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Pay off both of them. Don't close the accounts. Closing them could affect your credit history, and your FICO score.
Knowing your spending habits, in the future pay your credit cards IN FULL every month. That way they will not accumulate.
I cut the $743 one up already, and actually it may have been a mistake but.. on the card that has a 10.25 interest rate.. it did have a $4500 credit limit, but I'm scared and don't trust myself with it. So I called the cc company and asked for a credit reduction... I wanted it brought down to a $2000 limit and they did it for me.
I know some of you will say that's stupid, it's hurts your credit score ect. But I really don't care. At the end of the day I feel like a weight has been lofted off of me now that it only has a $2,000 limit.
I've learned my lesson about cc debt. Won't ever happen again.
I cut the $743 one up already, and actually it may have been a mistake but.. on the card that has a 10.25 interest rate.. it did have a $4500 credit limit, but I'm scared and don't trust myself with it. So I called the cc company and asked for a credit reduction... I wanted it brought down to a $2000 limit and they did it for me.
I know some of you will say that's stupid, it's hurts your credit score ect. But I really don't care. At the end of the day I feel like a weight has been lofted off of me now that it only has a $2,000 limit.
I've learned my lesson about cc debt. Won't ever happen again.
It probably didn't hurt your score too much. Where it hurt is the payments you made.. It probably washed out the gains.
Let's say both cards had 4500 limits.
You went from 1900+743=2643 out of 9000 used, which is 29.4% utilization.
Now, you're at 1900/6500 used, which is 29.2% utilization.
So, your credit score should basically be unaffected. However.. Had you NOT had the limit lowered, you would be at 21% usage.. Which. Would have improved you a small number of points.. 20-ish, maybe?
You WANT to be under 10% usage.
Just to give some details.. I've had an 813 credit score for quite a while.. In November, I took out a $2500 personal loan for house repairs. So, i've added debt and created a hard pull on my credit there. I paid that loan off in early February.. I also requested a credit increase on my credit card.. They took it from $5k to $13k.. So, that's another hard pull.
My credit score went from 813 down to in the 780's.. And has rebounded.. I pulled it on Friday and it's back up to 819. So, things change really quick.
If you have reliable income stream just pay them off. No reason to have much of an emergency fund if you're carrying credit card debt and have a reliable income stream. Since it's going
... unless you're on a 0% APR promotion, which the OP admittedly is not.
Man you have more control than I do... I wouldn't trust myself with a 13K credit card.
Time. I'm guessing here that you're likely in your early to mid 20's?
I was in your boat at that time. Now, remember, this is 'back in the day'.. Mid 90's.. I had a $1000 limit credit card, it was constantly maxxed out... I wound up cutting it up, paid it off.. Closed the account.
Then, in '97, I bought my first new vehicle.. Perfect record on the payments. Bought another in '05, perfect record.. Bought a house in '07.. I'm so far ahead on payments for it.. In between there somewhere, I got a card again, when I thought I was responsible enough.. And I haven't carried a balance on it for over 2 years.. I buy all my gas on it.. I'm due to get about a $100 rebate for that next month.. Have a hundred or so in cash back built up on it.. That's all free money.
Now.. The DOWNSIDE of having really good credit is that I get massive numbers of mailers. They all go right in the trash. My CC interest is right around 10% with no annual fee (USAA World Mastercard) and nothing beats that. Nothing. 9.15% interest.. Prime + 5.65.
But, the part you will learn is you look at your bank account and think "This is how much money I have". You don't think "I have $100 in my bank account and $5000 available on my credit card".
I mean, I've got $50k or so in various 401ks and IRAs.. But.. I don't think of that as money that I have.
Man you have more control than I do... I wouldn't trust myself with a 13K credit card.
I don't know how old you are, but it's good to learn self discipline at any age. If you want to make any kind of changes in your life, it’s self-discipline that will help you reach your goal.
Hiding the toys is something for children. As an adult you get many temptations, so you need to learn how to control them. You can do it by changing your habit and having a motivation.
Search the web - there is a help...
Here for start: Eliminate Financial Problems Through Self Discipline
Good luck!
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