Help! Pif or not.

[Chula7]

Hello,

     I need some advice on whether or not to pif all CC's (less one:Kay Jeweler's), or just make monthly payments. Here is a quick summary:

Total available revolving: $17250

Credit Cards: 8, 6 with balances:

1)Hooter's:limit $300, balance $274

2)Orchard Bank:limit $300, balance $315

3)Capital One:limit $750, balance $878

4)Capital One:limit $500, balance $485

5)Kay Jeweler's:limit $5000, balance $4227

6)Fingerhut:limit $400, balance $460

7)JB Robinson:limit $5000, balance $0

8)Jared Jeweler's:limit $5000, balance $0

I am currently @ 38% overall utilization, but my individual is extremely high. Between opening most accounts (6 total over 6 months), my Scores went from 659-662 to 605-616. They were 618-640 before I maxed out my cards, I was at 8% individual utilization. Also, fyi: I have 6 installment loans, 4 Sallie Mae Student Loans, 1 MCU auto loan and 1 MCU personal loan. I am aware I should have 1/2 or less of my tl's reporting, and I only have the ability to pif all cards with balances, except Kay Jeweler's. If I pif all except Kays, it will bring my overall util down to 25%, however the individual util on the card will still be @ 85%. I need to bring my scores back up, therefore, I need to know whether it would help to have 7 cards @ 0% and 1@ 85%, or just wait until I can pif all, etc. Thank You.

[laz98]

i would pay everything except kay.  then you can work on the kay card without worrying about the interest accumulating on your other cards.  good luck!

[Chula7]

Thanks, that's what I figured! I am trying to get my points back. Do you think I should recover some of them since I will be @ 25% overall UTIL? I used the simulator, and it shows a 15-65 point increase. What a wide range. Thanks.

Message Edited by Chula7 on 02-19-2010 08:53 AM

[laz98]

you'll definitely get some, but it's hard to say how many.  at least you won't be paying as much interest! 

[Chula7]

I'll definitely save on interest! I've only been paying interest for 2 months though, these were recently maxed. Thank You for your help..

[Anonymous]

1)      If you can pay everyone except Kay Jeweler’s, then you have at least $2,412 dollars.

2)      If you have (and only have) $2,412, then I’d like to see you stash $1,000 away so you don’t have to borrow money the next time you need something.  If you do that, you will have $1,412 to spend on your bills.

3)      I would immediately pay off Hooter’s, Orchard Bank, and Finger hut (debt from smallest to largest).  That should cost you $1,049 and leave you with another $363 to spend on your debt.

4)   Next, I would pay some towards each of your capital one bills.  I would send $153 to capital one (with the $750 limit) to get your balance $25 under your limit.  Then, I would send the remainder to the other capital one bill.

[Chula7]

Thank You, however I do know enough to know that snowballing them will not boost my score as fast. I have the money to pay all except Kays. and I will not need to borrow any money one way or another (I can comfortably pay these without touching any of my paychecks) since I am using funds I have saved. Also, I have an additional $2700 saved, but do not see the point of paying down Kay's if I cannot pif. I did learn that much from Haulingthescoreup in the past. I doubt she would stear me wrong. However, do you think I would benefit from paying Kays 1/2 of what I owe in addition to pif all other cards? What is your experience with Fico? Thanks.

Message Edited by Chula7 on 02-19-2010 11:24 AM

Message Edited by Chula7 on 02-19-2010 11:27 AM

Message Edited by Chula7 on 02-19-2010 11:30 AM

Message Edited by Chula7 on 02-19-2010 11:32 AM

[Anonymous]

Some may say that paying Kay’s balance to 49% or less of your credit line may put you into a better tier, but how much evidence there is for that, I do not know.

[Chula7]

That's what I figured. I will stick with my original plan, as well as the advice I have received, and that is pif all except Kays. Thx.

Message Edited by Chula7 on 02-19-2010 11:56 AM

[haulingthescoreup]

But then go ahead and knock off the Kay's.