Payoff

[Anonymous]

So I have a credit card with a balance of 3000 on it deferred interest. my GF is going to be paying me 2000 in a monthish and I was trying to determine if I should pay it all to that card at once, or should I simply increase the amount I pay monthly with it instead? The deferred interests will last a while longer so its not of immediate concern. Its also at 24% of limit. Oh and none of my other cards are not so high or that utilization. 

[Anonymous]

---

wrote:

So I have a credit card with a balance of 3000 on it deferred interest. my GF is going to be paying me 2000 in a monthish and I was trying to determine if I should pay it all to that card at once, or should I simply increase the amount I pay monthly with it instead? The deferred interests will last a while longer so its not of immediate concern. Its also at 24% of limit.

---

There is a threshold at 8.9% and 28.9%.  There MIGHT be a threshold at 18.9% but no one has proven or disproven this.  If there is one, it's only 1-3 FICO points.

I'd say if she's OK with it, stuff the cash in HYS and pay the minimum unless FICO points right now are imporant, then pay down to 8.9%, stuff the rest in HYS and pay off the minimum but make sure it's $0 before the end of the promotion.

[marty56]

Deferred interest, 0% BTs et all have a way of sneaking up on you when you least expect it.  If you don't PIF the card at least stop using it to prevent the CCC from doing any creative interest or balance calculations.

[Anonymous]

ah okay well i can pay out 250 to bring it under the 28% mark but even if I threw the full 2000 at it, it would bring down the util to about 12% anyway. the points are not high importance at this moment.. will be in aug or sept but i will easily have it paid off then.