Paying off credit cards?? - LS1TECH

Log In 


Paying off credit cards??

Reply
 
Thread Tools Search this Thread
Old 03-12-2008, 10:05 AM   #1
TECH Fanatic
Thread Starter
iTrader: (14)
 
TN94Z's Avatar
 
Join Date: Sep 2003
Location: Tennessee
Posts: 1,311
Default Paying off credit cards??

I have two credit cards. The one with the highest balance is 11.99%. The second one is 0% until November. I have enough money to pay off the 0% card right now, but I know that you are supposed to pay off the higher rate cards first. Should I just save up until I get enough to pay off the high rate one, or go ahead and pay off the no interest card now and put that payment toward the high rate one?
TN94Z is offline   Reply With Quote
Old 03-12-2008, 10:09 AM   #2
TECH Junkie
iTrader: (4)
 
Tudds's Avatar
 
Join Date: Sep 2002
Location: Long Island, NY
Posts: 3,368
Default

Why not take what you have now and put it towards the high balance one?
Tudds is offline   Reply With Quote
Old 03-12-2008, 10:11 AM   #3
12 Second Club
iTrader: (8)
 
DirtyJohn's Avatar
 
Join Date: Jul 2004
Location: Vancouver, BC
Posts: 708
Default

I'm starting to warm up on the idea of transferring balances to the 0% cards to avoid interest payments. Then paying off is all principal payments. I'm in the market for a professional financial consultant though and I haven't seen one yet so take that for what its worth.
DirtyJohn is offline   Reply With Quote
Old 03-12-2008, 10:41 AM   #4
TECH Fanatic
Thread Starter
iTrader: (14)
 
TN94Z's Avatar
 
Join Date: Sep 2003
Location: Tennessee
Posts: 1,311
Default

Quote:
Originally Posted by Tudds View Post
Why not take what you have now and put it towards the high balance one?
That's my question. Should I put that money toward the high rate card or should I completely pay off the 0% card?

Quote:
I'm starting to warm up on the idea of transferring balances to the 0% cards to avoid interest payments. Then paying off is all principal payments. I'm in the market for a professional financial consultant though and I haven't seen one yet so take that for what its worth.
The only thing about doing this a lot is that it hurts your credit. Every time you apply for another card over short periods of time, your credit takes a good hit. That is what I read on a "good credit how to."
TN94Z is offline   Reply With Quote
Old 03-12-2008, 10:42 AM   #5
TECH Junkie
iTrader: (4)
 
Tudds's Avatar
 
Join Date: Sep 2002
Location: Long Island, NY
Posts: 3,368
Default

the 0% doesnt cost you anything, why would you pick that one over one that you have a higher balance and are paying money towards?
Tudds is offline   Reply With Quote
Old 03-12-2008, 10:47 AM   #6
Teching In
 
jay_dub87's Avatar
 
Join Date: Mar 2008
Location: Iowa
Posts: 15
Default

Quote:
Originally Posted by TN94Z View Post
I have two credit cards. The one with the highest balance is 11.99%. The second one is 0% until November. I have enough money to pay off the 0% card right now, but I know that you are supposed to pay off the higher rate cards first. Should I just save up until I get enough to pay off the high rate one, or go ahead and pay off the no interest card now and put that payment toward the high rate one?
depends. I have a goodyear card and its 0% interest and no payments for 6 months.... however..... if you dont pay that off within the 6 months, the interest (23%!!!!!) will come back and bite you in the ***....

I'd say pay off the 0 interest one.....
jay_dub87 is offline   Reply With Quote
Old 03-12-2008, 10:53 AM   #7
TECH Fanatic
Thread Starter
iTrader: (14)
 
TN94Z's Avatar
 
Join Date: Sep 2003
Location: Tennessee
Posts: 1,311
Default

Quote:
Originally Posted by Tudds View Post
the 0% doesnt cost you anything, why would you pick that one over one that you have a higher balance and are paying money towards?
The only reason is because I can pay it off completely, plus another no interest bill completely compared to just paying some on my high rate card. I don't care which one I do, I just want to make sure I am using the money in the best way.
TN94Z is offline   Reply With Quote
Old 03-12-2008, 11:04 AM   #8
TECH Resident
iTrader: (21)
 
Gimp98TNT's Avatar
 
Join Date: Mar 2002
Location: Bedford ,Ohio
Posts: 855
Default

Quote:
Originally Posted by TN94Z View Post
That's my question. Should I put that money toward the high rate card or should I completely pay off the 0% card?



The only thing about doing this a lot is that it hurts your credit. Every time you apply for another card over short periods of time, your credit takes a good hit. That is what I read on a "good credit how to."
I do that **** all the time and my credits Mint, i think a credit card company wrote that **** you read. LOL
Gimp98TNT is offline   Reply With Quote
Old 03-12-2008, 11:07 AM   #9
Teching In
 
jay_dub87's Avatar
 
Join Date: Mar 2008
Location: Iowa
Posts: 15
Default

my credit kinda blows.... Best Buy saw me coming lol
jay_dub87 is offline   Reply With Quote
Old 03-12-2008, 11:08 AM   #10
TECH Fanatic
Thread Starter
iTrader: (14)
 
TN94Z's Avatar
 
Join Date: Sep 2003
Location: Tennessee
Posts: 1,311
Default

I have seen the hit first hand. It won't destroy your credit but it will knock some points off. I have a high credit rating also...and I keep an eye on it. I have a family member that does the credit card shuffle and he showed me where it knocked his score down some.
TN94Z is offline   Reply With Quote
Old 03-12-2008, 11:09 AM   #11
TECH Fanatic
Thread Starter
iTrader: (14)
 
TN94Z's Avatar
 
Join Date: Sep 2003
Location: Tennessee
Posts: 1,311
Default

Quote:
Originally Posted by jay_dub87 View Post
my credit kinda blows.... Best Buy saw me coming lol
Speaking of best buy...I just bought a plasma flat panel with no interest for 3 years!!! Talking about borrowing money for free!
TN94Z is offline   Reply With Quote
Old 03-12-2008, 11:32 AM   #12
12 Second Club
iTrader: (8)
 
DirtyJohn's Avatar
 
Join Date: Jul 2004
Location: Vancouver, BC
Posts: 708
Default

Quote:
Originally Posted by TN94Z View Post
I have a family member that does the credit card shuffle and he showed me where it knocked his score down some.
Was it a temporary hit and how significant I wonder?
I've heard a couple people testify the drop is "negligible" and temporary.
Who knows, I should prob wait till I talk to a professional.
DirtyJohn is offline   Reply With Quote
Old 03-12-2008, 11:41 AM   #13
TECH Fanatic
Thread Starter
iTrader: (14)
 
TN94Z's Avatar
 
Join Date: Sep 2003
Location: Tennessee
Posts: 1,311
Default

Yeah, I would talk to someone because I am by no means a professional. It has been a while but I don't remember it being that big of a hit. I don't know about the temp thing...that could be true. I would like to know this myself.
TN94Z is offline   Reply With Quote
Old 03-12-2008, 11:44 AM   #14
Teching In
 
jay_dub87's Avatar
 
Join Date: Mar 2008
Location: Iowa
Posts: 15
Default

Quote:
Originally Posted by TN94Z View Post
Speaking of best buy...I just bought a plasma flat panel with no interest for 3 years!!! Talking about borrowing money for free!
damn!! 3 years? that's pretty impressive.
jay_dub87 is offline   Reply With Quote
Old 03-12-2008, 11:46 AM   #15
TECH Fanatic
Thread Starter
iTrader: (14)
 
TN94Z's Avatar
 
Join Date: Sep 2003
Location: Tennessee
Posts: 1,311
Default

I know. I couldn't resist. It was for 3 days a couple of weeks ago.
TN94Z is offline   Reply With Quote
Old 03-12-2008, 12:02 PM   #16
TECH Senior Member
iTrader: (5)
 
Join Date: Mar 2004
Location: Classified
Posts: 6,043
Default

just pay off the one with the highest balance.
TXZ28LS1 is online now   Reply With Quote
Old 03-12-2008, 12:03 PM   #17
On The Tree
iTrader: (2)
 
z28boy's Avatar
 
Join Date: Apr 2004
Location: grandrapids mi
Posts: 194
Default

I would Give Dave Ramsey a call he seems to have the best advice when it comes to those dam credit cards.
z28boy is offline   Reply With Quote
Old 03-12-2008, 12:35 PM   #18
Banned
 
Join Date: May 2007
Posts: 886
Default

To a point. Debt to income, the amount of credit you have, like a 25K line of credit with a 0 balance isn't good. Banks are looking for a history. A history of having credit and paying your bills on time.

AGSAOMAHD's
Jakes Dad is offline   Reply With Quote
Old 03-12-2008, 12:55 PM   #19
TECH Regular
iTrader: (3)
 
FirehawkNS's Avatar
 
Join Date: Mar 2003
Location: Charlotte (Lucia)
Posts: 401
Default

Put it towards the one with interest. And put what you have now, don't wait till you have enough.
FirehawkNS is offline   Reply With Quote
Old 03-12-2008, 02:15 PM   #20
TECH Fanatic
Thread Starter
iTrader: (14)
 
TN94Z's Avatar
 
Join Date: Sep 2003
Location: Tennessee
Posts: 1,311
Default

Thanks guys. I am going to go ahead and pay it on the high rate card and get it paid off. I should have it paid off in about 2 months. At least that high rate will be gone. Thanks again. Some good advice here.
TN94Z is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off



All times are GMT -5. The time now is 08:53 PM.