WHAT CARDS TO PAY

[izach26]

My Partner and I, of 10 years  **NOT MARRIED** have a total of $39,860 in Credit Card debt Combined (Mine $14,236) (His $25,624)  none of the cards are late or over the limit. My Christmas bonus is $15,000 this year. Im looking for the smartest way to pay for the biggest score jump between the both of us. Im worried if we pay the Discover they will pull some shenanigans and lower the limit down to like $1000 or something - which will kill out utilization after paying such a large chunk. What do you guys sugget the best plan of action is?? 

Option 1 - Pay off my entire $14,236 off and get the best possible score I can get

Option 2 - Pay off  his and the Largest Card .....Discover\Im authorized user $14,000 Balance

Option 3 - Spread the Payments over all the accounts bring the utilization down over all accounts

[Horseshoez]

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@izach26 wrote:

My Partner and I, of 10 years  **NOT MARRIED** have a total of $39,860 in Credit Card debt Combined (Mine $14,236) (His $25,624)  none of the cards are late or over the limit. My Christmas bonus is $15,000 this year. Im looking for the smartest way to pay for the biggest score jump between the both of us. Im worried if we pay the Discover they will pull some shenanigans and lower the limit down to like $1000 or something - which will kill out utilization after paying such a large chunk. What do you guys sugget the best plan of action is?? 

Option 1 - Pay off my entire $14,236 off and get the best possible score I can get

Option 2 - Pay off  his and the Largest Card .....Discover\Im authorized user $14,000 Balance

Option 3 - Spread the Payments over all the accounts bring the utilization down over all accounts

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Congratulations on both your 10 years together and on your bonus.  I would argue your best approach would be to pay down the card(s) with the highest interest rates.

[coldfusion]

For a high level view of the general principle typically suggested to follow, search online for the "credit snowball method".

There are 2 main variants:

a) target the accounts with the highest interest rate(s) first

b) target the accounts with the smallest balances first

Personally I prefer the version that targets the highest interest rate but both are valid, and some people are more strongly motivated by seeing the number of accounts with balances reporting shrink. 

If your primary goal is to boost scores you may need to also consider the utilization percentages across each of your cards individually.   

There is always the risk that you will be balance-chased by 1 or more of your creditors. 

[FireMedic1]

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@izach26 wrote:

My Partner and I, of 10 years  **NOT MARRIED** have a total of $39,860 in Credit Card debt Combined (Mine $14,236) (His $25,624)  none of the cards are late or over the limit. My Christmas bonus is $15,000 this year. Im looking for the smartest way to pay for the biggest score jump between the both of us. Im worried if we pay the Discover they will pull some shenanigans and lower the limit down to like $1000 or something - which will kill out utilization after paying such a large chunk. What do you guys sugget the best plan of action is?? 

Option 1 - Pay off my entire $14,236 off and get the best possible score I can get

Option 2 - Pay off  his and the Largest Card .....Discover\Im authorized user $14,000 Balance

Option 3 - Spread the Payments over all the accounts bring the utilization down over all accounts

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If you chose this option. Get off the AU card ASAP. Their stats (util) affect you also. One of you can be clean file. Then work on thiers to get it back on track.

[SouthJamaica]

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@izach26 wrote:

My Partner and I, of 10 years  **NOT MARRIED** have a total of $39,860 in Credit Card debt Combined (Mine $14,236) (His $25,624)  none of the cards are late or over the limit. My Christmas bonus is $15,000 this year. Im looking for the smartest way to pay for the biggest score jump between the both of us. Im worried if we pay the Discover they will pull some shenanigans and lower the limit down to like $1000 or something - which will kill out utilization after paying such a large chunk. What do you guys sugget the best plan of action is?? 

Option 1 - Pay off my entire $14,236 off and get the best possible score I can get

Option 2 - Pay off  his and the Largest Card .....Discover\Im authorized user $14,000 Balance

Option 3 - Spread the Payments over all the accounts bring the utilization down over all accounts

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I would need to know what accounts there are, what the limits are, and what the balances are, in order to make a recommendation. Also if 15k is gross or net, and if gross what the approximate net will be.

[SlideOrInsert]

is their a specific reason you both are looking for a score jump? are you both going to be seeking financing for something major soon?

if not then keep it simple, just pay yours down to all zero except one (AZEO) with a small balance. then apply what ever the total amount you were paying to his largest apr % balance and work down from there.

[izach26]

Yes, I was going to remove myself off all AU account besides the oldest account - pay off all my balances and the his 1 account that im still listed on - then attack each one of his accounts. 

[izach26]

$15K will be the Net -  the accounts are listed belowo

My Accounts are : 

Discover	$4,358.00	$4,500.00
Home Depot	$2,517.00	$2,500.00
US Bank	$270.00	$300.00
Contintal Finance Reflex	$470.00	$500.00
Pay Pal	$1,996.00	$1,700.00
Apple Card	$1,335.00	$1,500.00
Blaze	$870.00	$850.00
1st Savings	$830.00	$850.00
Merrick	$500.00	$500.00
Amex	$1,000.00	$1,000.00
Show Mastercard	$0.00	$1,000.00
Lowes	$90.00	$1,037.00

TOTAL                                 $14,236.00         $16,237.00

HIS Accounts are

Discover	$14,000.00	$14,000.00
Citibank	$3,000.00	$3,000.00
Cap One Platinum	$1,726.00	$1,800.00
Cap One Quick Silver	$1,333.00	$1,250.00
Cap One Cash	$740.00	$750.00
Cap One Platinum	$1,000.00	$1,000.00
JFCU	$1,500.00	$1,500.00
Chase	$1,000.00	$1,000.00
Khols	$220.00	$1,000.00
Home Depot	$305.00	$3,500.00
Amazon	$800.00	$800.00

TOTAL:                               $25,624.00             $29,600.00

[izach26]

Just want to become more finacally stable - we purchsed a home in 2018 and 3 new cars in 2021 - we we wont be making any large purchases anytime soon 

[mgood]

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@izach26 wrote:

 . . . we we wont be making any large purchases anytime soon 

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Then "Finances before FICOs."

The most economical way to do it is focus on paying off the accounts with the highest interest first. 

But the above-mentioned snowball method can be an easier way to build momentum and see your progress,  which can help keep you mentally focused on the goal. Pay off the smallest, then the next smallest, etc.