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Posted: Wed Aug 23, 2006 5:29 pm Subject: Credit repair question

I have 6 credit cards, all current, never late. All of them are at or near the limit. I am planning on dumping about $1,000 into the cards. Is it better to spread that payment amongst all of the cards or to pay 2 of them off and put the rest between the others? I have been repairing my credit and have raised my score almost 100 points over the last year. I really want to buy a house next year and want to get the best rate possible. Any advice would be much appreciated! Smile

Posted: Wed Aug 23, 2006 6:01 pm Subject:

Any account that gets paid first is immediately updated in the credit report. This increases the credit scores from what you have in the present. If I had been in your shoes, I will use that money for paying off the accounts with shortest balance. The impact will immediately be put in the credit file.

You can spread the money towards your accounts but I will consider the flow of money also if it is regular every month or not. On one side, the money can be used to pay all the debts. On the other side, money can be used to pay off the accounts with the shortest balance. I will get immediate results if I make the second move. You can decide which move will be the best for you.

Posted: Wed Aug 23, 2006 6:13 pm Subject:

that is what I was thinking too. My only thing is, I have a card with $1000 limit and I am paying almost $30 per month in interest charges and another card that is $900 limit and paying around $20 per month. I know that I REALLY need to cut some of these cards up so I can't spend the money after I pay on them. Do lenders frown upon student loan amounts even though I have not began repaying them yet?

Posted: Wed Aug 23, 2006 6:23 pm Subject:

Depends on the lenders you have. But try to save as more money as much possible. Live on hard cash and throw the credit cards into trash. They are the real culprits of our financial downfall. I hope you come out of this very soon. I too have some financial problems and the thoughts in my mind don't let me sleep comfortably. Imagine, my hair is falling down.

Posted: Wed Aug 23, 2006 6:27 pm Subject:

yeah, me too. To top it all off, I work 45 hours a week for an CPA firm, in school for 15 credit hours, and am a single mother of 2 boys. I feel like I am going to go crazy and snap one of these days! Good luck to you, hopefully we can learn from our mistakes.

Posted: Wed Aug 23, 2006 6:44 pm Subject:

Hopefully, things will get normal soon for us. I will keep you in my prayers when I will be asking some strength from God

Guest · Posted: Thu Aug 24, 2006 12:44 am Subject:

The best way is exactly what ( aciotsf ) has said to you. It's alot easier to pay on six cards a month than it is seven.

I would also go along with what you have also said yourself and throw one or two of those away when you pay them off.

Good Luck!

Posted: Sat Aug 26, 2006 12:05 am Subject:

Owning six credit cards is way too risky. It shows that you are relying on credit too heavily. You need to break this reliance.

You need to work towards paying off at least 3 of them. Get rid of the cards with the highest interest. You are only making the card companies richer while you are getting poorer.

So first, you should tackle the cards with the highest interest. On each of these 3 high interest cards, you should pay above the minimum. For the other 3 cards, you should pay the minimum.

Paying above the minimum will help you attack more of the interest and prevents you from getting stuck with just the principal.

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