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Payoff closed Citi credit card in full or USAA balance

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fsalsa2
Regular Contributor

Payoff closed Citi credit card in full or USAA balance

Hello FICO forums, I have been an active member for a few months now but have been utilizing the forums for a couple of years now. It's been about a year since I've been researching heavily and rebuilding my credit due since I was a victim of credit fraud and just didn't fully understand credit cards in general. I am at a point now where I can see that my hard work is paying off and have increased my score FICO 8 and 9 scores by over 100 points in a year thanks to all of the helpful information on here provided by people who really want to see people succeed. Here are a couple of DP's about my current profile:

current FICO 8's: EX: 644, TU: 695, EQ: 684

current utilization: 45%
AAOA: 4 years and 3 months (will likely go down since I have just applied and received approval for 2 Amex cards)

Total credit line: $24,375

 

My question is a two part question. Should I pay my citi card in full and try to negotiate all derogatory data to be removed? My citi card was opened by a family member without my knowledge and after going through the fraud department they deemed that I had knowledge of the account. It currently has a balance of: $2,171 and shows a few late payments on the report. It only impacts my Experian report for total utilization but not my other two. On the other hand I have a USAA CC with a $1480 balance that I can either pay off immediately or in the next 1 month. I guess the bottom line is, should I even try to settle with citi bank or make the minimum monthly payments and pay it off at a later date? 




NFCU Cash Rewards: $24,000
NFCU More Rewards: $24,000
NFCU Visa Signature Go Rewards: $29,600
Capital One Quicksilver: $500
Capital One Quicksilver One: $500
Military Star Card: $ 3,400
Venmo Credit Card: $5,400
USAA Platinum Visa: $4,000
American Express Delta Skymiles Reserve: $10,000
American Express Platinum
X1 Credit Card: $ 27,500
Chase Freedom Flex: $ 3,700
Message 1 of 6
5 REPLIES 5
hawkins
Frequent Contributor

Re: Payoff closed Citi credit card in full or USAA balance

Pay USAA first as it has the lowest balance. Pay Citi more than the minimum every month 2 to 3x or more if you can and it will be fine. USAA is still open and they do not like people carrying balances so take care of the open one first to hopefully keep it open. You are on the right path keep it it up it will be fine. Best of luck.

Message 2 of 6
fsalsa2
Regular Contributor

Re: Payoff closed Citi credit card in full or USAA balance

Thanks very much for the advice! 




NFCU Cash Rewards: $24,000
NFCU More Rewards: $24,000
NFCU Visa Signature Go Rewards: $29,600
Capital One Quicksilver: $500
Capital One Quicksilver One: $500
Military Star Card: $ 3,400
Venmo Credit Card: $5,400
USAA Platinum Visa: $4,000
American Express Delta Skymiles Reserve: $10,000
American Express Platinum
X1 Credit Card: $ 27,500
Chase Freedom Flex: $ 3,700
Message 3 of 6
SouthJamaica
Mega Contributor

Re: Payoff closed Citi credit card in full or USAA balance


@fsalsa2 wrote:

Hello FICO forums, I have been an active member for a few months now but have been utilizing the forums for a couple of years now. It's been about a year since I've been researching heavily and rebuilding my credit due since I was a victim of credit fraud and just didn't fully understand credit cards in general. I am at a point now where I can see that my hard work is paying off and have increased my score FICO 8 and 9 scores by over 100 points in a year thanks to all of the helpful information on here provided by people who really want to see people succeed. Here are a couple of DP's about my current profile:

current FICO 8's: EX: 644, TU: 695, EQ: 684

current utilization: 45%
AAOA: 4 years and 3 months (will likely go down since I have just applied and received approval for 2 Amex cards)

Total credit line: $24,375

 

My question is a two part question. Should I pay my citi card in full and try to negotiate all derogatory data to be removed? My citi card was opened by a family member without my knowledge and after going through the fraud department they deemed that I had knowledge of the account. It currently has a balance of: $2,171 and shows a few late payments on the report. It only impacts my Experian report for total utilization but not my other two. On the other hand I have a USAA CC with a $1480 balance that I can either pay off immediately or in the next 1 month. I guess the bottom line is, should I even try to settle with citi bank or make the minimum monthly payments and pay it off at a later date? 


My recommendation would be to pay off the closed Citibank account.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 703 TU 704 EX 691

Message 4 of 6
fsalsa2
Regular Contributor

Re: Payoff closed Citi credit card in full or USAA balance

Why would it be a better option? 




NFCU Cash Rewards: $24,000
NFCU More Rewards: $24,000
NFCU Visa Signature Go Rewards: $29,600
Capital One Quicksilver: $500
Capital One Quicksilver One: $500
Military Star Card: $ 3,400
Venmo Credit Card: $5,400
USAA Platinum Visa: $4,000
American Express Delta Skymiles Reserve: $10,000
American Express Platinum
X1 Credit Card: $ 27,500
Chase Freedom Flex: $ 3,700
Message 5 of 6
SouthJamaica
Mega Contributor

Re: Payoff closed Citi credit card in full or USAA balance


@fsalsa2 wrote:

Why would it be a better option? 


That account with its negative history will be weighing you down for many years.  If you don't give Citibank the money you owed them, you're not going to get anywhere with removing the negative history.

 

Additionally, it's bad for your scores from a utilization perspective. The balance is being factored into utilization, and the limit is not.

 

 


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 703 TU 704 EX 691

Message 6 of 6
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