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Credit card maxed out help...

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Senior Contributor

Re: Credit card maxed out help...

Just to add you have more then 50% of your cards reporting. I think I counted 24 out of 29 revolvers reporting. Another hit. There's more to it like the others have said thats dinging you. Get below half the cards reporting also could help. Dont know how you do it. My 8 cards are a PITA as it is. Good Luck!





My posts are JMHO. I DO NOT claim to be a FICO expert. Just sharing my experiences from rebuild to recovery after BK DC.
Message 11 of 20
Valued Contributor

Re: Credit card maxed out help...

Also agreed with all of the above - zero out as many as possible after getting all below 48.9% (shoot for 47% so that it stays under the threshold after interest is added). That will be your best bet, and then sock drawer all but a few cards, paid off or not, and let them sit at zero or continue paying them to zero. Let them benefit you, not harm your scores.


Rose Gold/BCP/Delta Gold/Hilton Ascend/Hilton Honors | IT | Quicksilver | Target | VS | Home Depot | Lowes | Firestone | Wayfair | Kohl’s

Heir apparent to the SJ Special (finally got a Disco CLI of $300)

5/24, 1/24, 76445/24, who cares #ratherhaveAmex





Entering the garden 5/27/2019, staying until 2020
Message 12 of 20
Super Contributor

Re: Credit card maxed out help...


@californiadreaming87 wrote:

I have a 717 with experian.


We still need to know the scoring model used to generate that score.  Unless it's a mortgage score, it isn't relevant for your upcoming mortgage app.  If it's (say) an EX Fico 8 score, while a very common and worthwhile score, it's irrelevant to your current goal. 

Message 13 of 20
Established Member

Re: Credit card maxed out help...

"if not, you should. What happens if you wind-up hospitalized and unconscious?"

 

I personally never did auto pay but your simple explanation just convinced me!

Message 14 of 20
Established Member

Re: Credit card maxed out help...

Like the others said, you are at 21% total which technically isn't bad, but what possible reason could one have to have all this debt spread out like this.  If you paid it all off tomorrow, but kept about 15k on one of the high limit cards, you wouldn't see a FICO decrease.  There is just no value to this and all it does it ensure more room for mistakes.  When I speak to people who do this the root cause is that with more cards at low balances it psychologically makes them feel like they don't have much debt.  

Message 15 of 20
Valued Member

Re: Credit card maxed out help...

@CaliforniaDreaming87, Hello, I have posted with what seems to be just a bit more debt than you have, I did not caculate all of yours just glanced at the numbers, also I am no finacial expert and not looking to take on a mortgage anytime soon until I finish my current obligations, but it seems kinda like we are the same boat or have a similar mindset I too have never missed a payment with any of my creditors or any bill at that point ever, and as you say you are grossing at least 100k, I do not think my gross is that far yet but I keep on steadliy increasing it but hard to tell since I have not been at my job long enough to see a full years tax return, but I know in the last 4 months I have grossed almost 27k, my job can sometimes be inconsistent gross 2300 one week then only 1300 the next, but I have lots of side hustles making up the difference, and very low living expenses, again maybe not like you if you already have money invested in business, but I too am like you its an infactuation, kinda like a game to me paying off my debt, not that this is a fun game just another challenge like a video game that I have to beat.

 

I have learned a lot in the past few months from lots of options I have and programs and BK, also don't know your current living situation or expenses, I was on the brink of BK for sure if I hadn't cut my expenses and finally landed a job that I am making good enough money to pay back my debt.

 

Also like another poster said I am on a thin piece of ice if something were to happen to me that I could not work, I would be done for sure, but I am putting my odds with me being in my late 20's on paying this off at worse in a few yrs and it not taking too much of a toll on me as I still have plenty of energy and stamina. Again do not know your age or living situation.

 

I have a pretty good plan and have started with the snowball method already paying off lots of my smaller balance cards, getting rid of that interest and payments for good even though some of the aprs were a little less than my higher balance accounts, while still staying motivated crossing off each card I pay off.

 

It sounds like you are pretty well off, if even considering a mortgage at this point with that debt while I am in a studio on an air mattress, but anyways I talked to debt relief companies and after doing more due dilligence thats not an option as customer service was nice and almost sold me on an unattainable dream of my credit will barley be harmed and only making a small payment I would be out of this in no time, I realized this would be a worse option than BK very real possiblity of being sued especially with my amount of debt/sheriffs showing up at my residence or job and calls to anyone they can research associated with me as well as endless calls and letters and tacked on interest and late fees, Then from BK attorney's I was told I am making too much for a chap 7 and a 13 I would still pay back a big portion of my debt, possibly through wage garnishment with my credit being destroyed still, Now to DMP's sounds like a decent option if all else fails, as they will negotiate with my creditors a lower interest rate and payment with no longer than a 5 yr plan but it would still be on me to call all my creditors to get my payment dates moved to about the same date so my payment to them would disperse and cover all my accounts at the same time, and negatively I would have all my accounts listed in the plan closed out as well as being told Amex will stay say the account was settled instead of paid as agreed.

 

Anyways where I am at now, is I have managed to pay down about 10k putting my debt at a little over 100k now, good start for me, and the general consensus from a BK attorney and a couple of Credit counseling services have been just be paient and pay this off with the type of money I am making and take it as a hard learned learning experience, and ask why am I talking to them, as most of these programs are designed for people that are already deliquent and can't keep up with their payments anymore or no a finacial hardship is coming, where interest and late fee's have already accumalated making it impossible for them to come back off whatever their sarlary is.

 

So what I have started doing is calling all my creditors directly and I let them know my situation, and told them I have all intention on paying this debt off but I just need a little help starting with getting all my payments consolidated into the first week of every month, so as someone else posted it's easier to keep up with so many to not miss one on accident and to just put almost 1 payment in a week out.

 

Next I have called and been pretty straight to the point and said I want to pay this off but at the end of the day with me just making min payments I will be doing this for the next 30yrs which I politely explained I am not gonna do, it would make no logical sense in me wasting more yrs than I have been alive to paying this off, which they all almost have agreed and immediately gave me very good options by lowering my interest significantly while some I could keep my accounts open while others would be closed but with no impact besides my credit utilization going down.

 

I stayed to the point of telling them I have been a great customer and never missed a payment but not directly telling them how much I am really making as it is a very real possiblity that I could just continue paying this off just the way it sits with all my current interest rates still in about 3 years, after adding all my payments that my statements say If I were to make this payment I would have paid off in 3 yrs, but did not want to inform them of this because I know they are a business and at the end of the day I am making them lots of money and I am sure they could care less about my living situation as long as I have just enough to make my payments.

 

Lastly from all my research and talking to people a Consolidation loan is what would be the best option for me as what lots of these companies as well told me, as if I could get a loan at say a 10percent apr I could have this knocked out in a little over 2yrs. Right now its just hard because my credit limits have been cut by so much and my utilization is up so high even though I would be the perfect customer, never a missed payment, but just getting a lower interest would speed this up so much more without any hit of closing any accounts out. Most of my creditors tell me how much they value me lol (I bet with the interest I have paid) and I know these companies want to keep my business and will drop a lot of things also they said they could defer payments as well, before they want to hear of a BK which I was never considering lol

 

So as of now I have not excepted any of their offers just yet as I am still getting all my steps together first by conslodating all into the same week payment, while still paying down greatly then I want to continue to research on any consolidation offers.

 

Not sure if this is anything that helps just letting you know I am in a tough but very managebale situation, and just keep taking it day by day, and making progress, but again you sound like you may be in a very different ball park getting a mortgage, also I am not expert but I don't think those 2 cards with those small balances would affect much even if the utilization is high, its more about the bigger picture, and it looks like you have tons of credit available and used I doubt they would be looking at those small balances but the bigger pic of total utilization and debt to income ratios.

 

If there is something I may have mentioned and or this more your type of situation please message me, I am learning everyday as well.

 

Thanks and have a Great Day.

 

 

 

Message 16 of 20
Community Leader
Super Contributor

Re: Credit card maxed out help...


@bdub1234 wrote:

@CaliforniaDreaming87 or anyone else Post Script, I again would appreciate any advice on getting a consolidation loan, if anyone knows a good reputable company, I keep getting offers but I have not tried to apply for awhile since before I had offers then go to apply and get shot down, reasons being credit utilization too high, and or debt to income ratio.

 

Would be greatly appreciated if anyone had any ideas on a lender, I really only need/want to consolidate my Cap 1 and Citibank cards totaling about 23k but with 26-27 interest, those are the ones killing me, have offers from them but with potential closing of accounts which Cap 1 is my oldest 10yrs but will do and if I go ahead and take their offers which are the 2 that aren't super great, especially compared to some of my cards that are only 12-17percent but willing to drop to 6percent or less, just want to utilize my options first and see if there is something better..

 

Thank you again


 

If you're looking for a personal loan, fell free to post your question in Personal Finance board https://ficoforums.myfico.com/t5/Personal-Finance/bd-p/Retirement

 

Lets leave this thread for OP and her questions, otherwise it gets very confusing for everyone involved. 

EX 753 EQ 769 TU 755
Message 17 of 20
Valued Member

Re: Credit card maxed out help...

@Sarge12,  Yes that is how I feel all only use plastic ware now, lol, no sharp objects, seriously OP is in a realistic situation, if you have read my post I am seriously putting a hurt on my debt about 10k in 4 months at my rate I could be debt free in 40 plus months but I continue to increase my income, and hopefully can get a consolidation loan while most of my creditors have given me already great offers.

 

Plus, I am doing just that knocking off all my smaller ones that I can and putting the rest on or about the same payment date, its hard work but not impossible, I also have/had many accounts like this I was juggling without missing a payment I just been knocking them off at least the small ones eliminating the interest and any payment 1 by 1.

 

If Op is making over 100k a year then it should not be a problem plus it looks like he owns 2 bmw's could possibly sell and put a lot of cash towards higher payments interest while taking a hit on deperciation of the vehicles and has money invested in businesses.

 

Does not seem far fetched, depending on living expenses and other obligations such as children/spouse/medical....etc don't know.

Message 18 of 20
Valued Member

Re: Credit card maxed out help...

@Remedios, Sorry I am still kinda new here I will post where appropriate, was not trying to confuse anyone, Apologizes to OP

Message 19 of 20
Contributor

Re: Credit card maxed out help...


@FicoFighter17 wrote:

Like the others said, you are at 21% total which technically isn't bad, but what possible reason could one have to have all this debt spread out like this.  If you paid it all off tomorrow, but kept about 15k on one of the high limit cards, you wouldn't see a FICO decrease.  There is just no value to this and all it does it ensure more room for mistakes.  When I speak to people who do this the root cause is that with more cards at low balances it psychologically makes them feel like they don't have much debt.  


Wow, this hit home with me because this was literally me many years ago. I juggled a ton of cards that I thought I had under control because the debt was spread. This was just a false flag and I screwed myself in the end. In my effort to rebuild, I hit a homerun with my Discover Balance Transfer card on the SL (was literally shocked when approved), put all my remaining debt there and that is the only thing I let report. I will have everything paid off well before the promo period ends. By that time my last 2 reporting charge offs will fall off and I'll be "clean" for the first time in almost 10 years.

8/1/2018 FICO Scores:

7/12/2019 FICO Scores:
Message 20 of 20