We all know that ratios are about 30% of your scores and I am trying my best to make our accounts look as good as time and money permit. Here are the current numbers and I have an option or 2 that I am considering. Card A 3800 balance 5K limit Card B 3500 balance 11k limit (6.9 BT option til June) Card C 4800 balance 5K limit ( killer) Card D 500 balance 3K limit Card E 700 balance 1K limit Card D 700 balance 1K limit Now card E and D I can probably get down within next 2 months to around 500 each, my main concern is hubby's card C, but would it be better to tranfer from Card B and get that down some, just trying to move some balances around to make it look better. BTW after the BT runs out both cards have same APR so I won't be losing anything by moving the balances. I honestly can't get his card down as much as I would like by June, we need to start saving money so I am trying to think of the best option I have. I can get it down some but thought this may be the better route to take?? I appreciate any input that anyone can give me Thanks Mom
RE: Need some advice on my cur Mom Even if you move the balances around does that change your overall ratio, nope. There is only one way to make the ratio go down and that is to pay off the bill. With that said, if a balance transfer will save you $$$$, then do it. Another thing to think about is this. At one time I had approximately $11K in balances spread out over about 4 cards, I called MBNA and they gave me a gold option cash loan at 11.99% to pay off all the cards. The "kicker" here is that the loan they gave was reported as an installment loan because it was. This made my revolving balances 0. Anyway, just my 2 cents. JP
JP Thanks JP, I do understand what you are saying and I would be just moving it around, but it was brought to my attention by my lender says that having a card near the max didn't look good, so I was trying to have them not show near max. You are correct though the total ratio won't change a bit. Maybe I will just pay down what I can and go from there. As always I appreciate your input Mom
forgot to add Now I realize that BT won't improve my overall ratios at all they will stay the same just moved around. The reason I was even considering this is b/c I was told that having a card at the max didn't look good on our reports even if our total ratios were under 50%, I know should be lower but, I was just concerned about his 4800 balance. Just want to clarify, I realize it won't change m overall one bit. Thanks
RE: forgot to add For what it's worth - how about asking for an increase on the loc. It would make the ratio smaller if they gave a substantial increase.
RE: forgot to add Thanks LKH, yes I have requested a line increase and was told it is computer generated, BS, I have written complaint at planetffedback.com, maybe that will help. This account is 18 months old never late always pay ahed of time and NEVER offered an increase. I received and email they are supposed to address my complaint in one business day, we shall see Mom
RE: forgot to add People have had a lot of good luck with Planetfeedback. I am trying to decide if I should send a couple of complaints through them but am waiting to hear more results.
To:mom I remember hearing on this board, once you pay a card all the way down, after 3-18 months you are sure to get an increase. Of course it won't change you ratio but it will get you that increase to change it. Someone hear said thay had a $1500 card and requested every increase (starting at 3 months) and ended up with a $13,000 limit. Someone else here said they threatened with a balance transfer and got a lower apr and $1000 increase, pertty savy. kev
RE: Need some advice on my cur Hi Mom, I am assuming that you are concerned about your debt ratios because you want a great score for a great rate on a mortgage. I'm not sure if you need your income to qualify for the loan amt you want for a house. If your income in compared to your debts is not going to help, you might want to do what I did. I have student loans that I have to pay back = to how much I make per year. So, we decided to have hubby do the home loan himself. The home will still be in both your names. Just not the loan. Anyway, For a few months I took on all the debt. I paid with my credit card for everything. I mean telephone, groceries, gas, you name it. And I took every cent of that money that I normally used to pay bills and paid all his debts that I could, including some of his collection accounts. Currently he has 80.44% available. But that's because of his recent increases. When he applied he had ~ 70% available. Currently, I have 44% (ouch) I know my score dropped. But my goal was achieved. He qualified for the home with a good rate (7%)in comparison to his credit. And next month I can focus on paying my debts back down. If this is not an option I would transfer your balances with the highest APR (assuming there is no super high BT fees or anything) and keep chipping away at the debt. Save some $ in interest. You'll get there in no time. You might want to check out the bureau's list of reason codes chart. Here's a couple - 10) Proportion of balances to credit limits is too high on bank revolving or other revolving accounts - It doesn't seem to separate it by individual account. 1) amount owed on account is too high - that's a pretty low ranking code to even worry about. Remember, you are in a much stronger position than we were/are. Hubby's credit is horrible. You'll get the loan with a great rate! Kelly
RE: some advice on ratios This is an unusual suggestion, but it could help your overall utilization ratio: Remember Aspire Visa? They don't report at all. If you could get one at a halfway normal rate, say 21% or 22%, then you could spend on that card while paying down the other balances. I calculate that in your case, a mere $1300 that you transfer "off the balance sheet" in this way would reduce your overall ratio from 54% to 49%. In addition, that same $1300, it you used it all to reduce your worst ratio, would reduce that particular ratio from 96% to 70%. It would still reduce your overall ratio from 54% to 49%, by the way. This technique might be good to try when everything else looks good to the lender. Some disadvantages would include: Extra interest paid for a few months. An extra 10% (22% instead of 12%, for example) paid for 6 months on $1300 would total $65. Another inquiry just before applying. Aspire, being a somewhat perverse organization, could decline you or try to charge you an APR of anywhere from 27% to 35%. It may be worth a try, however. I'm keeping my own Aspire Visa with just this type of situation in mind. :
RE: Need some advice on my cur Thanks for all your responses, I didn't want anyone to think I thought I could lower the total by moving some around. I was just concerned b/c as Kelly pointed out there is a reason code for having one card with a patricularly high balance, and my main goal is for a higher score. I will think about all suggestions I have gotten and make my game plan. I appreciate you all taking the time to respond. Mom
RE: Need some advice on my cur Thanks for posting your question Mom. I am in the same boat almost and all those responses helped me out a great deal too. I have the same problem with some great ratios and some almost full ratios due to great BT rates for the life of the transfers. Out of 7 cards, the worst three are 90%, 82% and 70% used. The rest are under 40% some at zero. I will try a few of the suggestions. I did just make a transfer of 1500 from a high balance card to a zero card just for that reason.... to lower the limit down and spread out that balance. Great post! Judy
