Just checked my credit card statement ...

[princesscinderella]

You say you have raised your credit score over 100 points you may be eligible for a better credit card now with a lower interest rate and no annual fee where you can transfer all the balances. Sometimes they will give you a promotional intro lowered interest rate to open the new card too for a fixed period of time. I would definitely get rid of the "protection fees" on all your cards its just a way to make extra money off of you and will offer not much protection on a card that you have a $700 limit on. Definitely don't keep a $1 balance on any card you will always be charged interest which is what you are trying to get away from. The only thing a card needs to stay open is a small charge every now and then and it to be paid in full each month when you get your statement. You can also send money towards your credit card balance at any time, it does not only have to be once the statement arrives, lowering your average daily balance does help lower your interest when calculated at the end of the billing cycle.
I think you need to read a lot of different financial fitness books from a variety of authors and take the pearls of wisdom that best fits your situation as the advice they give is not a one size fits all and you can use your newfound knowledge to forge a path to financial literacy and stability.

 

[princesscinderella]

Just to update. I just did a little spreadsheet by sitting down and looking at all 3 cards. I just wanted to know exactly what I'm paying. So dthis may change what I need to pay towards/off first.

CC1
CL - $300;
Monthly Fees - $0 (no credit protection fee either);
Annual Fees - $0;
Interest Rate - 30.74%;

CC2
CL - $500;
Monthly Fees - $0 but it has credit protection fee each month;
Annual Fees - $99.99 (billed monthly at $8.25)
Interest Rate - 29.24%

CC3
CL - $700;
Monthly Fees - $12.50 monthly fee + credit protection fee;
Annual Fee - $49;
Interst Rate - 35.90%

I would like to keep CC3 open. It has the highest credit limit, but the problem is it also has the most fees and highest APR. CC1 has lowest CL but no fees. So that's where my conundrum stands. Should I pay off CC1 or put all $300 towards CC3 and just keep paying monthly minimum payments on the others?

I would pay off CC3 and close it as its the most expensive interest wise and with fees, that's why they gave you a higher limit as they keep you locked into paying all the fees by keeping you overextended where you can't pay it in full each month. I would then focus on keeping cc1 & cc2 which have a combined $800 charging limit each month if you are able to pay it in full each month. I would call CC2 and get rid of the protection fee and say you don't need it, I would also ask them if they have a no annual fee credit card that you could switch over to instead. CC1 is the winner of all three as you have no fees and your is only slightly higher than #2, you could also call and ask to see if they would be willing to lower your interest rate since you have a good history of repayment and being ontime with them (hopefully). Remember once you start paying your CC bills in full each month it doesn't matter what the interest rate is as you won't get charged it, but the fees will still be there even with full payment each month.

 

[robinb]

First of all, congratulations on raising your credit score 100 points! That's pretty awesome.

I agree with @princesscinderella in everything she said. Pay off CC3 first, don't carry a balance (eventually) on the other two, get rid of the scummy protection fee and see if you can get a credit card with no annual fee from one of your credit card companies and transfer the balance.

I also think you really have to look at WHY you need credit cards. Is it to raise your credit score so you can rent a home easier or eventually get a mortgage? Is it to have emergency access to funds? Is it to pay for stuff on time rather than right away? IMO, the fist one is the most valid, followed by the second one and the last one the least valid of all.

 

[Nettlelondon]

You say what the credit limits are - are you actually maxed out on the cards? If not what it the actual balance on them at the moment?

 

[WDW_fan_in_TX]

Thanks. To answer the last part, it's a combo of all 3. My credit was bad and when we moved form East Texas to DFW (moved for our jobs), we had so much trouble getting into a place. We had to live in a hotel for 2 months because we had bad credit and couldn't get approved (we had enough cash from selling our house to pay for 2 years of rent, but nobody would give us a chance). So trying to build my credit score to make it easier to get a house/loan, lower payments (I'm currently paying 26% APR on my car payment). Secondly, we want a card in case an emergency happens, i.e. our fridge goes out, the AC unit goes out, etc. We don't so much want the extended time to pay for every day things (eating out, trips). Instead, we want to have it in case we have to purchase something big that we can pay out over time.

First of all, congratulations on raising your credit score 100 points! That's pretty awesome.

I agree with @princesscinderella in everything she said. Pay off CC3 first, don't carry a balance (eventually) on the other two, get rid of the scummy protection fee and see if you can get a credit card with no annual fee from one of your credit card companies and transfer the balance.

I also think you really have to look at WHY you need credit cards. Is it to raise your credit score so you can rent a home easier or eventually get a mortgage? Is it to have emergency access to funds? Is it to pay for stuff on time rather than right away? IMO, the fist one is the most valid, followed by the second one and the last one the least valid of all.

 

[disneydreamer1980]

My DD who’s in college got a Chime credit builder card in her name. She has no job, her only bill in her name is her phone which we pay for her, and somehow she has a 780 credit score just from using that card and her phone. I don’t understand it, the way credit works is so stupid. She recently applied for and got TWO credit cards each with a starting $5,000 credit limit. I have no clue how that was possible, she’s young, no job, hardly any credit history. She says it’s the chime card. Insane. I cautioned her against using them and building up debt (and she says they’re for emergencies only) but she’s an adult now, so that’s all I can do.

 

[focusondisney]

Just to update. I just did a little spreadsheet by sitting down and looking at all 3 cards. I just wanted to know exactly what I'm paying. So dthis may change what I need to pay towards/off first.

CC1
CL - $300;
Monthly Fees - $0 (no credit protection fee either);
Annual Fees - $0;
Interest Rate - 30.74%;

CC2
CL - $500;
Monthly Fees - $0 but it has credit protection fee each month;
Annual Fees - $99.99 (billed monthly at $8.25)
Interest Rate - 29.24%

CC3
CL - $700;
Monthly Fees - $12.50 monthly fee + credit protection fee;
Annual Fee - $49;
Interst Rate - 35.90%

I would like to keep CC3 open. It has the highest credit limit, but the problem is it also has the most fees and highest APR. CC1 has lowest CL but no fees. So that's where my conundrum stands. Should I pay off CC1 or put all $300 towards CC3 and just keep paying monthly minimum payments on the others?

Personally, I’d keep card #1 with no annual fee. Card #2 & 3 most of your minimum payments are just going towards annual & monthly fees… just making money for the lender & keeping you in debt. If you get those 2 cards paid off & closed, you should be able to get your credit limit increased for card 1.

 

[focusondisney]

My DD who’s in college got a Chime credit builder card in her name. She has no job, her only bill in her name is her phone which we pay for her, and somehow she has a 780 credit score just from using that card and her phone. I don’t understand it, the way credit works is so stupid. She recently applied for and got TWO credit cards each with a starting $5,000 credit limit. I have no clue how that was possible, she’s young, no job, hardly any credit history. She says it’s the chime card. Insane. I cautioned her against using them and building up debt (and she says they’re for emergencies only) but she’s an adult now, so that’s all I can do.

How long has the phone been in her name? And was she an authorized used on any of your credit cards? I got an Express store card when my daughter was in high school. I made her an authorized user & she had a card in her name. Basically, just having her on my account as an authorized user gave her a good credit score, even tho she had no job & no other credit cards or bills. So you paying her phone bill probably had a lot to do with her score.

 

[robinb]

Thanks. To answer the last part, it's a combo of all 3. My credit was bad and when we moved form East Texas to DFW (moved for our jobs), we had so much trouble getting into a place. We had to live in a hotel for 2 months because we had bad credit and couldn't get approved (we had enough cash from selling our house to pay for 2 years of rent, but nobody would give us a chance). So trying to build my credit score to make it easier to get a house/loan, lower payments (I'm currently paying 26% APR on my car payment). Secondly, we want a card in case an emergency happens, i.e. our fridge goes out, the AC unit goes out, etc. We don't so much want the extended time to pay for every day things (eating out, trips). Instead, we want to have it in case we have to purchase something big that we can pay out over time.

Ok. Fair enough. As your credit gets better you can swap out cards for ones that don’t cost you so much money. Once you pay off your cards, you can make a two pronged approach to get out from under that absolutely usurious car loan by paying more per month (check there is no pre payment penalty) and then set aside some money for emergencies. Good luck!

 

[WDW_fan_in_TX]

I just got off the phone with both CC2 and CC3. I canceled the credit protection on both cards. That'll save roughly $20 per month. I also talked to CC3 about the fees. They say the annual fee for the first year was $175. This year it was $200. They charged me $50 in July for a 1-time fee then take the other $150 out in 12 monthly fees of $12.50 apiece. I asked how they could get away with it, and he had no answer. I also asked the payoff amount, and I got that. I went to pay that amount online, but it would only let me pay a certain amount. So will pay it down to 1 penny left on the balance, lol. Not sure how to take care of that since it wouldn't let me pay more than it showed online. I guess I will have to pay the difference when the regular payment is due.

 

[focusondisney]

I just got off the phone with both CC2 and CC3. I canceled the credit protection on both cards. That'll save roughly $20 per month. I also talked to CC3 about the fees. They say the annual fee for the first year was $175. This year it was $200. They charged me $50 in July for a 1-time fee then take the other $150 out in 12 monthly fees of $12.50 apiece. I asked how they could get away with it, and he had no answer. I also asked the payoff amount, and I got that. I went to pay that amount online, but it would only let me pay a certain amount. So will pay it down to 1 penny left on the balance, lol. Not sure how to take care of that since it wouldn't let me pay more than it showed online. I guess I will have to pay the difference when the regular payment is due.

That’s great, good for you! They were really taking advantage of you.

 

[princesscinderella]

I just got off the phone with both CC2 and CC3. I canceled the credit protection on both cards. That'll save roughly $20 per month. I also talked to CC3 about the fees. They say the annual fee for the first year was $175. This year it was $200. They charged me $50 in July for a 1-time fee then take the other $150 out in 12 monthly fees of $12.50 apiece. I asked how they could get away with it, and he had no answer. I also asked the payoff amount, and I got that. I went to pay that amount online, but it would only let me pay a certain amount. So will pay it down to 1 penny left on the balance, lol. Not sure how to take care of that since it wouldn't let me pay more than it showed online. I guess I will have to pay the difference when the regular payment is due.

Do not leave one penny left on the balance as they will charge you interest on that one penny. Do the opposite and pay it one penny more if you want to have something on the card let it be a positive balance not a negative one. You will most likely you may get one more bill for interest on the difference of days when it’s due vs paying it off in full if you have always had a balance on the card. Glad you were able to get the protection fees removed.

 

[WDW_fan_in_TX]

I don't want to leave a penny on it, but I had no choice. It wouldn't let me pay more than the balance when I went to pay online.

Do not leave one penny left on the balance as they will charge you interest on that one penny. Do the opposite and pay it one penny more if you want to have something on the card let it be a positive balance not a negative one. You will most likely you may get one more bill for interest on the difference of days when it’s due vs paying it off in full if you have always had a balance on the card. Glad you were able to get the protection fees removed.

 

[starry_solo]

I've sold enough cards to either pay off CC1 (the lowest CL) or pay down one of the other 2 (CC2/CC3). Not sure which way would be better to go. Pay half of what's left on CC1 and pay the rest onto CC3, which has the highest CL but also the highest balance, thus saving interest, or just use it all and pay off CC1 and leave myself with a $0 balance. Then I can just charge maybe 1 thing to it each month, pay it off and help my credit that way.

Also, if it's better to pay it off, is it best to pay off at any point in the month? Or just pay it off on the day it's due? Or does it matter?

Pay off credit card #1 and stop using it.
Then move onto one of the other two.

 

[starry_solo]

I don't want to leave a penny on it, but I had no choice. It wouldn't let me pay more than the balance when I went to pay online.

Send them a check for one cent. Yes it will cost you a stamp but it will cost them more money to process

 

[princesscinderella]

I don't want to leave a penny on it, but I had no choice. It wouldn't let me pay more than the balance when I went to pay online.

You should be able to send them a check for the balance through online bill pay from your checking account vs paying directly on their site. They are obviously predatory if they won’t let you pay the balance off completely.

 

[WDW_fan_in_TX]

We don't own any checks. Haven't written a check in more than a decade. I can pay $5 and get a cashier's check. But I don't want to give them anymore money than I already have to.

You should be able to send them a check for the balance through online bill pay from your checking account vs paying directly on their site. They are obviously predatory if they won’t let you pay the balance off completely.

 

[WDW_fan_in_TX]

I paid off CC3 first since it had the highest APR and highest fees ($200/year annual fee on a $700 credit limit card). CC1 has no fees and the lowest APR.

Pay off credit card #1 and stop using it.
Then move onto one of the other two.

 

[WDW_fan_in_TX]

How the heck do I get this payment made this card closed? I'm so frustrated. I've called an hour ago to get the exact balance, and I've tried to pay the balance due right now. It's one more penny than it shows I owe online. This is the message I get.

"Due to your current balance and pending payments your payment can not exceed $684.74."

I don't have any pending payments though. That's what's confusing me. I just want this stupid thing done, and I don't want to be charged another $12.50 monthly fee or any more interest.

 

[trenty]

How the heck do I get this payment made this card closed? I'm so frustrated. I've called an hour ago to get the exact balance, and I've tried to pay the balance due right now. It's one more penny than it shows I owe online. This is the message I get.

"Due to your current balance and pending payments your payment can not exceed $684.74."

I don't have any pending payments though. That's what's confusing me. I just want this stupid thing done, and I don't want to be charged another $12.50 monthly fee or any more interest.

Try paying the $684.74. Then go online tomorrow and pay the few cents that will be there. Then call and close.
If that doesn't work, see if they will take a payment over the phone for the exact amount owed and then close the card in the same phone call.

Last resort - I believe you can close a card with a balance - you still have to pay what you owe. Call to close the card. That should stop the fees.