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TravelNut

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  1. Long story short I'm maxed out on high interest CC's right now but have a solid plan to get all of them to 48% Utilization by 10/2021. (I have a thread in Credit Forum if you want more details.) Getting them to 48% utilization should get me to about 750-760 Mortgage FICO middle score. My plan is then to Refi my home to lower rate (current is 4.6%) and take out the $45k in Equity to pay off all CC cards to $0 balance. Current owed is $350,000, home worth $500,000. My sticking point might be my DTI because with the CC payments amounts with all cards at 48% Util will drive my DTI up to 51% but my plan is to pay those cards off with the Equity so my DTI will be 37% with cards paid off. Will lenders work with you on a Refi with the agreement that the Equity pulled out goes straight to pay off CC's at closing? I don't know if 51% DTI is even that horrible of a number, I know it's not good but being considered for the loan with 37% DTI would be optimal for me. Thanks in advance for your feedback!!!
  2. Question on the different utilization buckets there are like over 89% you are considered maxed and in a bucket and between 69-89% you are in a lower (but better score) bucket. What would the rest of the buckets be that you would see a decent score boost on? I've read that if you get under 50% utilization would be a good score boost so is that the next one after the 69-89% bucket with a decent score bump up? After that would it be under 30%? Then after that I would imagine the only way to get good size score bump would be to have $0 across the board on all cards and only report one each month under 5%? My eventual long term goal after getting the CC debt under control is to get a new mortgage and qualify for the best rates with that and with my research is that the mortgage FICO scores normally used (EQ 5, TU 4, Exp 2) don't have as much focus on credit utilization as FICO 8 does. So my scores should be a bit higher on Mort scores than FICO 8 scores with assuming the same amount of utilization. I looked up my mortgage scores from an old MyFico 3B report from 12/2016 when my utilization was about 20-30% and they were EQ 5 - 750 TU 4 - 740 Exp 2 - 753 These scores were with a 60 day late still reporting across all three reports and that is now gone and my credit age has doubled since then. I have a better credit mix now too with a mortgage on my file that i did not have at the time of those scores. I imagine when I get down to 20-30% utilization again that it wouldn't be out of the question that my Mortgage scores could be in 760-775 range. Thoughts?
  3. Yes you are right, I'm now considering this possibility but this would only come into play until I get all cards to about 50% utilization to get my scores up enough to qualify for one but yes even if it's a 6-8% HEL that is better than paying 18-25% on the rest of my balance on my cards at that time. I ruled it out initially because I didn't think homes in my area have gone up as much as they have and now after looking into it I think I could have about at least 65k-90k of equity depending on how favorable the appraisal would come back. Going to seriously look into this once my Mortgage scores get to at least 720 across the board which might take about 40-50% utilization. I will also have to take into account the fees involved with an HEL or a refinance but I still think even with fees it would still be less than paying high rates on like $45k of CC debt by the time i could qualify for a HEL/Refi.
  4. Yep good point, this would get me out of a high risk bucket if I'm in one and keep me out till the end. Thanks for the feedback!
  5. Yeah I don't think I will be trying this because I don't want to rattle any cages and have them close one of my cards. Bofa decided to do that all on their own and closed my account with them and Barclay took my Max limit on their card from $20k down to $3050 and I don't need that happening to the others at all.
  6. Is there any negative reporting for reducing a rate on a card if they agree? Worth a try if no negative reporting
  7. Yes all great suggestions! Already down to bare minimum now on monthly expenses and forecasting about an extra $5k a month from here forward so i should be able to make quick work of the debt but just trying to see what the smartest way to go about it to save some money in the long run. No BT offers on the $0 cards and haven't shopped for any consolidation loans yet but might be worth checking since they can take into account that the loan will be fully to pay for CC debt and will then lower my monthly liability increasing the chances of paying the consol loan off. My payment history is Exceptional so that should be taken into account too.
  8. Ok everyone, my first post here and I NEED help! 🙂 I have $90,048 of CC debt across 10 cards with interest rates ranging from 11.9%-24.9% Card Balance Limit Rate 1 $23000 $23500 24.9 2 $8388 $9000 23.9 3 $4044 $4300 22.9 4 $2493 $2600 22.2 5 $6700 $7500 20.9 6 $8200 $8200 20.7 7 $6785 $9500 20.2 8 $2014 $2250 16.9 9 $18549 $19000 12.9 10 $9875 $10000 11.9 11 $0 $1500 27.2 12 $0 $3050 24.9 13 $0 $2200 20.2 Long story short, I am usually very good on my financial decisions but the last two years have been crazy with family issues, medical stuff etc. I knew that I would eventually get to a point where all the issues would flatten out and a promotion at work was on the horizon. Well, luckily there is no need to be bleeding out money anymore and the promotion has been realized so i can now start to aggressively get back to $0 CC debt. My current calculations show that with my current income and as long as nothing crazy happens in the next couple of years that I could have all of this paid off by 9/2022 if I just focus on the the high rate cards first and work my way down. This calculation includes the interest as well so it is a solid calculation. My initial thoughts were to just start with the 24.9% card and start there and work my way down to the last card that has a 11.9% rate. I then starting to think that i could maybe save money by paying down all cards at the same time instead of focusing one at a time to get all cards under maybe 50% utilization at the same time to then apply for a SOFI loan and hopefully get like a 7-9% rate for like $50k loan to pay off the rest of the CC debt and only be paying on a personal loan at a lower rate. 3yrs ago prior to me jacking up all the cards when i had zero CC debt and one 60 day late reporting my FICO scores were pretty good so if i get my CC utilization down quickly I think my FICO's would get up rather fast and possibly high enough to qualify for a decent rate for a personal loan. Here are my FICO scores from my "My FICO 3B Report" from 1/2018 when i had 0 CC debt and 1 60 day late reporting: FICO 8: Equi: 688 Trans: 695 Exp: 705 FICO 5: Equi: 731 Trans: 735 Exp: 740 FICO Auto Score 8: Equi: 715 Trans: 719 Exp: 717 FICO Auto Score 5: Equi: 734 Trans: 768 Exp: 774 Since then I have zero lates on my records, my credit age has gone up considerably since I have not shopped for new credit in last 3 years so the only thing obviously seriously holding back my scores is the atrocious CC utilization. Based off this i think once utilization goes down my FICO's will be looking great. Current FICO's with the like 88% CC Utilization: I have not paid for my 3 B report since 1/2018 so the scores below are from my various CC companies or CU's that provide scores to me monthly: Nasa Fed CU: 724 (Experian) AMEx CC: 611 (Vantage 3.0 Score) BofA CC: 683 (Transunion) Capital One: 611 (Vantage 3.0 Score) DCU: 687 (Equifax FICO 4) Discovery: 683 (Transunion FICO 8 Barclay: 683 (Transunion) PenFed CU: 663 (Equifax FICO 9) I have a home with a mortgage in perfect standing but no room for an equity loan to cover this debt so would have to go for a personal loan. i guess another option would be that as utilization goes down and FICO's go up to look for CC's that have 12-18 month 0% balance transfers offers and focus on the cards that have interest being charged. How would you approach this situation to come out with more money in your pocket in the end?

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