cancel
Showing results for 
Search instead for 
Did you mean: 

No More Delusion - My Journey to Debt Freedom

Highlighted
Super Contributor

Re: No More Delusion - My Journey to Debt Freedom


@SouthJamaica wrote:

@zipperhead wrote:

@SouthJamaica wrote:

 

2.  It didn't bump your score. Your MyFICO alerts are often unrelated to the score change noted on the alert. There are certain events, such as a hard inquiry, which trigger MyFICO alerts. If there happens to be any difference between your present score at that particular bureau, and the previous score reported to you from that bureau, the score change is tacked on to the alert. No connection.


Still, wouldn't that be great??  I'd be at 850 in no time! And my friends would ask, and I could say "hey, it was easy, in fact it just APPened..." :-)


Yes it would be great. I would be the king of credit.


Well that's more true than almost anything I have heard.  SJ is (among other things) the local demigod of CUs.

 

SouthJ is giving great advice.  Leveraging the hard pull that they did for admission into the CU for your first product seems reasonable, if your report at that time will secure you the product you need.

 

In general, a common refrain on the FL forums is that people open some kind of account (or make a CLI request) and then are surpried later to discover a hard pull.  Try to avoid surprises as much as possible when making credit decisions.  The HP may totally be the right decision -- but always do what you can to research all implications of a choice before you make it, especially if it cannot be reversed. 

 

An example of an easily reversed decision is paying all cards to $0 -- that involves a score penalty, which surprises people, but you can fix it in one month with no cost by buying a gallon of milk at the grocery.

 

Hard pulls are examples of things that cannot be easily reversed.  Two other common examples are closing credit cards and paying off loans.  People are almost always stunned to discover when they (sometimes) result in harm to their score -- we get posts about this all the time  The more experienced folks on the forum (like SouthJ) then try to explain why the (now irreversible) thing hurt the score.  But of course the better thing would have been not to do it without consulting the community here first.

 

Of course, the huge problem with not knowing a thing is that it is by definition hard to figure out in advance what you do not know.  (That would mean knowing the things you do not know.)  Still, as you get more experienced here, you will begin to get a Spidey-sense for stuff that you should research first before pulling the trigger. 

 

In short, no problem with the HP, but use it as a teachable moment in learning what the implications of a decision might be beofre you make it.

Message 21 of 30
Highlighted
Established Member

Re: No More Delusion - My Journey to Debt Freedom

 

Sounds like a plan.  To get scores up for refinance opportunities, I would go after this:

Everything to under 85% to boost scores most then payoff small balances to reflect less lines with a balance to increase score - definitely the 54 balance, maybe the 826, then shift equally to credit lines and personal loans.  I would also look at payment divided by balance to see what items have the largest payment per balance percentage and get any wildly higher off the sheet to improve your montlhy available cash with the minimum payments.  This decreases your overall montlhy DTI.  Lots of variables.  If you want some help on what I mean on the overall DTI, let me know directly.  If you lower your dti as much as you can and take that into consideration in your plan, it may open the door sooner for better offers/options.  Happy to help.  If that is too much hassle, the minimizing the total carrying lines first then the highest interest is the easy plan.

 

 

 

Chase Sapphire

23.99% APR - $7,019.30 - 88% Utilization

 

Cap-One Platinum MC

20.80% APR - $5,618.48 - 98% Utilization

 

Citi AA Platinum 

22.49% - $4,136.50 - 98% Utilization

 

Cap-One Platinum MC

20.99% APR - $826.27 - 83% Utilization

 

Target Card

22.90% APR - $54.60 - 7% Utilization

 

Chase Slate

23.99% APR - $1,000.00 Limit - 0% Utilization

 

BBVA NBA

26.24% APR - $2,000.00 Limit - 0% Utilization

 

Lowes Card

26.99% APR - $300.00 Limit - 0% Utilization

 

Home Depot Card

26.99% APR - $500.00 Limit - 0% Utilization

 

Totals   $17,655.15 Balances - 75% Utilization    

 

 

Installment Loans  

 

OneMain Financial Loan

27.78% APR - $6,843.23 - 3 months old

 

Prosper Loan

16.73% APR - $3,045.67 - 18 months old

 

Lending Club Loan

14.31% APR - $2,200.14 - 16 months old

 

Totals   $12,089.04 (loans) + $17,655.14 (cards) = $29,744.19 (total debt)

 

 

 

 

 

Message 22 of 30
Highlighted
Established Member

Re: No More Delusion - My Journey to Debt Freedom

Also, once things are under 85% and the two small lines are paid and those are reflected in your scores, try Sofi personal loans.  They have a prequalify that wont hit your scores.  If you then decide to move forward with the quoted terms they will do a hard pull.  I would try them once you get scores to 700 across the board.

 

Message 23 of 30
Highlighted
Member

Re: No More Delusion - My Journey to Debt Freedom

Update: All credit cards to under 88% utilization.

 

Why do you say 85% as opposed to the 88.9% as previously quoted in this thread? Interesting points on the DTI. Are you saying the credit bureaus can see my minimum payments and that will affect scores? I've always assumed they just see the credit limit and balance and then make their own conclusions based on those numbers. Please correct me if I'm wrong. I could pay off the Capital One balance next week but my original plan was to attack the higher interest cards first. Do you think it would help my scores by reducing one more card to $0 before attacking the Chase card?

 

Where I'm currently at:

 

Chase Sapphire

23.99% APR - $5,619.30 - 70% Utilization

 

Cap-One Platinum MC

20.80% APR - $5,047.11 - 88% Utilization

 

Citi AA Platinum 

22.49% - $3,686.50 - 88% Utilization

 

Cap-One Platinum MC

20.99% APR - $826.27 - 83% Utilization

 

Target Card

22.90% APR - $800 Limit - 0% Utilization

 

Chase Slate

23.99% APR - $1,000.00 Limit - 0% Utilization

 

BBVA NBA

26.24% APR - $2,000.00 Limit - 0% Utilization

 

Lowes Card

26.99% APR - $300.00 Limit - 0% Utilization

 

Home Depot Card

26.99% APR - $500.00 Limit - 0% Utilization

 

Totals   $15,179.18 Balances - 64% Utilization    

 

 

Installment Loans  

 

OneMain Financial Loan

27.78% APR - $6,843.23 - 3 months old

 

Prosper Loan

16.73% APR - $3,045.67 - 18 months old

 

Lending Club Loan

14.31% APR - $2,200.14 - 16 months old

 

Totals   $12,089.04 (loans) + $15,179.18 (cards) = $27,268.22 (total debt)

 

Message 24 of 30
Highlighted
Super Contributor

Re: No More Delusion - My Journey to Debt Freedom


@Zimmerman wrote:

Update: All credit cards to under 88% utilization.

 

Why do you say 85% as opposed to the 88.9% as previously quoted in this thread? Interesting points on the DTI. Are you saying the credit bureaus can see my minimum payments and that will affect scores? I've always assumed they just see the credit limit and balance and then make their own conclusions based on those numbers. Please correct me if I'm wrong. I could pay off the Capital One balance next week but my original plan was to attack the higher interest cards first. Do you think it would help my scores by reducing one more card to $0 before attacking the Chase card?

 

Where I'm currently at:

 

Chase Sapphire

23.99% APR - $5,619.30 - 70% Utilization

 

Cap-One Platinum MC

20.80% APR - $5,047.11 - 88% Utilization

 

Citi AA Platinum 

22.49% - $3,686.50 - 88% Utilization

 

Cap-One Platinum MC

20.99% APR - $826.27 - 83% Utilization

 

Target Card

22.90% APR - $800 Limit - 0% Utilization

 

Chase Slate

23.99% APR - $1,000.00 Limit - 0% Utilization

 

BBVA NBA

26.24% APR - $2,000.00 Limit - 0% Utilization

 

Lowes Card

26.99% APR - $300.00 Limit - 0% Utilization

 

Home Depot Card

26.99% APR - $500.00 Limit - 0% Utilization

 

Totals   $15,179.18 Balances - 64% Utilization    

 

 

Installment Loans  

 

OneMain Financial Loan

27.78% APR - $6,843.23 - 3 months old

 

Prosper Loan

16.73% APR - $3,045.67 - 18 months old

 

Lending Club Loan

14.31% APR - $2,200.14 - 16 months old

 

Totals   $12,089.04 (loans) + $15,179.18 (cards) = $27,268.22 (total debt)

 


It will help your scores to reduce another credit card account to zero.


Total revolving limits 653000 (575000 reporting)

Message 25 of 30
Highlighted
Regular Contributor

Re: No More Delusion - My Journey to Debt Freedom

The last time I made a big debt reduction push I took out a $10k 401(k) loan and dipped into my short term reserves.  I was the only one who did what I did at the company I was at and I serviced multiple million dollar fortune 500 accounts.  I thought my job was unasailable.  The Private equity firm that acquired us the following month did not agree.  That $10,000 401(k) loan became immediately due and it took me 3 months to find a job in my field.  Since I had the loan outstanding and was already going to take a tax hit I cashed out the rest of the 401(k) to live on and move to a new city to find work.  I am just now starting to recover and am still negotiating with the IRS on how to pay back the thousands I owe them over that fiasco.  I cannot stress enough how risky a 401(k) loan is.  I recommend leaving the 401(k) alone and making sure you have a bare minimum of 3 months (prefably 6) expenses in reserve before you get agressive with your debt.  Pay at least twice the minum, but do not risk it all for short term gains.

Starting June 2017 EQ-629, TU-636, EX-637
Current as of May 2019 EQ-717, TU-707, EX-750
Goal for June 2020 EQ-740+, TU-740+, EX-740+

Message 26 of 30
Highlighted
Member

Re: No More Delusion - My Journey to Debt Freedom

I appreciate all the responses. I slipped a bit this last month but I had to do some traveling which was unavoidable. There's been a few updates since my last post. I let my reports update with the new utilization and applied for a Barclay Cash Forward card with plans to BT from the Chase Sapphire. Instant denial online but I called for a recon and they agreed to a $6,000 limit to cover the BT with 0% APR for 15 months! This should help my overall utilization as well Smiley Happy

 

I also applied for a personal loan from Lending Club, Prosper and Truwest CU. Lending Club denied me, Truwest is reviewing the application, and Prosper offered me a loan at 30%!!! I'll wait to hear from the CU. The idea with the personal loan is I can pay off the car title loan in addition to more credit card debt. If I took the Prosper loan it would be as a short term solution. I havent decided yet but I'm mulling the idea of selling my car to pay off the personal loan and move into leasing a new car. Makes more sense to put that money towards something I would enjoy than waste it on a high interest loan payment. 

 

I'm stilling considering a 401k loan. Despite the warnings I think it might make sense in my current situation.

 

I also merged my Capital One and Chase cards to simplifiy things. Here's my current situation.

 

Equifax - 639

Transunion - 665

Experian - 677

 

 

Chase Sapphire

23.99% APR - $7,813.14 - 87% Utilization

 

Cap-One Platinum MC

20.80% APR - $5,047.11 - 73% Utilization

 

Citi AA Platinum 

22.49% - $3,526.99 - 84% Utilization

  

Target Card

22.90% APR - $800 Limit - 0% Utilization

  

BBVA NBA

26.24% APR - $2,000.00 Limit - 0% Utilization

 

Lowes Card

26.99% APR - $300.00 Limit - 0% Utilization

 

Home Depot Card

26.99% APR - $500.00 Limit - 0% Utilization

 

Totals   $16,240.24 Balances - 69% Utilization    

 

 

Installment Loans  

 

OneMain Financial Loan

27.78% APR - $6,843.23 - 3 months old

 

Prosper Loan

16.73% APR - $2,880.50 - 18 months old

 

Lending Club Loan

14.31% APR - $2,200.14 - 16 months old

 

Totals   $11,828.52 (loans) + $16,240.24 (cards) = $28,068.24 (total debt)

 

 

Message 27 of 30
Highlighted
Valued Contributor

Re: No More Delusion - My Journey to Debt Freedom

DO NOT take a 401k loan

 

1. If the idea of taking a loan from your 401k plan crosses your mind, stop and think before you act. Instead of short changing your future to finance your lifestyle, you and your wife should consider re-evaluating your current lifestyle instead.

 

If you list all your expenses, I assure you I can find some you can cut/reduce EASILY!  Also, if the business is not getting anywhere and you're financing it with your CCs, you  will be back to square one again.




FICO 8 Scores EQ 704 / Goal 750, EX 706 / Goal 750, TU 724 / Goal 750

FICO 9 Scores EQ 726 / Goal 750, EX 683 / Goal 750, TU 726 / Goal 750
Message 28 of 30
Highlighted
Member

Re: No More Delusion - My Journey to Debt Freedom

I've already made cuts to my expenses and lifestyle. There's only so much you can do when you're in a relationship. I can easily make all of my payments and my wife is starting to bring in some significant income to help offset my expenses. At this point the challenge is staying focused and on course. I'd like to pay off my debt as well as increase my scores. I think the 401k loan can help acomplish both. I wouldn't consider if I didn't feel confident in my job security. 

 

I just got off the phone with Lowes and they raised my credit limit to 5k. This should also help with my utlization.

 

Back to gardening and paying down debt.

Message 29 of 30
Highlighted
Valued Contributor

Re: No More Delusion - My Journey to Debt Freedom

Good on the CLI, it will help.  Well, if you did all you could to minimize cost, i guess the 401k it is Smiley Happy

 

Good luck and keep us posted!




FICO 8 Scores EQ 704 / Goal 750, EX 706 / Goal 750, TU 724 / Goal 750

FICO 9 Scores EQ 726 / Goal 750, EX 683 / Goal 750, TU 726 / Goal 750
Message 30 of 30
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.