Advice on UTILIZATION Desperately needed !!!

[Anonymous]

Hi all!  So as a disclaimer -- DON'T JUDGE LOL!  I am here to get some input on my scores, and paying down my cards.  Presently, I sit at the following:  498 EQ, 515 TU, 525 EX.  Horrid, I know... but I hit a rough spot due to job loss and finally secured a great paying nursing job here in L.A.  Below is my current UTIL on my cards and revolving accounts:

CareCredit:  $1600 / $3000 CL

Barclay Visa Apple:  $2940 / $3000 CL

CreditOne:  $299 / $400 CL

NFCU Secured:  $5 / $700 CL  (Recently opened to help UTIL)

FingerHut Revolving:  $200 / $400 CL

So, my plan is to pay them down considerably -- goal is to get my CreditOne down to $20 (reporting), Barclay to $1500 (reporting), NFCU staying very low and FingerHut paid to $0.00, all within the month.  Will I be looking at a considerable score boost if I pay these all down substantially?  I know that my UTIL is whats killing my scores, as there are no recent baddies, and collections have aged off or been paid, but for one.  ANY and ALL advice would be great.  A friend was in a simialr spot, paid his cards all down to about 25%, and his score literally went up 100 points in 30 days!!!  Please advise, credit oracles!

[Anonymous]

What are your APRs on each card? 

[Anonymous]

My APRs:

CareCredit:  0% for 18 months, 22.9% after (not until 2016)

Barclay:   24.9%

CreditOne:  18.9%

FingerHut:  Unknown

NFCU:  14.9%

[Anonymous]

Util, and especially high Util can play a huge role in scores. I spent years with my Util over 50%, depending on when I made a payment vs report date, I always PIF just never worried about report date. My scores ranged around 650-680. I decided to do something about it prior to refinancing some loans. Last December I started paying just before report date, Util went down to around 1% by January. In February I refinanced the loans and my credit scores were all 750-780. Added some decent cards with good limits to keep my Util under 10% and my scores are staying in the 750+ range.

As for paying down cards, get the higher APR's paid off first, then use that interest saved to pay the others off. Unless you are trying to do some kind of loan or credit really fast pay the balances however it saves the most money.

[jamesdwi]

pay down your cards, garden for 6 months, NFCU will do wonders, only wish I could get in... they are amazing. 

get your score to 650's with a decent income they will give you a 5 digit CL  YMMV.

[Anonymous]

If these were mine I would pay Credit One off first, then Fingerhut and then Barclay and make at least 3x the min on Care Credit. 

[Anonymous]

Thanks all. I really like this advice. I think I will start with th highest APR as noted. Also -- NFCU I have heard amazing things about. People graduating secured cards in 6-12 months with huge limits !! So we shall see.

[Anonymous]

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@Anonymous wrote:

My APRs:

CareCredit:  0% for 18 months, 22.9% after (not until 2016)

Barclay:   24.9%

CreditOne:  18.9%

FingerHut:  Unknown

NFCU:  14.9%

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1. Pay minimum on everything

2. Put all remaining funds to cards in this order:

    a. Barclay

    b. Fingerhut

    c. CreditOne

    d. NFCU

    e. CareCredit

3. Once CreditOne is paid off, make the call to close their account.  They are predatory lending at it's finest.

4. Maintain low Util, PIF balances every month to avoid accruing interest

5. Enjoy benefits of better credit.

[Anonymous]

LOL! Thank you for the details.  I will do just that...though I must say I've had CreditOne since November 2014 and not a single issue, in fact, I seeminlgy get less interest charged than that damned Barclay. . whose Recon department is full of uptight, annoying rumps!  :-)  I'm hoping I BOOM with NFCU and in a year's time, am at a $10k credit line with them.  Then I'll SD all other cards

[Anonymous]

Focusing on your score right now is not the priority. Focus on paying your debts off. That will have a real, immediate, material impact on the amount of free money you have to spend and your score will naturally improve as you get your debt under control. Your goal is to pay all those cards off in full, and after that to pay your full statement balance every month and never, ever to pay another dime in credit card interest again.

That said, to answer your question that you asked:

You are showing a balance on ALL your cards. That is not good. Pay off at least two of them in full so that they report ZERO, and then sock drawer them and don't charge another dime on them. Don't close them. Just stick them in your sock drawer and let them report zero forevermore.

Obviously, ,do this while making minimum payments on all your other cards. Then focus on knocking down your balances starting with the highest APR and working down towards the lowest APR. Some of your cards are maxed out. As you bring those balances down  your score will improve.

At some point (maybe already now?) you will have a solid payment history and will be able to get a consolidation loan from NFCU or another lender. Talk to them. Find out if you qualify or if not what they need to see for you to qualify. Use the loan to pay off your highest balance card, it'll knock down the interest you pay a LOT, which will make it easier for yout o pay all the balances down.