Credit Tips: Tips on Paying off Credit Cards

Posted On: January 1, 2006

Author: ldh
Posted: Wed Jul 07, 2004 12:47 pm
Post subject: Tips on Paying off Credit Cards
2/24/2002 6:39 am CDT

I have seen this covered before but haven’t seen a real answer yet. I have a $1200 balance on a furniture card at 18%. I have a $2200 on a mastercard at 18% and $700 on a visa at 10%. I do not want to transfer all the balances. Which one should I pay off first?

Author: Doug
Posted: Wed Jul 07, 2004 12:53 pm
Post subject: Tips on Paying off Credit Cards

2/24/2002 6:46 am CDT

I would payoff the $1200, 18% furniture card first

Then the $2200, 18% mastercard, second

Then the $700, 10% visa, third

Author: Ira Stoller
Posted: Wed Jul 07, 2004 12:54 pm
Post subject: Tips on Paying off Credit Cards

2/24/2002 9:04 am CDT

If you can, pay the $2,200.00 first and get out from under it. Next the $1,200.00, and finally the lowest interest amount.

Author: Doug
Posted: Wed Jul 07, 2004 12:55 pm
Post subject: Tips on Paying off Credit Cards

2/24/2002 9:09 am CDT

Ira, why would you pay off the $2200 amount first? and the $1200 amount second?

Since they are both 18%. It would be less paperwork to get rid of the $1200 amount, first.

Author: Ira Stoller
Posted: Wed Jul 07, 2004 12:55 pm
Post subject: Tips on Paying off Credit Cards

2/24/2002 9:27 am CDT

If you have the means to pay either amount in one shot, pay the higher rather than the lower. If the question related to payments over time, then you’re correct, aim to pay the smaller amount first since you’ll get rid of the finance charges faster. Either your answer or my answer might be correct depending on the actual circumstances.

Credit Tips: Tips on Paying Off Credit Cards

Posted On:

Author: Sheryl
Posted: Wed Jul 07, 2004 11:02 am
Post subject: Tips on Paying Off Credit Cards

2/25/2002 9:40 am CDT

I am in a position to pay off all my credit cards. I do not intend to use them in the future. Is it best to ask the credit card agency to close the account (and note that the closing is requested by me), or does it look best on your credit report to show that you have an account, but do not use it?

Author: Dani
Posted: Wed Jul 07, 2004 11:03 am
Post subject: Tips on Paying Off Credit Cards

2/25/2002 10:29 am CDT

Sheryl,

It all depends on how many credit card accounts you have open? If it’s 10 or 20 I would recommend closing some (over time, all at once will kill your FICO score). It you have only 2-3 accounts I would keep them open and just use them once in awhile to keep them active. One of the hardest things in the world to do is to re-establish credit.
Just as a note before closing any accounts make sure the balance is paid off in full. Once the balance is $0 contact customer service and ask them to close the account and to send you a letter stating that the account is closed by consumer with a $0 balance. This is just a precaution.

Credit Tips: Tips on Paying Off Credit Cards

Posted On:

Author: ldh
Posted: Wed Jul 07, 2004 12:47 pm
Post subject: Tips on Paying Off Credit Cards

2/24/2002 6:39 am CDT

I have seen this covered before but haven’t seen a real answer yet. I have a $1200 balance on a furniture card at 18%. I have a $2200 on a mastercard at 18% and $700 on a visa at 10%. I do not want to transfer all the balances. Which one should I pay off first?

Author: Doug
Posted: Wed Jul 07, 2004 12:53 pm
Post subject: Tips on Paying Off Credit Cards

2/24/2002 6:46 am CDT

I would payoff the $1200, 18% furniture card first

Then the $2200, 18% mastercard, second

Then the $700, 10% visa, third

Author: Ira Stoller
Posted: Wed Jul 07, 2004 12:54 pm
Post subject: Tips on Paying Off Credit Cards

2/24/2002 9:04 am CDT

If you can, pay the $2,200.00 first and get out from under it. Next the $1,200.00, and finally the lowest interest amount.

Author: Doug
Posted: Wed Jul 07, 2004 12:55 pm
Post subject: Tips on Paying Off Credit Cards

2/24/2002 9:09 am CDT

Ira, why would you pay off the $2200 amount first? and the $1200 amount second?

Since they are both 18%. It would be less paperwork to get rid of the $1200 amount, first.

Author: Ira Stoller
Posted: Wed Jul 07, 2004 12:55 pm
Post subject: Tips on Paying Off Credit Cards

2/24/2002 9:27 am CDT

If you have the means to pay either amount in one shot, pay the higher rather than the lower. If the question related to payments over time, then you’re correct, aim to pay the smaller amount first since you’ll get rid of the finance charges faster. Either your answer or my answer might be correct depending on the actual circumstances.