@reno55 wrote:
Here are the cards and interest rates with balances and limits:
Card/Bal/Limit/Rate
SST/$1358/$1500/28.74%
HSBC /$1322 /$1250/27.74%
Cap One/$1425/$1500/24.9%
Ikea/$303/$500/ ? <--- this is a GEMB store card, and therefore probably high APR
JCPenney/$508/$850/21%
HSBC/$776/$850/15.44%
Discover/$179/$300/14.99%
Cap One/$1892/$2000/14.65%
(rearranged to put in descending APR order)
If you don't have an immediate need to get your scores up now, I'd go with financial sense, except for the over-the-limit out card: first get that HSBC card down to about $1050 or so, or lower. Then pay the highest interest card off first, while making minimum payments plus $10-20 extra on the others. When the first one is killed off, take that payment, add it to what you've been paying on the next highest APR card, and pay that one off.
If you need a morale boost, and you have extra cash, you can knock off the low-ish balance cards (Discover and JCPenney). But I would get the first two paid off first.
The one thing to worry about is that so many are maxed-out (85% of credit limit or higher), you might see creditors start dropping your CL's as you make payments. This is called "chasing the balance," and it's never good. Nothing you can do about it now, though --just put everything you've got into getting out of debt.
On the non-store card, use each one once every 2-3 months for a milkshake to keep it alive. This is especially important with the HSBC cards, which will close them down fast for inactivity. But watch your online account, and the moment the $1.79 posts, pay it off online. Don't wait for the statement to come, and don't reduce the amount that you've committed to paying.
Good luck!
edit to add: sorry, lost track of how much cash you have available. Get the over-the-limit card down to less than 50% of CL, or $600 or so. If you can, then get everything under (not at) 50%, and keep going from there.
Message Edited by haulingthescoreup on
09-08-2008 10:32 AM
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
