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pay off card or pay down high util on many cards?


How should I pay?  

183 members have voted

  1. 1. How should I pay?

    • Pay down a few % points on each (1-2 percent each)
    • Pay off 1, pay little toward another


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If you're not planning on apping for anything soon then pay down your highest APR debt first to reduce the amount of interest you'd pay. If you are worried that your creditors will get spooked that you are maxed on a few CC's, then pay down enough to get them all below 90%. It's whatever is more important to you at this time.

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I say it doesn't matter terribly much.

 

What does matter though- carrying a balance on your cards while you're getting a refund. Unless last year was some special tax event that won't occur again this year, I would change your withholding so next year's refund will be minimal. Use the extra money you bring home in your paycheck to pay your cards off quicker.

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I say it doesn't matter terribly much.

 

What does matter though- carrying a balance on your cards while you're getting a refund. Unless last year was some special tax event that won't occur again this year, I would change your withholding so next year's refund will be minimal. Use the extra money you bring home in your paycheck to pay your cards off quicker.

 

+ 1

 

For now, pay down the highest APR and go from there.

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If your utilization is really that high, I'd say you're in danger of getting chopped or even closed if you do anything much outside your normal payment pattern. I would pay some on each card unless you don't care about chopping and the (further) lowering of your credit score for now - I'm assuming your score is low because of high utilization. So, depends on your objective. :D

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Can you request from a Credit Card Company to raise the Credit Limit on my Credit Card(s)? I read that if you ask for an increase in the Credit Limit it will lower the Utilization % of the card if you use the card the same way as at the original limit (I hope you understand what I mean). Will this method also raise my Credit Score?

Also, Will asking for an increase of the Credit Limit on a Credit Card affect my credit? Thank you.

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of course you can request a CLI.

 

but if you're maxed out on the card - not to mention maxed out on all your other cards as well - it's unlikely to be approved.

 

often it's a hard pull, but sometimes not. just depends on the OC and each individual case.

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You shouldn't be getting a refund and you shouldn't be carrying balances. But you didn't ask if you'd already made fundamental mistakes.

 

These would be good goals for 2014!

Edited by cv91915
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As far as tax refunds go though, some people get large refunds every year simply because of refundable tax credits, like the earned income tax credit. It's not always a result of having too much taxes withheld throughout the year.

 

Don't get me started on that.

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As far as tax refunds go though, some people get large refunds every year simply because of refundable tax credits, like the earned income tax credit. It's not always a result of having too much taxes withheld throughout the year.

Don't get me started on that.

Then you would probably get worked up about the woman (single mother with 4 kids) at my 341 bankruptcy meeting last year, who told the trustee she received an $8000 ( ! ) tax refund, lol.

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As far as tax refunds go though, some people get large refunds every year simply because of refundable tax credits, like the earned income tax credit. It's not always a result of having too much taxes withheld throughout the year.

Don't get me started on that.

Then you would probably get worked up about the woman (single mother with 4 kids) at my 341 bankruptcy meeting last year, who told the trustee she received an $8000 ( ! ) tax refund, lol.

That's it. We're claiming our cats this year.

 

Any idea how I would go about getting SSNs for Princess Jasmine Kitler III and Pepe Z. Formation?

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As far as tax refunds go though, some people get large refunds every year simply because of refundable tax credits, like the earned income tax credit. It's not always a result of having too much taxes withheld throughout the year.

Don't get me started on that.

Then you would probably get worked up about the woman (single mother with 4 kids) at my 341 bankruptcy meeting last year, who told the trustee she received an $8000 ( ! ) tax refund, lol.
That's it. We're claiming our cats this year.

 

Any idea how I would go about getting SSNs for Princess Jasmine Kitler III and Pepe Z. Formation?

Ha, ha! When I figure out how to get an SSN for my less fancily named (is that a word?) Stormy cat, I will let you know, lol!

 

I do remember reading that the IRS started requiring SSNs for kids who were being claimed in their parents' tax returns, because of people claiming pets as kids on their taxes.

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As far as tax refunds go though, some people get large refunds every year simply because of refundable tax credits, like the earned income tax credit. It's not always a result of having too much taxes withheld throughout the year.

Don't get me started on that.

Then you would probably get worked up about the woman (single mother with 4 kids) at my 341 bankruptcy meeting last year, who told the trustee she received an $8000 ( ! ) tax refund, lol.
That's it. We're claiming our cats this year.

 

Any idea how I would go about getting SSNs for Princess Jasmine Kitler III and Pepe Z. Formation?

Ha, ha! When I figure out how to get an SSN for my less fancily named (is that a word?) Stormy cat, I will let you know, lol!

 

I do remember reading that the IRS started requiring SSNs for kids who were being claimed in their parents' tax returns, because of people claiming pets as kids on their taxes.

 

 

I would argue that our cats ARE our kids. We went to Mall of America a couple of years ago (I know... Why?), and all we bought were two Halloween costumes for our cats at the 99 Cent Store.

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As far as tax refunds go though, some people get large refunds every year simply because of refundable tax credits, like the earned income tax credit. It's not always a result of having too much taxes withheld throughout the year.

Don't get me started on that.

Then you would probably get worked up about the woman (single mother with 4 kids) at my 341 bankruptcy meeting last year, who told the trustee she received an $8000 ( ! ) tax refund, lol.
That's it. We're claiming our cats this year.

 

Any idea how I would go about getting SSNs for Princess Jasmine Kitler III and Pepe Z. Formation?

Ha, ha! When I figure out how to get an SSN for my less fancily named (is that a word?) Stormy cat, I will let you know, lol!

 

I do remember reading that the IRS started requiring SSNs for kids who were being claimed in their parents' tax returns, because of people claiming pets as kids on their taxes.

I would argue that our cats ARE our kids. We went to Mall of America a couple of years ago (I know... Why?), and all we bought were two Halloween costumes for our cats at the 99 Cent Store.

Lol! My cat would never cooperate with wearing a Halloween costume! She can barely even tolerate being petted, unless she's lying in my bed relaxed or asleep. I've lost count of the number of times she's bit me or my kids. My husband is the one she likes best in the house, so she rarely bites him. I'm convinced that she thinks she's his wife, for the way she follows him around, and sleeps next to him every night, ha, ha! My husband was never much of a cat person until we got her.

 

She's ornery and ungrateful, but I still love her - she's like my 3rd kid, and one of my most favorite pets I've ever had.

 

My (now deceased) dad found her as a stray, wandering around a Walgreens parking lot in the winter, a week after another kitty of mine had died, and took her home for me. She's black and white, my favorite kind of cat, same as my kitty who died, and extra special, since my dad gave her to me.

 

She's an old feline, 14 this year. I'm hoping she still has a good number of years ahead of her. She's pretty active still for an old cat, so hopefully so.

Edited by RedHairedLady
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I answered by % just based on the two options provided in the sidebar of the main forum, without knowing the scope of the OP's inquiry. @90%+, yes, highest APR 1st. My situation, 5%UTI, equivalent APR's and preparing to $0 a couple of accounts, I am opting for the % points this month. Never a one size fits all I suppose.

 

+1 on APR

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First off, this is my first post in this forum.

 

Second, I was that single mom with four kids, 25 years ago, and, while I didn't get $8000, I got a fair amount, because I was working full time and had four kids.

 

I'd let my license as a medical professional go, in order to be the primary provider for those four kids, while I was married to their alcoholic dad. Divorced him, had to work. The first two years after the divorce, we never had a clue what amount of his court ordered support would be paid, till he stopped entirely, and filed a court case to have his child support terminated. BTW, 25 years ago, the man was making over $50K, and paying under $1k for said four kids.

 

Moral of that story: don't judge. You have no idea what the circumstances of a person's life are. OF COURSE, I ended up filing bankruptcy, when I could no longer support them with NO child support, even working as much overtime as I could get.

 

As to the OP: nothing you do will raise your credit scores that much, if you have high utilization and are making small payments. I know this from experience. Stop using the cards. Period. If you have to go to a pay as you go flip phone to afford to eat and have a roof over your head, do it, but stop using the cards. Pay the minimum on all but the one with the lowest balance. If the tax refund will pay that off, great. If not, pay what you can on that, and work on getting it down to zero.

 

When it's down to zero, pay down the next lowest balance to zero, adding what you no longer have to pay on the one that's gone. It will take time. I'm down to one card that's at about 70% utilization, 3 at zero, doing that for 18 months.

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First off, this is my first post in this forum.

 

Second, I was that single mom with four kids, 25 years ago, and, while I didn't get $8000, I got a fair amount, because I was working full time and had four kids.

 

I'd let my license as a medical professional go, in order to be the primary provider for those four kids, while I was married to their alcoholic dad. Divorced him, had to work. The first two years after the divorce, we never had a clue what amount of his court ordered support would be paid, till he stopped entirely, and filed a court case to have his child support terminated. BTW, 25 years ago, the man was making over $50K, and paying under $1k for said four kids.

 

Moral of that story: don't judge. You have no idea what the circumstances of a person's life are. OF COURSE, I ended up filing bankruptcy, when I could no longer support them with NO child support, even working as much overtime as I could get.

 

As to the OP: nothing you do will raise your credit scores that much, if you have high utilization and are making small payments. I know this from experience. Stop using the cards. Period. If you have to go to a pay as you go flip phone to afford to eat and have a roof over your head, do it, but stop using the cards. Pay the minimum on all but the one with the lowest balance. If the tax refund will pay that off, great. If not, pay what you can on that, and work on getting it down to zero.

 

When it's down to zero, pay down the next lowest balance to zero, adding what you no longer have to pay on the one that's gone. It will take time. I'm down to one card that's at about 70% utilization, 3 at zero, doing that for 18 months.

I apologize, I didn't intend to come off as judgmental. I just intended it as good natured ribbing of cv there, because we often disagree about things here on CB.

 

I have nothing against single mothers. One of my nieces is essentially raising her child alone. Her mom, my oldest sister, was a single mother for a short while, until she married her husband, who adopted her daughter. And my brother is currently married to a woman who was a divorced single mother when he met her. His first wife was a single mother as well, when he met her. I have several step nieces and nephews in my family.

 

I have gone through many tough times financially, including two bankruptcies, due largely to job losses and high medical expenses. Believe me, I don't judge anyone for having to file for bankruptcy, for circumstances they couldn't control.

 

And there have been a couple of years, some years back, where my husband and I had a combined income low enough to qualify for a small earned income tax credit. I consider myself quite liberal, and I actually am in favor of programs like the EIC.

 

I was just shocked to hear that someone got $8000 back in a tax refund, because I'd never before heard of any one getting that much back, single mother or not.

Edited by RedHairedLady
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  • 5 years later...
On 4/1/2014 at 4:11 PM, MomAttack said:

 

 

When it's down to zero, pay down the next lowest balance to zero, adding what you no longer have to pay on the one that's gone. It will take time. I'm down to one card that's at about 70% utilization, 3 at zero, doing that for 18 months.

paying highest APR first is the better way to go if you want to get the most alpha from your money

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1 hour ago, hdporter said:

 

So much that's curious about your reply to "Mom's" 6 year old post (and her cicadia-like post frequency) ... too much to comment

sorry I had all of her threads open and didn't notice the date on this one. hopefully the slow-witted food bloggers don't file a report with the mods.

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