Which would you pay first?

[ccpat]

I have $600 to put toward a bill. My overall Uriel is 18% but on a Cap One card I have a $630 balance with a $700 limit. Almost 100% util but the interest rate is only 10.5% (old HSBC). I also have a VS that has a $900 balance with a credit limit of $2650. Interest rate is 24.9%. Do I pay to reduce until or pay down balance with higher interest?

[Anonymous]

Maybe 150 to Cap1 and 450 to the VS.

[UncleB]

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@ccpat wrote:

I have $600 to put toward a bill. My overall Uriel is 18% but on a Cap One card I have a $630 balance with a $700 limit. Almost 100% util but the interest rate is only 10.5% (old HSBC). I also have a VS that has a $900 balance with a credit limit of $2650. Interest rate is 24.9%. Do I pay to reduce until or pay down balance with higher interest?

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That's a tough one... if by VS you mean Victoria's Secret, keep in mind that any payment you make to that card can only be used later on store purchases, while if you make a significant payment to your Capital One card if you find yourself in a 'pinch' you can use that card elsewhere. 

If you're financially comfortable (have a plan for emergencies) I would put more toward the Victoria's Secret.  If you don't have another general-use card or savings, I would consider putting a larger amount on the Capital One and simply continuing to work on the Victoria Secret card as you already are.

By putting more toward the Capital One card you might end up paying a little more in interest, but if it's your only general-use card the peace-of-mind would be worth it to me. 

Just my 2¢. 

[Anonymous]

It's a toss up, credit score vs a few bucks.

Another thing to keep in mind is where would you rather put your best foot forward?  Lenders like big payments and Cap One offers more options for growth down the road.

[Anonymous]

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@Anonymous wrote:

It's a toss up, credit score vs a few bucks.

Another thing to keep in mind is where would you rather put your best foot forward?  Cap One offers more options for growth down the road.

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Well, yes, but I wouldn't view it as a toss up, it depends on the OPs immediate needs.     If you need your credit score as high as possible very soon, then put all the extra on the Cap One.    But if you don't, it makes more financial sense to put all the extra on the higher APR card, to reduce interest paid.

[CountryLivin]

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@Anonymous wrote:

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@Anonymous wrote:

It's a toss up, credit score vs a few bucks.

Another thing to keep in mind is where would you rather put your best foot forward?  Cap One offers more options for growth down the road.

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Well, yes, but I wouldn't view it as a toss up, it depends on the OPs immediate needs.     If you need your credit score as high as possible very soon, then put all the extra on the Cap One.    But if you don't, it makes more financial sense to put all the extra on the higher APR card, to reduce interest paid.

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+1

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

It's a toss up, credit score vs a few bucks.

Another thing to keep in mind is where would you rather put your best foot forward?  Cap One offers more options for growth down the road.

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Well, yes, but I wouldn't view it as a toss up, it depends on the OPs immediate needs.     If you need your credit score as high as possible very soon, then put all the extra on the Cap One.    But if you don't, it makes more financial sense to put all the extra on the higher APR card, to reduce interest paid.

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Exactly, a tossup. Saving money vs long term goals. If the Cap one is nearly maxed out and he throws a small payment at it, they will remember.

[ccpat]

Thanks all for the input.  I have other majors (Chase, FNBO, Discover) so the Cap One is not my only emergency card.  I do like the thought of the credit score increase (I'm at 670 (ish) so I think the consensus for that would be to pay the Cap One.  It would probably be about 2 more months before I can pay on the VS card at a larger level.  

[SouthJamaica]

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@ccpat wrote:

I have $600 to put toward a bill. My overall Uriel is 18% but on a Cap One card I have a $630 balance with a $700 limit. Almost 100% util but the interest rate is only 10.5% (old HSBC). I also have a VS that has a $900 balance with a credit limit of $2650. Interest rate is 24.9%. Do I pay to reduce until or pay down balance with higher interest?

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I would pay 450 to Cap One and 150 to the other, thus bringing util on both below 30%

[ccpat]

I do like the thought of the split.   Capital One is faster to report to credit than Vic Secret.