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Have money to pay CC's but need help determining which ones

ABCD2199
Senior Contributor

Re: Have money to pay CC's but need help determining which ones

Great job!

 

In addition to what Mr. Thumb said about, it is also very important to track how interest accrues on each account and when new interest actually reports.

 

For example: let's say you have an accord with a $10,000 CL and an $8000 balance.  You want to pay it down to under 50% so you aim for 48.9% balance or $4890 after a payoff.  But if interest accrues and is posted on the statement cut date, your new interest of $120 may get posted on top of your new fresh $4890 balance and you'll end up reporting $5010 which is over 50%.  Oops!

 

So definitely post your new balances and if they included new interest or not.

Message 21 of 30
Barneygirl
Frequent Contributor

Re: Have money to pay CC's but need help determining which ones


@ABCD2199 wrote:

Great job!

 

In addition to what Mr. Thumb said about, it is also very important to track how interest accrues on each account and when new interest actually reports.

 

For example: let's say you have an accord with a $10,000 CL and an $8000 balance.  You want to pay it down to under 50% so you aim for 48.9% balance or $4890 after a payoff.  But if interest accrues and is posted on the statement cut date, your new interest of $120 may get posted on top of your new fresh $4890 balance and you'll end up reporting $5010 which is over 50%.  Oops!

 

So definitely post your new balances and if they included new interest or not.


Thanks!  I made sure that anything that wasn't getting paid off was a little more than 1% less than the threshold.  Meaning.... If I wanted to keep it under 30% I made sure that it was no more than 28.9%..... that way if the interest hits it hopefully won't push me over the 30% mark Smiley Happy


Current FICO Scores: EQ749; TU732; EX733
Message 22 of 30
ABCD2199
Senior Contributor

Re: Have money to pay CC's but need help determining which ones

That's the cr*ppy thing about it.  If you pay down to 28.9% and interest puts you over 29.1%, it will round up to 30% Smiley Sad

 

So you want to pay down to 28.9% minus interest that may post, which can be quite a bit on some cards!

 

Repor back regardless and let's see what we see!

Message 23 of 30
Barneygirl
Frequent Contributor

Re: Have money to pay CC's but need help determining which ones


@ABCD2199 wrote:

That's the cr*ppy thing about it.  If you pay down to 28.9% and interest puts you over 29.1%, it will round up to 30% Smiley Sad

 

So you want to pay down to 28.9% minus interest that may post, which can be quite a bit on some cards!

 

Repor back regardless and let's see what we see!


Yeah, I know.... problem is I only have so much $$ to throw at this for now.  Even if I do end up having one go over due to interest, at least I can pretty much expect a decent jump going from a 79% combined utilization, with 4 cards over 90% to a combined utilization of 28% with one card (my largest balance) being under 50%. Smiley Happy

 

Will be interesting to see what happens!  Will definitely let you guys know Smiley Happy


Current FICO Scores: EQ749; TU732; EX733
Message 24 of 30
Barneygirl
Frequent Contributor

Re: Have money to pay CC's but need help determining which ones

So... good news so far folks!  I just had my first payment on my paydown plan hit yesterday.  Dropped one card from 91% utilization down to 27%. 

 

Result - 11 point increase!

 

Waiting anxiously for the others to hit now!! Smiley Happy


Current FICO Scores: EQ749; TU732; EX733
Message 25 of 30
Barneygirl
Frequent Contributor

Re: Have money to pay CC's but need help determining which ones


@Barneygirl wrote:

So... good news so far folks!  I just had my first payment on my paydown plan hit yesterday.  Dropped one card from 91% utilization down to 27%. 

 

Result - 11 point increase!

 

Waiting anxiously for the others to hit now!! Smiley Happy


Okay, so the same card just hit EQ and I got an 18 pt increase.  

 

So far one card reduced from 91% to 27%

EX increase of 11 pts

EQ increase of 18 pts

 

Now I'm in hurry up and wait mode while I wait for the next two cards to hit over the next 5-7 days.  Smiley Happy


Current FICO Scores: EQ749; TU732; EX733
Message 26 of 30
wasCB14
Super Contributor

Re: Have money to pay CC's but need help determining which ones

Am I missing something? OP's utilization is/was very high...that I get...but it seems no one is talking about APRs.
Spend: BofA PR + WWFCR, BBP, Schwab Platinum, CFF+CF, Costco, Discover
Perks: IHG49, Hyatt75, Delta Platinum, "Old" SPG95
SD/AAoA Ballast: Arrival, CFU, DC
Upgrade/downgrade games: BCE, EDP
SUB: JetBlue, Amex Platinum
Mostly earning MRs and cash back as I use up hotel and airline points spread across several programs.
Message 27 of 30
medicgrrl
Valued Contributor

Re: Have money to pay CC's but need help determining which ones

Congrats on the score increase so far!

wasCB...OP wanted to improve scores as the #1 priority. He/she is paying them all off by August so interest differences are going to be minimal and was not the concern of the OP. If they were looking for a long term solution, you would see much debate about that.


EQ 778 EXP 782 TU 729
Message 28 of 30
Barneygirl
Frequent Contributor

Re: Have money to pay CC's but need help determining which ones

Hey MYFICO community.... wanted to give you all an update on what came out of my journey!

 

since first posting I have paid off all but two credit cards.  The two remaining are paid to under 50%, leaving me with an overall utilization of 16%.

 

I went from 84% utilization across the board, to 16% and my scores have jumped almost 100 points (all three have jumped almost that much!)

 

Working to get one final account listed with the correct amount and expect another small bump.  But I'd say that 100 points was a pretty good return!!

 

 

Finally hit 700's across the board!!  Next stop 800!! Smiley Happy

 

Thanks for all the advice!


Current FICO Scores: EQ749; TU732; EX733
Message 29 of 30
HeavenOhio
Community Leader
Senior Contributor

Re: Have money to pay CC's but need help determining which ones

Good work! Smiley Happy

Message 30 of 30
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