Utilization moves to Improve my Score

[Anonymous]

What about your Lowes card limit?  You left that out.

[armywifelong03]

$2,000. We opened it for a specific purpose and haven't used it since.

[Anonymous]

Ok, here we go.  The payments on what I recommend do not have monthly interest accounted for so your payments would be slightly higher than what I post.

Your current total UTI is 67.6%(67590/100,500) so you would need to pay it down to $49,144.50($18,445.50) to get a scoring increase(48.9%).

The first thing I would do is some of your creditors do a soft inquiry for a CLI.  I would try to get a limit increase on every card I could and if you do, that would reduce the amount you would have to pay to raise your scores the most.  If you get denied, so what.  You're in the same boat.

I would get the 3 maxed cards down to 68.9%

NFCU 24,950/27,000 you need to pay $6,347

NFCU 13,940/14,000 you need to pay $4,294

USAA 14,000/15,000 you need to pay $3,665

CS 7,000/10,000 you need to pay $111

Total so far $14,417 and no individual cards over 68.9%

So for you to bring your total UTI down to next scoring threshold you have $4,028.50 left to spend.  Mortgage scores are sensitive to the number of accounts with balances and currently you have 6/11 accounts with balances.  I would use $2,000 to pay off (2,000/7,200).  This would reduce the # of accounts with balances to under 50%.  You have $2,028.50 left to spend before your total UTI would give you a score boost.  Put it anywhere you want because I don't feel it will matter.

I feel this will give you the best scoring boost.  It is what "I" would do.  Hopefully this gives you some ideas.  Good luck!

[SouthJamaica]

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@armywifelong03 wrote:

Hi all!  I am looking for some advice on how we can get the most bang for our bucks on paying down utilization.  We are on the middle of building a house and really want to get my utilization down to get a better rate at closing in August.  

How can we approach this and get the most bang for our buck? 

Additional info: zero negative remarks, scores 690 and above

Thanks in advance!

Plan to get CC Utilization down
Cards at 0%
Lowe’s
JcPenneys
Capital One Quiksilver
Amex Hilton Honors
Nebraska Furniture Mart

27%
Military Star Card $2000/$7200

Below 75%
Shop Your Way MasterCard $5700/9400 (I hate this card but don’t want to close it before closing)
Chase Sapphire $7000/$10,000

Over 75%
NFCU $24,950/$27,000
NFCU $13,940/$14,000
USAA Amex $14,000/$15,000

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With $20k available you should pay

$9400 toward first NFCU card

$5800 toward second NFCU card

$4800 toward USAA Amex

[seattletravels]

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@SouthJamaica wrote:

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@armywifelong03 wrote:

Hi all!  I am looking for some advice on how we can get the most bang for our bucks on paying down utilization.  We are on the middle of building a house and really want to get my utilization down to get a better rate at closing in August.  

How can we approach this and get the most bang for our buck? 

Additional info: zero negative remarks, scores 690 and above

Thanks in advance!

Plan to get CC Utilization down
Cards at 0%
Lowe’s
JcPenneys
Capital One Quiksilver
Amex Hilton Honors
Nebraska Furniture Mart

27%
Military Star Card $2000/$7200

Below 75%
Shop Your Way MasterCard $5700/9400 (I hate this card but don’t want to close it before closing)
Chase Sapphire $7000/$10,000

Over 75%
NFCU $24,950/$27,000
NFCU $13,940/$14,000
USAA Amex $14,000/$15,000

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With $20k available you should pay

$9400 toward first NFCU card

$5800 toward second NFCU card

$4800 toward USAA Amex

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Honestly,  I'd probably pay off either the USAA or 2nd NFCU and put the rest of the $20K on the other. Next month I'd take the money that I had been using for min payment on the paid off card and throw it at whichever is left until its paid off and then move all those payments to the first NFCU card.

Alternatively,  you could put it all toward the first NFCU but you'd need to calculate which way would save the most interest. 

[armywifelong03]

Thank you all so much!  I truly appreciate it!

[RSX]

after this paydown step, and after your mortgage closes, you should get a personal loan to finish off the rest

currently you have $67,700 at blended 18% - which is costing you $1015 in interest per month

after the $15-20K paydown - you will still have $50k at this rate - which will be costing you $780 per month

even gettin a loan at 9% would drop the monthly int by half - which will be huge

[armywifelong03]

Thank you!  We are planning to go crazy and attack the debt once we close and are done.  We have a hefty chunk of monthly residual income, so that's our commitment going forward. We would love to do that right now, but, for obvious reasons, want to hold onto cash for the time being. 

[armywifelong03]

Hi all!  First, thank you for your advice.  

Second, another question.  Do I do this over time, like the next two months or just one swift move?  

[RSX]

one swift move

they are different companies and different statement dates - so even if you do all the payments in one day, it will take a month or so for everything to report - so the sooner the better