with Rewards - $5,000, MBNA Everyday Plus - £3,500
Message 14 of 16
Established Contributor

Re: What to Payy Down with $2500

I'm in a similar situation, so I'm gonna tell you what I would do. You probably already have a number of BT cards already. Go to each of your accounts and see what offers you may have for a BT on your account. Barclays, Chase Freedom, Citi, and Discover send them to me often. Go through all your accounts and find all the offers you're eligible for. If you can get a soft pull CLI for any of them do so. You'll want to zero out a card before you BT to it, otherwise things can get tricky with the payment allocation. 

 

Since you only have $2500, let's say you pay off the Arrival + because you have an offer on it. I try to only use 40% of a card's limit for BT so as to not spook lenders. Now you have about $2600 you can use to BT. You can pay off your Freedom and Slate with that. Now if you have offers on your Freedom and Slate, you can BT from other cards to those and so forth and so on. 

 

This is known as a debt shuffle and it can help you avoid paying the regular interest on your account. You want all of your interest rates to be as close to zero as possible. You shouldn't make a habit of it, but this is the situation you're in and this will help you pay down the debt faster. 

 

Also I don't think your score is considered when you PC, correct me if I'm wrong, but I thought you just call up the lender and say you want to PC. Also if you PC, you won't get the introductory offers, so if there's a 0% interest rate and your current card is higher, your new card would have your old interest rate. 

 

Good luck


Starting Score: 515
Current Score: EQ08 711 EX08 731 TU08 735
Goal Score: 740+

Amex BCP $25k | Discover IT $15.7k | Cap 1 QS $10k | PSECU $10k | Citi DC $9300 | Citi DP $6800 | Barclay Ring $6500 | PayPal Extras MC $5045 | DCU $5000 | Chase Slate $5000 | Barclays AA $4100 | Chase Freedom $4000 | Union Plus $1000 | Target $500
Message 15 of 16
Established Contributor

Re: What to Payy Down with $2500

I would pay off Disco and ask for a cli after payment clears.  They usually have 0% balance transfer offers.

 

Also, pay off store cards that have high interest rates.

Message 16 of 16
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.