I have a Capitol One Journey CC w a balance of $500 that is maxed out and a Credit One CC with a $500 balance that is maxed out as well, each with a $25 min a month payment. Then theres my awful Walmart CC that has $2700 with a ridiculous interest rate on it with a min payment of $66 a month. I hate this card and want it gone! I'm gettin $1,000 back in taxes, all which I am puttin towards my CC bc I have so many CC bills I pay a month i hate it. SO should I pay the 2 cards that have the $500 balance or put that mney towards the Walmart card?? ANy tips will help. Thanks!
Re: Shud I pay off 2 of my lower balancd credit cards or the higher balance/interest If your goal is simply about saving money, then apply the majority of your refund to the high interest rate card. I say majority because it's in your best interest to get those C1 cards down away from being maxed out, at least $50 each, last thing you want is interest putting you over the limit creating more fees. You don't list a CL with Walmart but it sounds as though your utilization is very high across the board; once you get it down try to pay off what you buy in that same month.....you'll save money (by not paying more for something than cash customers), and you'll do wonders for your credit and scores. Also, once you're comfortable with purchasing and paying off your cards before interest starts accruing (PIF each month), and your utilization is down to 5-20%, you may want to look into Rewards type cards; depending on the issuer the rewards are typically 1-5% cash back… so instead of buying something for $100 and taking 3 months (this is conservative, paying at just minimums you're more likely to take over 6 months) at 24.99% to pay it off (and paying more like $105 for it, taking 3 months to pay off), you could be getting it for $99, $98, or $95 dollars. Per purchase this doesn't seem like much, but it all adds up and if you run a couple thousand a month through your cards, this could be $150-$200 a month back in your pocket just by adjusting the way you use your credit. Didn't mean to give you a lecture on this, just some helpful tips.
