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Need help determining order of payoff!

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Established Member

Need help determining order of payoff!

I am attempting to tackle my last three cards :

Discover $3300/$8500 (0% APR until 10/2019) - $51 min.
Discover (Husband's card, not AU) $4900/$10,500 (0% APR until 4/2019ish) - $98 min.
NFCU $2200/$15000 (16.99% APR) - $40ish min.

What order should I be handling these? I have about $2k right now to play with. I'm looking to apply for a mortgage in a couple of months, if that matters.

In what order should I take care of these?

(I have 7 or 8 other cards, all reporting $0 balances.)

Thank you!
Message 1 of 8
7 REPLIES 7
Super Contributor

Re: Need help determining the order of payoff!


@Seize_Today wrote:
I wasn't sure where to post this, so I put it here and in the General Credit section. Forgive me if it's not the right place...

I am attempting to tackle my last three cards :

Discover $3300/$8500 (0% APR until 10/2019) - $51 min.
Discover (AU) $4900/$10,500 (0% APR until 4/2019ish) - $98 min.
NFCU $2200/$15000 (16.99% APR) - $40ish min.

What order should I be handling these? I have about $2k right now to play with. I'm looking to apply for a mortgage in a couple of months, if that matters.

In what order should I take care of these?

(I have 7 or 8 other cards, all reporting $0 balances.)

Thank you!

My recommendation would be to get both Discover cards below 29%, then zero out the NFCU card.

 

PS You're not supposed to post the same thing in 2 different categories.


Total revolving limits 732500 (606000 reporting) FICO 8 scores: EQ 715 TU 760 EX 735
Message 2 of 8
Community Leader
Valued Contributor

Re: Need help determining order of payoff!

Of course it’s your choice ultimately. But if it were me, I would put all or most of it toward that Navy card. I’m sure others will chime in with other strategies, but that’s how I would roll. Another way I would consider would be splitting it pretty evenly between all of them just to bring down utilization. 

Discover It: 19.7k
Amex BCE: 18k
Citi DC: 5.7k
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Once you go Berner, you never go back.
Message 3 of 8
Frequent Contributor

Re: Need help determining order of payoff!

I'd split the difference and throw 1K at your Discover to get it below 29% UTI, and 1K

toward the NFCU that's charging interest.


Message 4 of 8
Frequent Contributor

Re: Need help determining order of payoff!

My priority is always personal finance first, optimizing credit a very distant second.  Cash is King.  To that end, I'd knock out the NFCU first (while making min payments on others). Then, the Discover that starts accruing interest in 4/2019, and finally the other Discover.  Goal is to not pay any interest, so try to knock out the NFCU as soon as you can. 

 

 

Edit: I see you're applying for a mortgage shortly, sorry I missed that when I responded.  Some others might be helpful here on the ideal paydown strategy to maximize your short term credit scores.  There are certain utilization thresholds that will improve your score: 8.9%, 28.9%, 48.9%, 68.9% and 88.9%.  Perhaps you can start with getting everything below 28.9% and then work on getting the NFCU paid off. That said, I strongly recommend getting out of credit card debt before taking on a mortgage.  



Message 5 of 8
Community Leader
Senior Contributor

Re: Need help determining order of payoff!

I'd put the money toward the spouse with the lower scores.

Message 6 of 8
Regular Contributor

Re: Need help determining order of payoff!

I'd focus on the card that is charging interest. Put $1000 on your husbands Discover (since the promo is up in April, you won't get it paid off by then with just minimum payments) and $1000 on the NFCU.

Currently rebuilding:
1/18 -
7/19 -

Message 7 of 8
Established Contributor

Re: Need help determining order of payoff!

With Heaven's reply. Your lowest "middle mortgage score", not FICO 8 scores, between both applicants will be the determining factor of interest rate (providing that DTI, income and all others factors meet criteria). 

 

If yours is the lowest, apply it to the highest utilization card. If husband's, apply it to his card. 

Message 8 of 8
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