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wentzels4

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what credit cards should you pay off first
The following are the credit cards that I have with apr's balance and limit. Just want to know what I should pay off first.

Dress Barn apr 24% balance 132.00 credit limit $500
Victoria Secret 24% balance 282 credit limit $500
Justice 24% Balance 165 credit limit $250
Capital one 0% balance $296.00 credit limit $300
Navy FCU Visa 15% Balance $2,950 credit limit $3,000

I always thought you should pay down the ones with the most money on the cards and higher apr but looking at my balances I am thinking I should start with the ones that have the least amount of money on them. What do you think?

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ADVICE ADVICE ADVICE!

Helpful to 3 out of 3 people

i don't agree with one of the previous posts about cutting up your retail cards...your balances aren't outrages that i would consider as irresponsible spending. instead, hide them or keep them in a safe. pretty much anyone NOT in your wallet or near a computer so you're less likely to use them! besides, once you get back down to reasonable balances (20% utilization), feel free to use the cards RESPONSIBLY!

now, next priority: are you looking to improve your credit score, or save money?

if to improve credit score: knock down the balances on the Navy Federal and Capital One! you're very close to 100% utilization on these cards, which is very dangerous in the credit world. make sure you're paying at least the minimum on the store cards each month to keep them in good payment history standing. sure, it may seem like you're not making a significant dent because it's gonna take longer to pay down the higher balances, but your credit score will thank you for it :)

if to save money in the long run: you may look at all the information and say "welp, the retail store cards have a high APR, so let me start with those first!" but if you do the calculations of monthly interest, you'll see that the Navy Federal will have higher interest charges! after doing the calculations, i found that Dress Barn would have a $2.64 monthly interest charge, Victoria Secret a $5.64 montly interest charge, Justice a $3.30 monthly interest charge, Capital one no interest charge because of your 0% intro interest rate, and Navy FCU Visa a whopping $36.88 monthly interest charge! sure, doesn't sound awful, but in a year? that would be $442.56 in a year at the current balance!!! work on getting that balance down to your retail card balances to minimize interest charges, then knock out the retail cards! also remember to be making at least the minimum payments on all the cards!

hope that all helps :)

Reply by
wentzels4

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Thank you very much Daybreakgone. My goal is to improve my credit score. I will take your advice and start putting my main focus on the Navy FCU card. I pay all of those cards ontime, if not early, and at times pay more then they ask so that should help as well.

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Hmmm!

Helpful to 2 out of 2 people

Personally, I would focus on Navy Fed the most. However, I would pay as much as possible on the Navy Fed while continuing to pay at least the minimum on all store cards and once Navy Fed got to approx $1300-$1400 transfer all other balances to it to consolidate and pay less in interest charges, then take what u would've paid all the cards combined and apply it monthly to Navy Fed to eat away at the balance. Then going forward I would only use the store cards when they have a promo or really good sale that u can afford to pay off within the month. Just my opinion!

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Hi

Helpful to 1 out of 1 people

Navy FCU Visa 15% Balance $2,950 credit limit $3,000

Pay up this card till you bring it down to 900$ and stop spending on this card. Keep paying the minimums after you bring it down to around 900$. its never good to max out a card.

Capital one 0% balance $296.00 credit limit $300

Bring the limit on this down to <100. Keep paying the minimums after that

Justice 24% Balance 165 credit limit $250

Bring this down to <100 too.

Victoria Secret 24% balance 282 credit limit $500

Bring this one to about 110 

Dress Barn apr 24% balance 132.00 credit limit $500

you are doing okay on this . Just keep oaying the minimums

Your top priority should be the NAVY card. Bring the balance on that to below 1000 and you will see your credit score jump by atleast 20 points.

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Heidi

Helpful to 1 out of 1 people

Hit Dress Barn with all you have, paying only the minimums on the rest.  It's the smallest.  After that one's done, move on to the next smallest, giving it all you can and still paying minimums on the rest.

Worked for me. :)

Three years ago I had $25k in credit card debt (thanks to a nasty divorce).  Today, I carry $200 total credit card debt on the last card I have left to pay off.  From now on, anytime I use a card, I pay off the purchase within a week.  I am still trying to rebuild my post-divorce credit so I really need to keep some activity showing on a few of my cards.  I basically think of them the same way I do my debit card.  I am spending this money right now, it comes out of my checking within a week of the purchase.

Good luck getting it all paid down.  It can be frustrating at times, but it is such a relief once you see the balances coming down.

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Store Cards

First, cut up the store credit cards (Dress Barn, Victoria Secret, and Justice) and pay those three off first. Next pay off the Navy FCU Card and save the zero interest/Capital One card for last.

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ratios

I'm not much of an expert, but I would try to stay below 50% utilization of any one of my cards.  The fact that you're right up against maximum utilization on two of the cards is not so good maybe.  The Navy FCU Visa at 15% and a balance of $2950 should be brought down first.  As long as the rest of them are under 50% of the credit limit you can try to pay down the ones with higher interest first.  Hope this helps! 

Ed Porter

Atlanta, GA

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Start small....

If it were me, I would pay off the lowest amount with the highest a.p.r. I made the required payment on all but the one I was starting with and I paid more towards it to quicken the process. Once the smallest is paid off go to the next, before you know it their all paid down. Dont cut the cards, and dont close accounts. That is a negative on your credit report as well. Just be responsible.

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The ones with the highest interest rate

Helpful to 0 out of 1 people

Pay the ones with the highest interest rate. If there is a tie pay the one off with the lowest balance.

1. Dress Barn
2. Justice

3. Victoria Secret

4. Navy FCU Visa

5. Capitol One

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