Your Questions About How To Pay Off Credit Cards Fast

Thomas asks…

How can I pay off all my Credit Cards faster??

I have 7 CC and not that much credit limit so I cant transfer over any balances! I am tired of making only small payments. Please help me!!! I have to many inquires in my C Score PLEASE HELP!!

richmama answers:

If you can’t transfer them to a lower interest card…Then put them in order of highest to lowest interest and all the extra money beyond minimums goes to the highest interest rate, until that is paid off then the next highest and so on.

Mandy asks…

If I pay credit card off fast, how much can I improve my score?

I have 8 thousand in credit to settle. I was over my limit for a little while. Finishing school and recession hit at the same time for me. I just started a good job. If I get this paid off in 3 mos. how much will my score improve? Ideally, I’d like to no longer worry about my credit score for landing the next job but more immediately I don’t want it to impact my search for a decent apt.
my bank put me on a low interest program to pay off the debt

richmama answers:


Credit cards are evil.. You are paying 1600 a year to carry that balance.. And that’s not including overlimit and cash advance fees.

It can do nothing but help your score.. Provide you with some financial security.. (for emergencies like they’re supposed to be for).. And save you money!

To REALLY improve your score pay it off and close the card.. If you have an 8000 card it is automatically counted as 8000 of debt whether it’s maxed or not. If you can pay off 8 grand in 3 mos use the next 3 mos after that to save 8 grand and have cash for emergencies.. Get rid of the card altogether.. Use a prepaid visa for purchases online/convenience etc. In this economy you need to be smart with your money because a job can come and go in the blink of an eye

Helen asks…

How can I pay of 3 credit cards fast?

I’m trying to pay off my credit cards. This is how it looks:

Capital One – 22.90 APR – Balance $306.06 (monthly bill $15)
Visa – 23.24% APR – Balance $1,344.30 (monthly bill $39.00)
Wamu – 23.24% APR – Balance$400.86 (monthly bill $12).

Question: Should I transfer all of these into one? Or should I just continue to pay off each on their own?

Thanks for your answers!
Oops – *pay off

richmama answers:

Holy crap ! These are huge interest rates. Don’t pay these minimums – they are soaking you for $40 a month in interest alone. If you were to deposit this amount in a bank account, they would only pay you about $1.75 in interest. That’s how big of a scam they are running.

Here’s what to do:

1. If you purchased anything you can return for a refund, so right away, to get credits and reduce these balances.

2. Call up the 800# and ask for an interest rate reduction. If they say no, ask for the retention department. Tell them you will pay off or transfer the balance to a more friendly bank if they don’t reduce the interest rate.

3. Pay every last penny you can scrape up immediately to try to stop the stealing they are doing. Start with Wamu. They are the worst here. If you can’t pay it all in full, at least make the minimum on all, but put the most you can on Wamu.

4. If you can’t pay them all in any reasonable amount of time, then look for a balance transfer offer. I like the Pentagon Federal Credit Union. They offer a 2.99% balance transfer for the life of the balance transfer. If you transferred these balances to this rate, and paid $125 a month, you could be all paid off in just 18 months.

5. Get a second job – even if you only pull in $100 a week in a side job or weekend job, if you put all of this toward these balances, and transferred them to a lower rate account, you could be done in about 5 months.

6. Stop using these cards for anything. CASH only from now on, so it doesn’t get any worse. Do you realize that everything you buy with these cards is 25% more expensive. So, if you charge a $5 sandwich, you are really paying $6.25. If you buy a $10 movie ticket, it costs you $12.50. If you pay for a $40 oil change for your car, it is really $50? At least stop this from hurting you.

Good luck!

Jenny asks…

how fast does your credit score improve after paying off credit cards?

I have a good payment history with all my credit lines but I have a lot of revolving credit card debt. I plan on paying them all down to less than 25% balances in the next 3 months. My credit score is now in the low 600’s. If you have been in a similar situation how long did it take for you score to come back up to good level (ex. 700+) and any other tricks you used to improve it quickly. thanks

richmama answers:

Be careful of the “advice” you recive on these forums.

One poster recomended you close some of your credit accounts once paid down? (DO NOT DO THIS) that will hurt your score.

Keep all of your cards about 25% credit limit utilization, pay all of them on time, every time, you can expect to see an increase of about 10-15 points a month.
If you know someone that you trust, and that trusts you, IF they have great credit, they can add you as an authorized user on one of their accounts. (they do not need to give you the actual card).
Within a month, all of their positve credit history on their account will show up on yours, and depending on how “old” their account can expect possibly a 100 point boost. I have done this.
Good luck.

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