Lanah, leave the SL alone. It won't help your score by one point to pay it down "a little", but it will hurt your pocket book. Your $ are best spent paying down revolving debt and saving for housing expenses.
Starting Score: 469
Current Score: 819
Goal Score: 850
Highest Scores: EQ 850 EX 849 TU 850
Take the myFICO Fitness Challenge
Starting Score: 469Current Score: 819
Goal Score: 850
Highest Scores: EQ 850 EX 849 TU 850
Take the myFICO Fitness Challenge
Yep, they're looking at your fixed monthly payments, not so much total debt. Paying a chunk of your SL's won't lower your monthly payments, so IN THIS SCENARIO, there's no advantage in doing so. And student loans and other installment loans aren't included in the util numbers we kick around, which are revolving (= credit card) util.
Any CC's with relatively small balances, zero them out, and then go after the remainder, with a goal of getting each under (not at) 50%. At that point, you can go with whichever tactic makes the most sense to you.
If your remaining util is still uncomfortably high, consider a part-time job! Mickey D's hires high-schoolers out for the summer for the 6 a.m. drive-through, but they tend to flake out on them, so there's one opportunity there. Any extra income you get now could go straight to your CC debt. Sell chubby people hash browns to improve your future.
You will be astonished at the score improvement you get when you're in control of your revolving util, especially since yours is currently so high.
Any CC's with relatively small balances, zero them out, and then go after the remainder, with a goal of getting each under (not at) 50%. At that point, you can go with whichever tactic makes the most sense to you.
If your remaining util is still uncomfortably high, consider a part-time job! Mickey D's hires high-schoolers out for the summer for the 6 a.m. drive-through, but they tend to flake out on them, so there's one opportunity there. Any extra income you get now could go straight to your CC debt. Sell chubby people hash browns to improve your future.
You will be astonished at the score improvement you get when you're in control of your revolving util, especially since yours is currently so high.
@marty56 wrote:
@haulingthescoreup wrote:
You will be astonished at the score improvement you get when you're in control of your revolving util, especially since yours is currently so high.Control is the name of the game.Right before I entered DMP and some many CCCs maxed out I felt like and did loose control over them. Now that I have only 3 CCCs and usually I only have one report a balance I finally fell that I control them and me credit. When you do finally get control (and you will) it feels wonderful.
Marty, so true. This is one of the reasons why I won't have more than five revolving accounts. It is hard work keeping all of those cards "happy".
Starting Score: 469Current Score: 819
Goal Score: 850
Highest Scores: EQ 850 EX 849 TU 850
Take the myFICO Fitness Challenge
lanah wrote:I'm 23 and my scores are horrible mainely because of Utilization. I have four cards that are maxed out. The balances are 1800, 900, 800 and 300. I figured out that I have about 600 dollars a month to take down these cards. SHould i do what orman says and pay the highest interest one off first and pay minimum on the rest? I've been told that this will save me money but won't lower my score until most of them are paid off. I've been told that it's better to try to pay all of them down to 60% Utilization and then try to get them ALL down to 30% and then 10% and tht the consistant lower balances on ALL of my cards will help my score better. My current scores are 603 experian, 611 Eq, 578 Transunion. My goal is to first get them all to 620 then to 660 as quick as possible, hopefully in a year.The other problem I have is that I'm an AU on two of my mom's cards. This helps sometimes but at times that she takes vacations it hurts. The limits on those are 5000 and 17000. She maxes them out sometimes but pays them off within a month or two. Right now they are helping but I know the summer is comingand I fear they will hurt. Should i get her to take my name off those cards? If so will they come off of My credit report without me doing anything or will I have to send in a dispute.
other things that are on my report is an College loan with a balance of 22700, no late payments at all for 3 years. A car loan that is now paid off but had late payments almost two years ago. and A personal loan for 5000 that i was never late on.Sorry for the long email and thanks in advance for your help.5/16/08 603 Ex, 611 EQ, 578 TR, Goal All 620 in 3 months,, 660 in a year.
Message Edited by lanah on 05-16-2008 08:40 AM
This may be an oversite by all responding or by me but have you tried to GW the late payment on the car payment that was late? I know it is only 10% of your score but 10% of 850 is still 85 and what ever your loosing out of those 85 points could come in handy when it come to crunch time for your 660. You have 6 months of time to gw, gw, gw untill it may disappear.
Also you never metioned what the 4 credit card companies are.
I ask this because If you can get cli on any depending on the age of the cards, and if any of the companies will give a cli without a hard pull, this two could have an impact on util early without having to pay down as quickly.
I aggree with the rest pay off all revolving dept before taking on that mortgage though. SL can be tackled as well AFTER revolving dept is wiped out.
1 more note: on the lowest interest rate card shouldn't she show less than 1% util as her only ballance on only 1 out of the 4 cards. for another tactic of slight fico bump???