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Closed Barclay Card with Balance - Debt Paydown Strategy Help

BaileyDog1
New Member

Closed Barclay Card with Balance - Debt Paydown Strategy Help

Hey all first post looking for a little bit of advise on strategy in paying down cards.

 

Backstory is that I started a business and life was tight for the last 4 years. Recently started a W2 job and looking to build a house using some land we own outright via a heloc. I plan on using part of this HELOC to refinance my CC debt in order to pay it off faster (one particular lender has an intro rate of 0%, although I won't get all of it, I'll get most of it paid off).

 

Had a Barclay card (Apple finance originally) close after a handful of rejected payments with a balance of 99%. Have been paying it down every month now at 61%. Problem is here is it only reports the balance not utilization so combined with my other overall utilization (76% now, down from 98%). 

 

Need some advise on strategy to get this to pay down faster. I have an open Paypal Credit line Ive thought about using in small chunks as an alternate way to Balance transfer. Theoretically my utilization will improve even. 

 

Most recent Fico 8 scores are 657 (Exp) 670 (Equifax) 639 (TU) showing a 111-116% utilization (although also acknowledges 76-80% on open credit) with 4 30-day late payments, 1 inquiry, no bankrupcies chargeoffs foreclosure collections. Only negatives are high utilization (76% on open credit, 111-116% on open+closed credit), and 4 late payments on open cards, 6 on Barclaycard all 30day. No late payments on any installments loans (student & vehicle).

 

Sent numerous goodwill letters on my own and with Lexington with no luck over the last year using either method to remove late payments).

 

Thanks everyone really appreciate any advice! Really need a credit boost to get a decent interest rate in order to refinance. I appreciate it!

Message 1 of 11
10 REPLIES 10
FireMedic1
Community Leader
Super Contributor

Re: Closed Barclay Card with Balance - Debt Paydown Strategy Help


@BaileyDog1 wrote:

Hey all first post looking for a little bit of advise on strategy in paying down cards.

 

Backstory is that I started a business and life was tight for the last 4 years. Recently started a W2 job and looking to build a house using some land we own outright via a heloc. I plan on using part of this HELOC to refinance my CC debt in order to pay it off faster (one particular lender has an intro rate of 0%, although I won't get all of it, I'll get most of it paid off).

 

Had a Barclay card (Apple finance originally) close after a handful of rejected payments with a balance of 99%. Have been paying it down every month now at 61%. Problem is here is it only reports the balance not utilization so combined with my other overall utilization (76% now, down from 98%). 

 

Need some advise on strategy to get this to pay down faster. I have an open Paypal Credit line Ive thought about using in small chunks as an alternate way to Balance transfer. Theoretically my utilization will improve even. 

 

Most recent Fico 8 scores are 657 (Exp) 670 (Equifax) 639 (TU) showing a 111-116% utilization (although also acknowledges 76-80% on open credit) with 4 30-day late payments, 1 inquiry, no bankrupcies chargeoffs foreclosure collections. Only negatives are high utilization (76% on open credit, 111-116% on open+closed credit), and 4 late payments on open cards, 6 on Barclaycard all 30day. No late payments on any installments loans (student & vehicle).

 

Sent numerous goodwill letters on my own and with Lexington with no luck over the last year using either method to remove late payments).

 

Thanks everyone really appreciate any advice! Really need a credit boost to get a decent interest rate in order to refinance. I appreciate it!


To have over 100% util showing . Do you have a charge off? Util is open and closed accounts combined. I can see the 80%, but not over 100%. Too bad you didnt come here sooner. LexLaw doesnt do anything but take your $. You dont use credit to pay credit unless they have some type of 0% APR for a set period of time. If its a much lower APR yes maybe. But it wont change the util %'s. Its just moving balances around. Use the HELOC to pay the debt off. Not refinance. Need a bit more clarity. zThe 2 different util %'s arent matching. Long as no CK stuff is in your post. But you listed FICO. List out the cards:

Name/Credit Line/ Balance APR

 





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 2 of 11
BaileyDog1
New Member

Re: Closed Barclay Card with Balance - Debt Paydown Strategy Help

Hey FireMedic thanks for the reply.

 

No charge offs. CK 637 (99% payment history, 84% util, 0 derogitory marks, credit age 10 years, 26 total accounts, 1 hard inq)

 

Good to know about LexLaw. I got frustrated trying on my own and though they might be able to help but its the 3rd month and Im not getting anywhere which is frustrating. I'll do more research here.

 

So the reason why I'd be tempted to use paypal credit is its 0% for 6 months on transactions over $99. My thought process here is I could chunk it out in 2-4 pieces to pay it off. My thought here is that this would be a faster way to get rid of the balance on that closed card. Then I would have a higher chance at a better HELOC interest rate (on top of that intro rate for 6 months) where I could get most of these balances gone in the next 6 months with this new job.

 

Open Tradelines:

Cap1 Quicksilver - 4500 limit / 4000 balance / 21.5%

Cap1 Cabelas - 6000 limit / 5470 balance / 20%

BOA Cash Rewards - 5200 limit / 4750 balance / 16%

Amazon Store Card - 1820 limit / 1300 balance / 28%

Paypal Credit - 2300 limit / 0 balance / 0% APR if paid in 6 months (this is the new inquiry btw)

 

Closed Tradeline:

Barclaycard (Previously Apple Financing) - Previously 9300 limit / closed at 9200 / 5600 current balance) / 24%

 

I can send you a PM of a screenshot comparing my three reports if that easier about the util rate. I did a free trial of the experian app. Thanks!!

Message 3 of 11
FireMedic1
Community Leader
Super Contributor

Re: Closed Barclay Card with Balance - Debt Paydown Strategy Help

This makes more sense. Forget what CK says. Its only good to keep track of your 2 CRA reports and any action that may happen. You can't transfer a balance from another card to your PayPal Credit account. PayPal Credit does not have a balance transfer feature and vice versa customers cannot transfer a PayPal Credit balance to another card. Yes cancel LexLaw. That $ can go to that card. Now it may sound weird. If you need extra $ to pay that card debt. You can donate your plasma. 2 visits a week for 30-40mins and can net you 450-600 a month or more. Check your local centers. Some have >$1000.00 for being a new donor. Your just going to have to find ways to cut back on some items. Once that done. You'll have 15g's to pay off then. But when that happens. Do not use your cards until its paid. Practice AZEO. And every 6 months. Put something on a card thats PIF then pay it off to show usage. This will pull you away from swipe fever. Never to go there again. Best of luck!





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 4 of 11
FireMedic1
Community Leader
Super Contributor

Re: Closed Barclay Card with Balance - Debt Paydown Strategy Help


@FireMedic1 wrote:

This makes more sense. Forget what CK says. Its only good to keep track of your 2 CRA reports and any action that may happen. You can't transfer a balance from another card to your PayPal Credit account. PayPal Credit does not have a balance transfer feature and vice versa customers cannot transfer a PayPal Credit balance to another card. Yes cancel LexLaw. That $ can go to that card. Now it may sound weird. If you need extra $ to pay that card debt. You can donate your plasma. 2 visits a week for 30-40mins and can net you 450-600 a month or more. Check your local centers. Some have >$1000.00 for being a new donor. Your just going to have to find ways to cut back on some items. Once that done. You'll have 15g's to pay off then. But when that happens. Do not use your cards until its paid. Practice AZEO. And every 6 months. Put something on a card thats PIF then pay it off to show usage. This will pull you away from swipe fever. Never to go there again. Best of luck!


You can get your free EX FICO at Discover Scorecard to keep an eye on your progress. Dont have to be a cardmember. What were the GW letters for?





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 5 of 11
BaileyDog1
New Member

Re: Closed Barclay Card with Balance - Debt Paydown Strategy Help

The only reason I use CK is they're good about flagging updates to reports mostly (remarks, inquiries, etc). Agree about PPC - the only way I can use it is strip cash off of it via sending to someone else and giving it back to me so I can redeposit and then make a payment for that amount, although I realize its not designed to work like that but it is technically possible. Since this is the case - is it best to try to get the closed Barclay card paid off first? While continueing to make payments on the open cards as well just not as large. I feel like this is the only way I'll be able to get my utilization to go below 100% and the late payments to be removed.

 

Believe it or not I am good with money a lot of these charges were businses related and things just didn't ever get moving really. I used to be a donor so I'll reconsider that. Also did extra withholdings on W2, IRA contributions, and an education credit at the state level to hopefully get a $5-10k tax return (guarentee it will be at least $5k). Also hopeful for a $1-2k bonus at EOY. Plus paychecks, I think I can get care of this fairly quicky and move on! Smiley Happy

Message 6 of 11
BaileyDog1
New Member

Re: Closed Barclay Card with Balance - Debt Paydown Strategy Help

I will check that out! I had a Discover card that was closed from inactivity ($500) back in college. The goodwill letters are all to remove 30-day late payments, with no luck. Any advise on this? I know once I pay off balances they're all likely to comply with my requests. I keep saying I'm looking to apply for a HELOC (this was in August lol, all of this has really taken a lot longer than I realized and I feel like I haven't got far) but they always say we are required to report accurate information. It was always around 30-35 days that I paid nontheless. Thank you for the help Smiley Very Happy

Message 7 of 11
FireMedic1
Community Leader
Super Contributor

Re: Closed Barclay Card with Balance - Debt Paydown Strategy Help

Yes pay that 100% card down and get that card in the past. It still counts against yout aggregate util. But the open cards are still high util too. The main objective is get outa debt. And all the interest your paying. Then you could start the Snowball Method. Its like a rolling pay down. The debt snowball method works where you pay off debt in order of smallest to largest, gaining momentum as you knock out each remaining balance. When the smallest debt is paid in full, you roll the minimum payment you were making on that debt into the next-smallest debt payment you've been making. So more $ for the next one.  Bye the time you get to the last one. Then it goes by quick. If GW works it will be after they are $0 balance.

 

I put it this was so you wont have to get a 15g loan. Its just me. Dont get credit to pay off credit.





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 8 of 11
BaileyDog1
New Member

Re: Closed Barclay Card with Balance - Debt Paydown Strategy Help

Understood. Thank you for the advice! I really appreciate it. Literally been throwing my paychecks at debt but hey gotta take the bad with the good right?

 

@FireMedic1 do you have any thoughts on using a spouses ability to grant an authorized user? If this helps it so we can refinance at a good interest rate, the faster we get the HELOC the faster it gets paid off.

Message 9 of 11
FireMedic1
Community Leader
Super Contributor

Re: Closed Barclay Card with Balance - Debt Paydown Strategy Help

If you doing a joint HELOC app. And the util is low, real low. It cant hurt. Your credit is a mirror of that cards util.





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 10 of 11
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