Reduce usage with CC

[BAB_Bryan]

I purchased a home in June (5.625% and 5% down).  I was originally approved for 3% down.  After all the removal of disputes etc, it dropped me to a 633 mid when I closed which caused the PMI, Interest rate and down payment to increase.  That being said, I had 3 collections at the time and those are now deleted.  The extra 2% to close was not in the original budget so I paid bills with CC and then paid minimums.  I am now trying to get back to a 680 or 700 (per my mortgage broker) Mid Mortgage so I can refi and save ~$700 a month which I think is very doable with the collections completely gone.  We purchased the home under value by about $35K so a re-appraisal would let me refi at 10% equity which is a big deal.  I need to pay down all my CC so they report under 10%, but I am a bit tight on cash until next paycheck.  We all know the drill.

I have started the process and now have two that were slightly over the limit reporting at 0% and 1%.  I got 18 points (FICO 8) of those 2!!  I would like to take a cash advance from the ones I just paid off and pay the next cards due this thur and next monday, but my cash advance limit is not large enough even though my credit line is.  I dont care about fees at this time as I am trying to buy score to drop the mortgage substantially.

Any ideas on how I can get the cash with a POS purchase to use to pay the other cards?  I know the old joke "may I pay my visa with my mastercard?", but that is what I am trying to accomplish.

Any thoughts would be appreciated.

[Remedios]

Which cards do you have?

Some allow it, but the amount usually limited. If you have cards that allow BT funds deposited to your account (such as Discover) that might be a better option. 

Also, how much money do you need? 

[Jnbmom]

I don't understand why you would want to take a cash advance from your newly paid off cards and then turn around and pay off your other cards, you are basically just moving debt around. Your utilization will virtually stay the same and you will end up paying out more with cash advance terms?

[Remedios]

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@Jnbmom wrote:

I don't understand why you would want to take a cash advance from your newly paid off cards and then turn around and pay off your other cards, you are basically just moving debt around. Your utilization will virtually stay the same and you will end up paying out more with cash advance terms?

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I think OP is planing on paying one set of cards before the second one reports again. Mid month debt shuffle. 

It's doable, depending on which cards they have. 

[BAB_Bryan]

$1400.  I am trying to pay down First Premier so they will report under 10% when the statement closes.

[BAB_Bryan]

Correct.  I paid two cards to 0% and 1% and they have reported.  I got 18 points on Experian FICO 8.  EX and TU have not reported yet but the statement is closed so they will tomorrow or wed.  I want to pay the next two card to less than 10% before they report.  By my next paycheck, I will be able to pay them all back off, but it will be too late for August reporting.  I will have to wait a whole additional month to execute my plan.

I think I can do it with visa gift cards.  Costs about $7 per $200 card, but that is a small price to pay to get myself ready to refi and net $700 a month in mort savings.

Any other thoughts?

[Remedios]

I don't want to sound insensitive, so an apology in advance if it sounds like it, but as a new homeowner, you will have a lot of expenses. Do you have any savings you could use? 

I mean, it could work, but at the same time, if $1400 creates a need for cash advance or needing to resort to GC purchases, I think it's a risky move. 

If buying a home wiped you out completely, that's a whole separate issue. 

Just one more emergency between now and payday could create a whole another debt cycle for you

Is there a family member you could borrow money from if it's truly only for a couple of weeks? Local CU for short term loan? 

[BAB_Bryan]

Dont worry about the insensitive.  I have a annuity with a very steep penalty for withdrawal.  I also have a retirement plan with the same issue.  My bank does not do LOC against annuities.  I am looking for a two week short term solution.  I catch back up on saving $750 a paycheck starting with my next paycheck.  I was planning on paying 3% down - not 5%, so I am in catch up mode for a 2 month period.  I also dont want another loan on my credit when I go to refi my house next month and I am not going to do a predator lender.

[Remedios]

If you have Discover, you can try doing it as a BT to your account. 

Some lenders get a little twitchy when it comes to purchasing cash equivalents, so which cards are planning on using to buy gift cards?  If you're using cards with no rewards attached to them, gift cards are usually not an issue 

[BAB_Bryan]

I was planning on using Credit One which has no travel or similar benefits.  I will pay my Discover next paycheck with cash, but it is not open now.