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  • I need some advice on how to pay off my credit cards and increase my credit score.

    I currently have 50k in savings and I owe $2500 on the discover card, $600 on capital one, $2000 on Chase, and $300 on Best Buy CC. I have only been paying only the minimum monthly balance but my credit is starting to sink and I need to know if I should just pay the balances off in full.

    Now I previously didn’t carry a balance but I recently moved which prompted some major expenses. So now my CC balances spiraled out of control and my credit dropped. if I pay them off today will my credit increase? Because I checked credit karma and my credit dropped -15 points.

  • Pay the s*** off wtf? Did you seriously need advice on this after explaining all that out to yourself

  • credit karma isnt 100% accurate and if you make your payments your score will bounce back in no time

  • Jan 6
    ·
    4 replies

    How the f*** do yall have 50k in savings at 21?

  • Just pay that s*** off man its a drop in the bucket

  • You should pay them off. Just continue to use them and pay the full statement balance monthly. For credit you need a history of spending as well as a history of actually paying on time which means spending on your cc but then for your own sake not incurring interest charges and just paying the minimum so paying the full statement balance.

  • Jan 6
    ·
    2 replies

    And you got bigger things to worry about - me robbing you

  • sherm at nite

    How the f*** do yall have 50k in savings at 21?

  • Jan 6
    ·
    1 reply

    You don’t have to pay them in full. But the minimum payment won’t cut it. You have the money to wipe this off but there’s nothing wrong with holding some debt as long as you’re servicing it in a timely and economic manner. Economic meaning for YOU - you’re paying more in the long run by only paying the minimum payments.

    Also it’s good for your credit score if you’re making the minimum payment at least twice (two separate payments) so start there at the very least. I used to work in private mortgages and for some reason that would push people’s credit score up over 3 months.

    Edit: bro I read the numbers again you have 50k and 5k debt? Pay that s*** off lmao

  • sherm at nite

    And you got bigger things to worry about - me robbing you

  • just pay it with your savings and it's done...?

    if you aren't doing anything with the 50k pay the debt since you're getting hit with interest I assume

    also you're losing points because of amount of usage you have on you cards most likely, credit score fluctuates month to month based on a variety of factors

    after you pay everything don't close the cards btw

  • i think for a good score you want to keep a balance of ≥30% available credit on each card

  • Jan 6
    ·
    1 reply

    I’m sorry but f*** all that s***

    What do you do for work?

  • Jan 6
    ·
    1 reply
    Fitz burner acct

    You don’t have to pay them in full. But the minimum payment won’t cut it. You have the money to wipe this off but there’s nothing wrong with holding some debt as long as you’re servicing it in a timely and economic manner. Economic meaning for YOU - you’re paying more in the long run by only paying the minimum payments.

    Also it’s good for your credit score if you’re making the minimum payment at least twice (two separate payments) so start there at the very least. I used to work in private mortgages and for some reason that would push people’s credit score up over 3 months.

    Edit: bro I read the numbers again you have 50k and 5k debt? Pay that s*** off lmao

    Alright so the minimum payment is $40 and my plan is to put $800 towards the discover and $800 towards chase. Then make two additional payments of $300. And I'm going to payoff the best buy
    and capital one balances.

    But I'm wondering when should I make the second payment? Should it be on the due date along with the first payment?

    Also thank you

  • Hire a financial advisor (read: me).

  • Oaklley

    Alright so the minimum payment is $40 and my plan is to put $800 towards the discover and $800 towards chase. Then make two additional payments of $300. And I'm going to payoff the best buy
    and capital one balances.

    But I'm wondering when should I make the second payment? Should it be on the due date along with the first payment?

    Also thank you

    Make both payments before the due date

  • Credit card + 50k in savings at 21 is crazy.

  • Jan 6
    ·
    1 reply
    Steak

    I’m sorry but f*** all that s***

    What do you do for work?

    I've been working multiple jobs since I was 18 and since I didn't have a social life, I was able to save a lot. Then the pandemic happened and I was able to work from home making scientific PowerPoints and work two in-person jobs.

  • There are a lot of differing opinions on debt that I respect I always say if you got it, pay it off as soon as possible.

  • Jan 6
    ·
    1 reply
    Oaklley

    I've been working multiple jobs since I was 18 and since I didn't have a social life, I was able to save a lot. Then the pandemic happened and I was able to work from home making scientific PowerPoints and work two in-person jobs.

    Dammmm good s***.

  • Jan 6
    ·
    2 replies

    post yall credit card numbers so we can compare them

  • Pay it off in full. Paying interest will cripple your credit score. You need to nip it in the bud NOW and find healthy credit lines.

    Keep all your card accounts open for now but moving forward, you need to be on top of that s***.

  • The advice is to pay it off now

  • sherm at nite

    And you got bigger things to worry about - me robbing you

  • Jan 6
    ·
    2 replies

    You have 50k in savings and youre complaining about having to spend $5k

    Nigga your debt is more than my entire life balance