I have $1,100 owed to Discover (about 28% APR) on a $3,300 line
I have $700 owed to UW credit union (about 16% APR) on a $1500 line
DCU approved me for $1,900 at 14% for 24 months. They will overnight a cheque to me via FedEx and I plan to pay off both cards completely.
My question is, how will getting these cards down to 0 and adding a small loan to my portfolio help me?
I also have a CreditBuilder loan with First Citizens (owe about $450 on a $1,000 loan) that I plan to pay off in the next month. Once this loan is paid off, the bank gives me the full $1000, and I would use that to make a nice payment on the personal loan.
I also have a car loan through DCU for about $11,700 that I just got in March after refinancing.
I also have about $82,000 (or so) in student loans that are currently in deferrment because I am a half time student.
645, Transunion, provided by Discover (3-17-19 was the pull)
649, Experian, provided by free Experian app (4-12-19 was date of update)
614, Equifax, according to a PenFed credit card denial this month
Yes my file is pretty thin.
The cards are only about 2 years old, but have been carrying balances pretty much the whole time. That Discover card at 28 percent sucks. I called threatening to cancel the card due to the large APR, they gave me 12 months at 0 percent till March 2020. That will help for future purchases at least.
I think paying them off and leaving them alone for a little bit can only help my score. The $700 out of $1500 is nearly 50 percent and the $1100 out of $3300 Discover card is about 33 percent.
The other 2 cards I have are brand new in 2019--both are at $0 out of $3000.
Should also add that I have about 12 or so Comenity cards and 2 Synchonory cards
Most of the Comenity cards are $500 or less limits, one is $1050 limit, another is $1130 limit. All are at 0 except one:
is at about $275/$1130
One Synchonory card is a $7,000 limit, the other is just $200.
Yeah I figure if I can get these two cards back at zero and avoid using them, I can see a score increase. I also am excited to pay off my creditBuilder loan and use that to pay back some of this small personal loan.
The personal loan has a monthly payment of $91 per month for 24 months, but I think I can get it paid off quicker than that. It sure beats the 28 percent APR that Discover is charging.
I paid off both credit cards in full. They will soon show 0 percent utilization.
Am excited to see a small boost in my score due to paying these off completely.
Also plan to payoff that CreditBuilder $1000 loan that has $450 left to pay on it. Use that $1000 to make a payment towards this new personal loan.
Let 1 card report 10 bucks a month. Zero'ed out cards you lose points.