Credit Card Debt Paid Off (pay, debts, rates, accounts)
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I have 4 credit cards--Capital One Mastercard, Bank of America Visa, Dell Financial, and Best Buy.
Total credit available is around $11K. I was maxed out on everything but the Dell card.
I recently inherited some money and paid off all the balances. I was wondering if anyone had suggestions for responsibly building my credit back up using these cards. The Best Buy and Dell have extremely high interest rates and pretty much plan on putting them to the side.
Best Buy $2000 limit
Dell Financial $5000 limit
BoA Visa $3000 limit
Capital One MC $1000 limit
I'd ditch the store cards and then use your Visa or Mastercard for purchases you have to make anyway (like food and gas) and pay that off completely every month, and not buy ANYTHING on credit ever again (where you have to make payments).
You were blessed. Got off that treadmill. Don't be dumb and do it again.
Thanks! It feels good. This, combined with having just paid off my car loan will free up a lot of extra money each month.
After paying off my debts, I'll have around $20,000. Thinking about taking half of that and putting it into savings and investing the rest. I also inherited about $100K in stocks.
When you say "ditch" do you mean I should close them? I thought I'd keep them open but not use them.
You should keep them open. cut them up if it'll make you not spend on them.
Part of your credit score is calculated by the amount of available credit you have. so if you have 11k in limits and 0 dollars on them you'll have a higher score than 4k limits and 0 on them.
^Gotcha!
So, for example, I should maybe designate the Visa as my gas card and the MC as my food card. Then, just pay the balance off each month.
Anyone know what the immediate effect on my credit score will be? I'm in the 620's right now.
If you have no accounts with late payments over 60 days then you should build it back up pretty quickly.
I had someone related to me mess up my credit pretty badly with delinquent payments about two years ago and got my score down to the low 500s, and now after paying EVERYTHING on time, I am now into high 700s.
Also for your credit cards, if they are rewards cards, I would definitely use that to your advantage for which card you use to buy gas and which you use to buy groceries and whatnot.
After paying off my debts, I'll have around $20,000. Thinking about taking half of that and putting it into savings and investing the rest. I also inherited about $100K in stocks.
Damn Nice. I keep hoping one of my relatives kicks the bucket so I can inherit some money, but none of them ever do.
Damn Nice. I keep hoping one of my relatives kicks the bucket so I can inherit some money, but none of them ever do.
I feel very fortunate but I'd also give it all back immediately if it brought my mom back.
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