@EAJuggalo wrote:
@tschaet wrote:
@CreditInspired wrote:
@tschaet wrote:I currently have two open credit cards that I am paying down on. I am hoping to get the utilization low on those. Currently it's in the 90s %-wise. I do, however, have a third card that was closed (not by me) when it was just beyond its limit. I am currently making payments on it, but it's a large amount ($14K) and will take me quite some time to pay down. Will that credit card continue to affect my utilization rate even though it has been closed?
Credit utilization seems to be the main thing tanking my scores...
Hi OP
If you don't mind, provide us the CC name, CLs, APR, min pymt, and outstanding balance on those 3 cards, and also amount of disposable income you can throw at them. We'll be able to guide you on how to lower balances strategically.
I have three cards:
- Discover It
- CL: $1250
- Balance: $1246.01
- APR: 18.24%
- Minimum payment: $36.27
- Capital One Quicksilver
- CL: $2000
- Balance: $1987.94
- APR: 24.74%
- Minimum payment: $45.00
- Navy Federal Credit Union (Closed)
- CL: $13,500.00
- Balance: $14,123.16
- APR: 6% (temporarily due to payment agreement)
- Minimum payment: $143 (due to payment agreement)
It's actually even worse than you think. Utilization is figured as revolving debt as a percentage of open credit lines. So right now you're showing of $17,600 with an open credit lines of $3,500. You're not going to see much of a change until you get the total amount you owe below $3,150.
The best thing you can do right now is pay the minimums on the Navy and Discover and pay as much as you can on the CapOne. Once the CapOne is paid off go to the Discover, then pay off Navy last.
Thanks! Paying off the Cap One and Discover ones shouldn't take too long. The Navy Federal one, however, will take a bit....
$1700
$2000
