Lots of cards- best way to pay (some) and have huge FICO increase?

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JoeQuimby
 
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Lots of cards- best way to pay (some) and have huge FICO increase?

Postby JoeQuimby » Sat Mar 22, 2014 11:22 pm

Hey-

So I'm in a bit of a bind and I'm trying to figure out the best strategy to raise my credit score as much and as fast as possible. I have about 18k in credit card debt spread across 7 different cards. The cards are as follows: as a nofe, I will be able to pay the promo cards off before the teaser rates expire.

1. A zero percent APR promo until the fall with a 6500 limit and a $6000 balance.
2. Another 0% APR until late fall witth a 3000 limit and a $2800 balance.
3. One more 0% APR promo until late summer with a $2800 balance.

4. A standard CC with a 2600 balance @ 15%, 5k limit
5. Another standard CC with a 2000 balance @ 15%, 5klimit
6. One more active card with a balance of 450 at 17%, limit 2k

There's another card, which was closed by the CC comany, with a $2300 balance at 23%. I REALLY would like to have this re-opened to increase my utilization. and remove the negative ding. Does anyone have any strategies/ideas for this?

I'm starting a small business, so cleaning up this mess is important, I may not borrow, but investors will obviously care, My FICO is 654 and I'd like to use the $8000 to raise that as much as possible- I'll either be borrowing or seeking investment in the next 1-3 monrhs,

I have $8000 to pay down what I can and I'm trying to figure out the best order/amount to do it. Should I pay odd the interest cards in full, leaving those accounts with 0% utilization, while leaving the promotional 0% cards at virtually 100% utilization, or spread everything out a bit?

So there it is! Any advice is welcome and appreciated,

Thanks-

Joe


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Snowman
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Postby Snowman » Sun Mar 23, 2014 3:24 pm

If I were you, I would personally knock off numbers 3-6, and then pay down #1-2. The others are going to hurt you since you have interest being added every month. The less debt you have, the better your scores will be. Ideally, you want to have under 10% utilization on one card, but at this point, that's what I would do and I wish you luck in getting the debt paid off. I myself have a little bit of debt, probably around 4k, but that's on 0% promo APR cards that I can easily pay off, but don't want to right now. Good luck!
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hwturner
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Postby hwturner » Wed Mar 26, 2014 4:15 pm

Man, I would knock out all the cards with interest rates first. After that, try and get all the cards below 80% utilization and THEN, apply the rest to the card with the least left on it. That will let you get a few cards to a zero balance and get another one really close to zero. Whatever is remaining will not accrue interest yet so you will make better progress on those. When the 0% offer expires, call all of your credit card companies to see if you can transfer those balances at 0%. You never know what could happen, especially if you have a PIF card you never use anymore.
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takeshi
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Postby takeshi » Thu Mar 27, 2014 8:24 am

JoeQuimby wrote:So I'm in a bit of a bind and I'm trying to figure out the best strategy to raise my credit score as much and as fast as possible. I have about 18k in credit card debt spread across 7 different cards.

Worrying about paying down your debt first. Then worry about your scores. Your scores will improve as your utilization drops.

I'd also suggest tackling higher interest first and then getting utilization down on the cards with 0%.

JoeQuimby wrote:There's another card, which was closed by the CC comany, with a $2300 balance at 23%. I REALLY would like to have this re-opened to increase my utilization. and remove the negative ding. Does anyone have any strategies/ideas for this?

All you can do is call and ask. Strategy always depends on the specifics of the situation. You need to address the concerns that led to the closure. Failing that, pay this one off first as it is probably killing your utilization.

Living&Learning
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Postby Living&Learning » Thu Apr 10, 2014 12:15 am

Hi,
I would definitely pay off 4-6 first. Why? To avoid interest. Next I would pay down either 2 or 3 to less than 30% utilization. This will increase your score, but to be honest you must do what is financially in your best interest. I understand that you want to start a business, but don't you want to go into this endeavor with your best foot forward? I do not know your complete financial situation but if it were me I would definitely give myself the time needed to pay off as much of my debts as possible. That may not be possible in only 1-3 months. Good Luck!

Kaiokenryu
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Postby Kaiokenryu » Thu Apr 10, 2014 11:27 pm

kill 1,2,3 & 6 by deadline since you say you can. .......eat the interest paid on others as cost of doing business with lender. Like Takeshi said....first things first: 1. Cashflow 2. Credit score. 3. Interest Payments. You can always have fabulous scores while paying interest. Check your scores and report after the first 4 are gone....

I'm thinking your scores will have jumped significantly.....and thus your confidence and motivation to lay a path of utter destruction to the remaining debt. :D

My $.02



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