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Have $9300 available to pay off debt closed card or open cards?


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I've asked this before but didn't feel like I have a solid understanding of whats more important. As of right now I have $9300 in cash to pay off some debt. I'am torn on dropping all $9300 on a closed Navy Card with a balance of $14k, or paying off my open lines of credit to 0% util and then snowballing the Navy Card. As of this morning I'm using 143% of available credit, motsly due to the closed card having a balance and some of my open cards being at 90% util due to divorce attorney fees. Alot of the credit simulators online, Credit Karma and USAA, show I could expect to get a decent 30 point bump by simply paying off my open cards, but I can reduce the overall util to under 100% if I pay the $9300 on the closed Navy Card and severely reduce the interest I would pay aswell. The other thing weighing heavily on this is my upcoming security clearance review and which would look worse to the investigator, a closed card with above $10k balance and other cards at 80 percent util, or a closed card with 4k balance and all other cards at 0%?

 

Goal is to buy a house with a VA loan next Summer.

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I would say it would look better to pay closed cards. But I like the snowball approach as it gives you a plan to pay off the closed ones. What would be you plan to pay of the open ones if you pay the closed accounts?

 

 

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Three of them are at 0% interest due to SCRA violations the other two are 13% and 17% respectively. I would pay off the $2k star card and take that $100 a month and pay off USAA ($~3K balance) and then hit the 0% interest small cards. I have the cards listed below:

 

USAA $3150 balance, $7k Limit, 13% APR

STAR Card $2600 balance, $4k limit, 17% APR

Amazon, $590 balance, $800 limit, 0% APR

Walmart $2000 balance, $2200 limit, 0% APR

Capital One, $800 limit, $700 balance 0% APR

 

Or I could pay all them off and then hit Navy at $600 a month and then an additional $1500 every quarter from my Pell grant.

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Pay off everything else to get those utilizations to zero. Don't be surprised if you don't get balance chased though. You'll want to definitely address AAFES as I read elsewhere on here your Uncle Sam doesn't like to mess around. Need to keep a little bit of an emergency fund and build that back up while paying off NavyFed.

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Pay off everything else to get those utilizations to zero. Don't be surprised if you don't get balance chased though. You'll want to definitely address AAFES as I read elsewhere on here your Uncle Sam doesn't like to mess around. Need to keep a little bit of an emergency fund and build that back up while paying off NavyFed.

Synchrony has been doing this to me already on Walmart and Amazon store cards. I thought about paying them down to 10% and letting that report for a few months that way then paying them off or paying all of them to 30% and waiting a few months then paying them all off minus Navy Federal. The irony was even with that closed Navy Card last summer they gave me a second $30k new auto loan at 2.21%, but now im paying my ex-wifes car payment until she hands teh vehicle over to me in the next 90 days.

Edited by ihatecollections
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I will pay the open cards down to around 10% and let the balances sit for two months then pay them off. My Walmart FICO was 666 this month with heavy utilization, im guessing if i pay them down to 10% i will be near 700 again. I do have a medical collection on there as well im fighting from my ex-wife which should get deleted any day.

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