@Anonymous wrote:Hi everyone!
I am new to this forum and need some advice!
I have been blessed with a sum of money I am receiveing and want to pay off all my debt (except Student Loans) to increase my FICO score which currently sits at 651. I have been told multiple ways to go about this to get the most boost out of my score (Trying to buy a house by Jan/Feb next year) but many things I have been told doesn't make sense (such as "Don't just pay everything off" or "get a Debt Consolidation loan and pay everything off over 10 months to get points for payment on time").
What debt I have is below and I will have enough money to wipe all my debt clean....
--Discover Card APR 24% Balance $1,045 (Limit $1,000) Opened 12/2018
--Wayfair Acct APR 28.5% (Deferred Interest if Paid in Full by 1/7/21) Balance $1318 Opened 7/2019 Credit Line?
--Capitol One CC APR 26% Balance $500 (Limit $500) Opened 8/2019
--Installment Loan APR 115.12% Balance $3,074
--Installment Loan APR 159.88 Balance $1800
--Installment Loan $1,100
--Bank Loan APR 13.5% Balance $950
--Bank Loan #1 APR 15% Balance $3,369
--Bank Loan #2 APR 36% Balance $3,488
--Bank Loan #3 APR 16.7% Balance $1,660
--CU VISA APR 12% Balance $3,537 (Limit 3,500) Opened 9/2014
--Car Loan APR 6.1% Balance 13,623 Balance will be paid off 12/2023
--Installment Loan APR 24% Balance $14,230
How can I get the most point boost and at the same time knock out these debts (especialy the ones I am paying astronomical Interest on)
Any help will be appreciated...
I also have 8 Inquiries on my report and assume that is hurting me some...but no late payments, no colections, no deliquincies.
Thanks in advance!
Welcome @Anonymous
The easy part is get those cards paid off. Tackle the over the limit and maxed out cards first before they balance chase you or AA. Now all the loans you can payoff. Always keep 1 installemrnt open like your auto loan. Once all the cards are paid down. Keep one card reporting <8.9% each month or as we say AZEO. All Zero Except One. Never have all credit cards report $0 balance. And please dont ever get yourself in this mess for a better word again. If you cant pay it. Dont charge it. Keep us updated on the score changes. Now its time to go after the debts. Good Luck!
@Anonymous wrote:Oh, one more quick question....
Should I only keep my oldest Credit Card and pay off/cancel the other 3??...Discover, Wayfair and Capitol One as I am pretty sure they have Annual Fees on those and I won't be using them since I will just keep the one card at less than 8.9%......
Any that have an annual fee. C-Ya! But the more accounts you have looks like a thicker file. Yes keep the oldest card open. Once you close whichever ones you chose to keep. They will still count with your AAOA's for up to 10yrs. No harm. You can use your cards that you keep all you want. As long as you can pay them all down except one. Yes please keep us updated. This will be interesting to see what occures. Good Luck!