Which Credit Card Should I Pay First?

[Caesar89]

Hello,

Had so much success with reading these forums some years ago. After some deaths in my family and being laid off, had to use some credit cards. I'm back working and have a little cash saved, about $5k. I paid off two credit cards and have three remaining. Which credit card should I put the $5k into to increase my scores? These credit cards are all CLOSED. I appreciate the feedback.

American Express

Platinum

$3,651/No Limit.      No Util. Listed             Closed

Gold

$18,185/No Limit.    No Util. Listed.            Closed

Navy Federal CU

$21,137.64/21,100     101%.                              Closed

EDIT: I only have $5k to put towards these balances.

[unsungivy]

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@Caesar89 wrote:

Hello,

Had so much success with reading these forums some years ago. After some deaths in my family and being laid off, had to use some credit cards. I'm back working and have a little cash saved, about $5k. I paid off two credit cards and have three remaining. Which credit card should I put the $5k into to increase my scores? These credit cards are all CLOSED. I appreciate the feedback.

American Express

Platinum

$3,651/No Limit.      No Util. Listed             Closed

Gold

$18,185/No Limit.    No Util. Listed.            Closed

Navy Federal CU

$21,137.64/21,100     101%.                              Closed

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Well, they're all closed, so are you racking up any further interest? If so, how much on each? If that's not a factor, then I'd fully pay off the Platinum just to have one less to deal with, and 5k on the others would still leave them over 75% so really wouldn't change your scores etc.

[Caesar89]

@unsungivy On the two American Express cards, I don't see interest being charged. On the Navy Fed card, after talking to them, they dropped my interest rate down to 3%.

[GZG]

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@Caesar89 wrote:

Hello,

Had so much success with reading these forums some years ago. After some deaths in my family and being laid off, had to use some credit cards. I'm back working and have a little cash saved, about $5k. I paid off two credit cards and have three remaining. Which credit card should I put the $5k into to increase my scores? These credit cards are all CLOSED. I appreciate the feedback.

American Express

Platinum

$3,651/No Limit.      No Util. Listed             Closed

Gold

$18,185/No Limit.    No Util. Listed.            Closed

Navy Federal CU

$21,137.64/21,100     101%.                              Closed

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were you late on these accounts? are they charged off or just closed by the issuers? 

[JoeRockhead]

The credit limit is no longer factored on the Navy revolver so it will be counted as maxed out, and at 100% utilization until its paid to a zero balance.

[Caesar89]

@GZG  Both of the AmEx are charge offs but I'm still paying them monthly. I have been late on the AMEX with the $3k balance and the Navy Federal. 

[Caesar89]

@JoeRockhead  Wow, so it won't matter if I don't pay it off? No score increase if I pay under 80%?

[JoeRockhead]

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@Caesar89 wrote:

@JoeRockhead  Wow, so it won't matter if I don't pay it off? No score increase if I pay under 80%?

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No, like I said on closed, or charged off revolvers, the card's credit limit is whatever the remaining balance is so until it's paid to zero it will remain at 100+% utilization. 

This also affects your aggregate utilization being that card's credit limit is no longer factored in your TCL.

[Caesar89]

@JoeRockhead  So when it reports monthly, it has the credit limit and the balance producing a utilization, weird enough Navy Federal has the account closed when I log in but it does not show closed on my credit reports.  The utilization has dropped from 103% to 101%. 

[1lifeisworthit]

I'd get on a payment plan for the 2 large balance cards if I could.

I'd pay off the small balance card, and put the rest of the $5000 left over onto the card that is costing you interest.

After that, every single month, I'd make my committed payment plan payments, and I'd find extra on top of that commitment onto the card that has interest..

Once that one gets paid off, the final card gets its committed payment, the other (now paid off) card's committed payment, AND everything extra you can find. Every month. 

Such a strategy gives you several months of decent payment history after the negatives. Which is why a committed payment plan is helpful, as opposed to sending something every once in a while.

This is assuming a small emergency fund is in place, to protect my ability to stick with the payments.