Hello! Long time user, got my mortgage with the help and support of this site and years later I’m back to rebuild my credit scores so we can get a new car. Okay, so we bought our house in 2009, got a new car, opened lots of cc acounts (Discover, Chase, Amex, etc.) then went through a tough time 2011-2012 got behind on most accounts and decided to close all but my Bank Of America cc and went to a credit counseling service to help get rates down so we could pay off our $ 20,000 of debt. We are at the end..I can see the light at the end of the tunnel…I just need to know in what order we should pay the last few things off.
Here’s where we are at~
My CS are:
EQ 635; TU 663; EX 650
My Debt left:
Discover (closed) bal $ 1010/ $ 2700 limit
Capital One (closed) bal $ 101/ $ 500 limit (was HSBC but taken over by Capital One over a year ago)
Bank Of America (open) bal $ 2450/ $ 2500 limit
Credit One (open) bal $ 450/ $ 500 limit
My Husband’s CS:
EQ; 640; TU 610; EX 605 (EQ score updated yesterday and went up 22 points b/c the bal on credit one is down $ 194 so I’m hoping TU and EX will go up soon too)
My husband’s Debt left:
Discover (closed) bal $ 829/ $ 2700 limit
Chase (closed) bal $ 398/ $ 600 limit
Credit One (open) bal $ 520/ $ 700 limit
Home Depot cc account is listed as a charge-off in the revolving account section and listed in the collections~ balance is $ 1359 They have sent us the final offer to settle before they take “possible legal action”. I can pay in full (settle) for $ 950; or make 6 payments for a total of approx $ 1000 split up into monthly payments; or 12 months of payments approx $ 1100 of payments.
So as I mentioned we had other loan accts; cc accts that we paid off in addition to the ones listed above, this is just what we have left to pay. We need to buy a new car by the end of August (at the latest) and I want our scores to be up as high as possible. We have our mortgage, a car loan that will be paid off in less than 9 months (and each have 3 previous car loan on our CR).
I was going to pay off the Capital One $ 101 bal~mine; Chase $ 398 bal~husband’s; and as much of the Credit One accts as possible this month. I was also going to set up a settlement offer with the collection co that has his Home Depot acct….however, I am really confused about what I should/shouldn’t do…my previous goal was to pay off, based on getting rid of the debt…but we now need to focus on scores and getting ready for a car loan. When I ran the FICO simulator last month it led me to believe I could not get my husband’s scores over 620; but I paid $ 200 of one of my husband’s accounts and his EQ score shot up to 640~great! but I need a plan for the next 2 months. I can’t pay everything off and have $ 1000 for a down payment.
So if YOU were in my shoes…what advise would you give me?? I need HELP! Thanks so much