Help me Allocate these funds to best increase score

[Anonymous]

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@coldfusion wrote:

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There's a certain amount of risk in that you might end up getting balance-chased.  That'll hurt your utilization numbers but your DTI numbers will still improve.

Shooting from the hip here a bit but I'd start by looking at something like:

With your original $6775

$729 Quicksilver ($0 balance)

$1699 Paypal ($0 balance) - also retires the debt you're carrying at the 2nd highest interest rate

Gets you to < 50% of your cards reporting a balance

$750 Venture - gets that card to below the 28.9% threshold

$2750 Amazon - gets that card to below the 28.9% threshold, also a significant drop of the debt you're carrying at the highest rate

$847 AMEX - gets that card to(barely) below the 48.9% threshold

Out of that $1150 monthly for the next 2 months:

$650 AMEX - in 2 months the card will be under 8.9%

$250 Venture

$250 Amazon

In month 3, your payments would look like:

$597 AMEX - ($0 balance)

$250 Venture

$303 Amazon

In months 4-5, your payments would look like:

$650 Venture

$500 Amazon

After month 5 your Venture card will be below the 8.9% threshold and you can focus solely on the Amazon card.

Going forward, anything beyond that $1150/month put toward the Venture card to get it paid off.  Once it's paid off you can exclusively target the Amazon card since it'll be the only one with a balance.

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Thanks for the response... i like the direction your going but i dont follow the math on the AMEX...  balance is 4995.  you suggest an initial payment on it of 847.  gets it to lke 4000.  then 2 payments of 650 that gets it to like 2800.  then you have a 597 payment brining it to 0?

I like the idea of bringing quicksilver and paypal to 0.  and widdling the others down.  and a big chunk at amazon since that has high interest.

someone i talked to in PM said i should do option B and then balance transfer amazon to AMEX and achieve AZEO.  but idk that would be over 98% util then?

[M_Smart007]

Would not want to be near 98% Util.   .. That is considered maxed out. IMHO

[coldfusion]

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@M_Smart007 wrote:

Would not want to be near 98% Util.   .. That is considered maxed out. IMHO

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Absolutely correct.

The AZEO technique used to try to maximze your FICO scores is based on having a single card reporting a small balance.

Told you I was shooting from the hip a bit 😬 got my signals crossed at month 3

If you followed with that $597 payment to AMEX that would get you comfortably below the 28.9% threshold as well - about 21%. with the $250 Venture and $303 to Amazon you'd be at $1344/$7750,  $1460/$8000, and $2251/$8500.  2 cards at under 18.9%, 1 under 28.9% utiliization.

In month 4,

$750 Amazon (594/7750)

$251 AMEX (2000/8500)

$149 Venture (1311/8000)

1 card under 8.9%  yay!

In month 5:

$625 Venture (686/8000)

$400 AMEX (1600/8500)

$125 Amazon (469/7750)

2 cards under 8.9%, yay!

In month 6:

$469 Amazon $0 balance

$250 Venture $486/$8000

$431 AMEX $1169/8500

1 card paid off, 1 card < 8.9%, 1 card < 18.9%.

I would throw all your extra cash each month at the Amazon card but still keep these payment numbers out of your $1150/month allocation.  You'll end up paying off the Amazon card early, so when you reach $0 balance on that card put all the money originally earmarked for the Amazon card + your extra cash toward the Venture.  When THAT reaches $0 balance, put all the money toward the AMEX.  If you can average $300/month in addition to that $1150 you can get all 3 cards paid off in 6 months.

You can play with nunbers based on personal preference, but the point here is that there are important milestones with regard to scoring and you can hopefully start to show incremental improvement in your scores especially after month 3.