Reducing 90% UTI

[my_2_girls]

So I have a high UTI but low DTI so I'm making a plan to pay off debt.  The issue is that the lease is up on my vehicle in November so I will be trading into another lease by mid October. The vehicle I'm looking at will be $100-150 a month cheaper than my current.  My DTI is at 34% (hoping this will drop to 32% once I pay down some debt) Below is my current situation:

FICO Score 8 per MyFico: EQ 645 TU 647 EX 636

Auto Score 8:  EQ 676 TU 642 EX 670

1 medical collection $188 - paid but still showing as a collection/paid Due to fall off in December 2017

$53,000 Credit limit, $47,800 bal across 10 cards; 2 of the 10 are store cards (90% uti- had a major surgery and out of pocket plus deductible was due before they would even schedule so no payment arrangements could even be made)  

I plan to pay $14,800 (in reality 13,800 to the balance to allow for interest)  between now and October 1st so that would lower my balance to 34,000

34,000/53,000 is still 64% UTI but thats better than 90%. I'd have it below 50% by Jan/Feb but have no choice to apply for a car due to lease end (and I rather only lease at this point) 

Is it smarter to spread the $13,800 across all cards or should I get 2 of them down to 0 and lower a few others and try to balance transfer some. I'm also hoping to apply for a consolidation loan end of Sept  - was rejected last week through LC and BestEgg due to high util but maybe that will change

CapitalOne Auto pre-approved me for $40,000 loan but need a lease. I'm looking at leasing a jeep with a $42,000 msrp - not sure if I have to qualify for $42k or the leased portion; credit reposrt shows on current lease only the leased amount not msrp.

Any advice on the pay down and if its even a possibility to lease a vehicle if my auto 8 score bumps up to 690/700 by the time I'm ready? 

[Thomas_Thumb]

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@my_2_girls wrote:

So I have a high UTI but low DTI so I'm making a plan to pay off debt.  The issue is that the lease is up on my vehicle in November so I will be trading into another lease by mid October. The vehicle I'm looking at will be $100-150 a month cheaper than my current.  My DTI is at 34% (hoping this will drop to 32% once I pay down some debt) Below is my current situation:

FICO Score 8 per MyFico: EQ 645 TU 647 EX 636

Auto Score 8:  EQ 676 TU 642 EX 670

1 medical collection $188 - paid but still showing as a collection/paid Due to fall off in December 2017

$53,000 Credit limit, $47,800 bal across 10 cards; 2 of the 10 are store cards (90% uti- had a major surgery and out of pocket plus deductible was due before they would even schedule so no payment arrangements could even be made)  

I plan to pay $14,800 (in reality 13,800 to the balance to allow for interest)  between now and October 1st so that would lower my balance to 34,000

34,000/53,000 is still 64% UTI but thats better than 90%. I'd have it below 50% by Jan/Feb but have no choice to apply for a car due to lease end (and I rather only lease at this point) 

Is it smarter to spread the $13,800 across all cards or should I get 2 of them down to 0 and lower a few others and try to balance transfer some. I'm also hoping to apply for a consolidation loan end of Sept  - was rejected last week through LC and BestEgg due to high util but maybe that will change

CapitalOne Auto pre-approved me for $40,000 loan but need a lease. I'm looking at leasing a jeep with a $42,000 msrp - not sure if I have to qualify for $42k or the leased portion; credit reposrt shows on current lease only the leased amount not msrp.

Any advice on the pay down and if its even a possibility to lease a vehicle if my auto 8 score bumps up to 690/700 by the time I'm ready? 

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From a scoring perspective, I'd recommend paying down all your cards so each has a balance between 68% and 68.9%. Then using the remainder to pay off a low limit card if funds allow. However, you may want to consider paying down to below 89% on all cards to get them below max out territory and then focus on dropping balances on highest APR cards - if you have substantial APR differences among your cards.

[my_2_girls]

Thanks! I think I'll look at paying my cards down to 68% across the board and then pay a low limit one off like you suggest.

[Anonymous]

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@my_2_girls wrote:

So I have a high UTI but low DTI so I'm making a plan to pay off debt.  The issue is that the lease is up on my vehicle in November so I will be trading into another lease by mid October. The vehicle I'm looking at will be $100-150 a month cheaper than my current.  My DTI is at 34% (hoping this will drop to 32% once I pay down some debt) Below is my current situation:

FICO Score 8 per MyFico: EQ 645 TU 647 EX 636

Auto Score 8:  EQ 676 TU 642 EX 670

1 medical collection $188 - paid but still showing as a collection/paid Due to fall off in December 2017

$53,000 Credit limit, $47,800 bal across 10 cards; 2 of the 10 are store cards (90% uti- had a major surgery and out of pocket plus deductible was due before they would even schedule so no payment arrangements could even be made)  

I plan to pay $14,800 (in reality 13,800 to the balance to allow for interest)  between now and October 1st so that would lower my balance to 34,000

34,000/53,000 is still 64% UTI but thats better than 90%. I'd have it below 50% by Jan/Feb but have no choice to apply for a car due to lease end (and I rather only lease at this point) 

Is it smarter to spread the $13,800 across all cards or should I get 2 of them down to 0 and lower a few others and try to balance transfer some. I'm also hoping to apply for a consolidation loan end of Sept  - was rejected last week through LC and BestEgg due to high util but maybe that will change

CapitalOne Auto pre-approved me for $40,000 loan but need a lease. I'm looking at leasing a jeep with a $42,000 msrp - not sure if I have to qualify for $42k or the leased portion; credit reposrt shows on current lease only the leased amount not msrp.

Any advice on the pay down and if its even a possibility to lease a vehicle if my auto 8 score bumps up to 690/700 by the time I'm ready? 

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I would take a few grand from the $14k you plan on paying on your credit cards between now and October and buy a car for cash when your lease is up. Drive it and get yourself out of debt and then be in a stellar position to lease a $40k car.

[CreditInspired]

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@Anonymous wrote:

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@my_2_girls wrote:

So I have a high UTI but low DTI so I'm making a plan to pay off debt.  The issue is that the lease is up on my vehicle in November so I will be trading into another lease by mid October. The vehicle I'm looking at will be $100-150 a month cheaper than my current.  My DTI is at 34% (hoping this will drop to 32% once I pay down some debt) Below is my current situation:

FICO Score 8 per MyFico: EQ 645 TU 647 EX 636

Auto Score 8:  EQ 676 TU 642 EX 670

1 medical collection $188 - paid but still showing as a collection/paid Due to fall off in December 2017

$53,000 Credit limit, $47,800 bal across 10 cards; 2 of the 10 are store cards (90% uti- had a major surgery and out of pocket plus deductible was due before they would even schedule so no payment arrangements could even be made)  

I plan to pay $14,800 (in reality 13,800 to the balance to allow for interest)  between now and October 1st so that would lower my balance to 34,000

34,000/53,000 is still 64% UTI but thats better than 90%. I'd have it below 50% by Jan/Feb but have no choice to apply for a car due to lease end (and I rather only lease at this point) 

Is it smarter to spread the $13,800 across all cards or should I get 2 of them down to 0 and lower a few others and try to balance transfer some. I'm also hoping to apply for a consolidation loan end of Sept  - was rejected last week through LC and BestEgg due to high util but maybe that will change

CapitalOne Auto pre-approved me for $40,000 loan but need a lease. I'm looking at leasing a jeep with a $42,000 msrp - not sure if I have to qualify for $42k or the leased portion; credit reposrt shows on current lease only the leased amount not msrp.

Any advice on the pay down and if its even a possibility to lease a vehicle if my auto 8 score bumps up to 690/700 by the time I'm ready? 

---

I would take a few grand from the $14k you plan on paying on your credit cards between now and October and buy a car for cash when your lease is up. Drive it and get yourself out of debt and then be in a stellar position to lease a $40k car.

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+1

Totally agree with Steeler. This will allow you to put the entire monthly lease payment toward paying down your debt quickly. 

[ylekiot1]

I would get everything below 85% utilization then you have some options.

I would pay off the highest percentage of interest from there while also trying to reduce the smaller credit lines to zero so less cards overall have a balance.  The number of cards with a balance of the total lines you have does affect your score.  The store cards would be paid to zero first since they likely have the smallest lines and highest rates.  I also think the store cards with a balance are weighed more negatively then general use cards.  

Also look to see what credit lines have a higher monthly payment over total balance.  Most credit card payments are around 2% of the balance.  Anything that is really high compared to the others may be worth paying toward just for lowering DTI.  I combined payment toward the high interest rates and also things that can lower dti more effectivly while increasing the score too.  

[my_2_girls]

I would rather lease a vehicle due to tax break from farm/side business  than to pay cash for a vehicle.  Household income from employers is $211,180 so making a payment is not an issue.  Debt can be paid off in a year but need to trade out of lease before December. 

[my_2_girls]

Good idea! I was thinking of getting everything to 78% then using the rest to just pay off small balances as there is not much difference between 78% and 64% Plus I wont be paying interest on a card that is $0 and my monthly payments will decrease which will lower DTI. THanks for the advice  yleki0t1