I got started on what will be a LONG journey to pay down my debt. After getting my company bonus I could finally make a dent in paying down my credit cards - most were > 95% utilization - and come up with a real plan moving forward. I debated what the best way to approach it was but ultimately decided that completely paying off the cards with the highest interest rates first was the best route. My scores would get more of a bump if I had paid a little off each card to get every card below 89% utilization but felt like I needed to get rid of the super high interest rate cards as quick as possible and in the process lessen the amount needed for minimum payments. Once I pay off the trailing interest my utilization will be down to 69% and my minimum monthly payments will have been reduced by $665.
My strategy in paying them down was to pay just a little at a time to hopefully avoid any CLD. So far so good in this regard. However, as a result the cards I am paying off didn't all get to $0 before the March statements cut so I won't see any even minor score bumps until May most likely. After the statements cut showing $0 for the five cards I paid off I will consider a consolidation loan. The rate I am pre-qualed for right now (with 81% uti!) isn't ideal but it's still significantly better than all but one of my credit cards. I should even get a slightly better rate in June with my utilization slightly better.
Once my debt is consolidated into a loan and I am able to pay down my Citi Costco card (only card I'm not consolidating) my FICO 08 scores should jump as the rest of my profile is relatively clean. I am sure I am getting dinged a bit for 3 late payments (all over two years ago) but high utilization is really what is killing my scores. I'll then look to refinance in 6-12 months when my scores are back into the 700's (hopefully).
I'm excited to have been approved Apr 6 for a 35k personal loan from PenFed for 60 months @8.49% They pulled Experian and my credit score on Apr 5 per the letter sent was 738.
The funds deposited today and I have paid off 8 credit cards with an average %15.04 rate. Here's my previous balance/current balance/ CL and IR (which I won't have to be concerned with as I I'll be PIF going forward🎉🎉🎉)
Citi DC $7551.01/ $0/$17400 IR %15.24
Citi Costco $5816.25/ $0/$9400 IR %15.49
Citi CC $3660.41/ $0/$6500 IR %19.24
Discover $2616.91/ $0/$5700 IR %6.99 til 11/2022
Chase FF $2532.57/ $0/6600. IR %18.24
Credit Union Visa $4603.06 /$0/7500 IR %9.67
(closed by me 2017) Elan Platinum 1 $3643.93 /$0/ $6500 IR %21.24
(closed by me 2017) Elan Platinum 2 $1840.19 /$0/$8100. IR %19.24
Remaining CC debt
(closed by me 2017) PenFed Cash Rewards $11196.30 /$25000 IR %9.9
I want to wait for every bank to report before I update my scores in the siggy...anxious to see the effect 🙃
Hey all, I'm a bit late as I've been busy. My utilization is still high but I'm working really hard to lower it. Finally that stubborn child Equifax has hit 700. GL all and keep up the good work.
@MySunrise271 wrote:(closed by me 2017) PenFed Cash Rewards $11196.30 /$25000 IR %9.9
I'm curious why you closed a good 2% back card with a $25k CL and a 9.9 APR.
EQ8 809, TU8 790, EX8 797 as of May 11
@mgood wrote:
@MySunrise271 wrote:(closed by me 2017) PenFed Cash Rewards $11196.30 /$25000 IR %9.9
I'm curious why you closed a good 2% back card with a $25k CL and a 9.9 APR.
Back in 2017 I wasn't nearly as knowledgeable about how to use credit correctly (or manage money correctly). Overwhelmed with a job loss, debt across multiple cards and a hospital stay that resulted in two late payments, I impulsively closed the card. Honestly, from 2016-2019 I consider the 'lost years' . I'm amazed and grateful 🙏🏽 my finances and credit weren't completely wiped out. Being part of the MyFico community contributed greatly to that positive outcome. Thank you for asking.🥰🥰🥰
@GApeachy wrote:@MySunrise271 in order to maximize your scores you'll need one revolver reporting just under 8.9%. Look around the forum for AZEO (All Zero Except One). There is a penalty for not having a balance report on at least one. You need something in order to be scored.
Here's a recent example of all zero reporting:
I'm using my Fidelity Rewards and Amex BCP for daily expenses, PIF each month but they report between 2- 10%😉 My monthly internet and utilities bills are on auto pay with my Elan MCP as well.
Hello
Happy April. This year is going well so far. I started the year looking forward to being debt free by December and instead I will achieve this by May... I am so excited. I decided to pay it off with my savings, tax refund and bonus from my job. I will be broke but debt free except mortgage and utilities. Yay!!!
Starting Score: 727
Scores are up this month. Slow and steady!
Starting scores 1/1/2022 (Fico8)
EQ: 611 TR:596 EX:619
Current Scores 4/11/2022
EQ:635 TR:633 EX:640
Paying down a lot of high utilization debt - was at around $40k - now down to >20k. Utilization dropped from 83% to 53%. Still waiting for several COs and lates to reduce their impact from 2020/2021. Feeling good about the incremental score increase.
3 inquiries to start rebuilding positive history - openned secured card, business credit card, and waiting on CLI response.
