Fico Score and Debt Reduction Project to get to 800 club range

[reyna]

I would appreciate any member feedback in the following project to get closer to 800 club. Pro's and Con's would be helpful and a review of the accuracy of the project.

Situation brief: Current credit card debt is $5,200, minimum credit card payments total $571 per month. Income is sufficient to meet current obligations with very little manuvering room. Current FICO 8 scores EQ 657 TU 570 EX 660, current Utilization  25%, inquiries in last 12 months  EQ 2 TU 2 EX 3. Total Credit Limit is $20,800

Just got approved for the Discover It card with $10K SL, 3% balance Transfer fee and 0% APR for first 15 months (variable APR is 16.24%-27% after intro period). I believe the standard Discover It monthly payment is $35 or 2% of balance.

Using balance transfer to move all balances to new Dicover It card would chamge the  minimum payment to $117/mo., total credit card limit would increase to $30,800, Utilization drops to17%. Projected score changes =10 points. Payoff schedule at the new Discover It minimum payment schedule would be November 2026.

To take advantage of new Discover It acquisition offering a 3% balance transfer fee, no annual fee and 0% APR for 15 months......I believe an extra $350 per month for the 0% APR intro period  (using snowball technique) would get the debt paid down by April 2024.

Can someone check my calculations please

[FireMedic1]

Welcome @reyna 

Not a bad plan to save money. Comes down to if you cant pay it. Dont charge it. Use your other cards to get the perks like a debit card. PIF before the statement date. Work on gettting below 8% on aggregate once its all moved on the Disco card. 800 is for folks with oldest card 20-25 yrs and AoAA 7+ yrs. avg +/-.

If you can give the age metrics you have. Might be able to see where you sit. And any baddies from the past.

[reyna]

I believe my AAofA is 6 years and oldest account is 9 years and 4 months.

No baddies reporting. Last collection fell off 2 months ago across the board

[FireMedic1]

Thats great on the baddie. Takes time and (credit) age is your best friend. You'll get there. Like wine. Finer with time. It can be done.

[reyna]

Today, I finally received the Discover It cards in themail with the new 10K limit. My plan was to balance transfer my open account to Discover to make 1 single payment every month. However, that would mean my Discover account would begin reporting with a 56% CCU. Furthermore, I just received the approval of the Upgrade card with a $3K starting line and a $400 sign up bonus tied to a debit account.

Now the plan could change as I believe Upgrade reports as a personal line of credit or a loan to CRA. If this is true, then I could take the whole Upgrade loan as a draw, a small score hit for upgrade utilization and new loan and the balance of my accounts would go to Discover under a balance transfer. That would put the discover card at around 35% utilization and with a zero % APR for 15 months, I don't see many con's versus the traditionalbalance transfer risks.

Any ipinions or thoughts on using the new Upgrade loan with the balance transfer from Discover to consolidate all my accounts into 2 payments. Upgrade payment wouls be $128/ mo. and Discover would be $120 / mo. versus the original monthly CC payments totalling $515 / mo.

[FireMedic1]

We say finaces over FICO. Transfer the balances for the 0% APR. Money saved. But it must be paid before it runs out or here comes trailing interest. Hold off on applying for anymore credit until you have control on what is owed. More credit doesnt help present credit. Adding accounts lower age metrics and that will stop the 800 club range. Once all is paid down. If you cant pay it. Dont charge it. Balances are for emergencies so no interest is paid.