 How do you build credit from nothing? |
| A friend of mine has no credit...no bad, no good. So, no one will loan her anything. How does she go about building her credit so she can get a credit card. She's applied for cards and cell ... |
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 Can I buy a new car with my credit??? |
I'm turning 22, and my credit history is a little over 2 years...
I have like 4 credit cards...and macy, victoria secret, best buy, banana republic credit cards...so you can say i have ... |
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 What are some of the options that I have in dealing with my debt problems (I'm on limited income)? |
| This is the situation: I have a physical disability, and am on limited income (Social Security Disability). I had a friend (at least I thought he was my friend; he proved otherwise) who was ... |
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 How do I get out of an Auto Loan? |
| I have a loan with my ex. She is hounding me to get her off it. I can't refinance without a co-signor and no one will help. I can't sell it because I need a car and can't pay the ... |
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 Refinance Loan I need to reduce my mortgage payment? |
| I need to know the best mortgage company that will give me a good deal to refinance my mortgage TO FIXED RATE because my adjustable rate has been increased. also i don't have any money for ... |
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 Can you take a walmart giftcard and use it to buy another giftcard? |
| Like could I go to walmart and buy an itunes giftcard with my walmart giftcard?... |
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| I had a credit card swiped from my room and used, two charges were for software and a people search, 4 gas station, 1 grocery store, the card has been reported and all charges were reversed and ... |
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 Some advice on which credit card to get? im 21 and don't need credit but want to build good credit for future? |
im 21, about to graduate in next few months. (UK)
i dont need a credit card but i would like to get one in order to build good credit history, ready for the future when i will need to apply for ... |
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 If i use an credit card to buy liquor? |
| when you fill out a credit card you put your information and date of birth, if the credit card belongs to someone under 21 and you want to buy liquor over the internet can they see that the card ... |
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 I have no credit! How do I get good credit fast? |
| Can you tell me what I should do step by step in order to have good credit fast? I have no credit right now and i wish to have good credit in about 1 year.... |
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 I want to get a credit card...? |
| I've never had one before, I do not pay for anything (car insurance, house payments, etc.) I have NO credit history what so ever. Which card will accept me and have either low annual fee's ... |
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 What do I do? |
| I bought some dvds on eBay and they were fake! So I contacted the seller and he told me to send them back and he would give me my money back, but he didn't! Didn't pay through paypal... W... |
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 Is it OK to pay a settlement amount on credit card debt? |
| I am paying off my cards which are over 5 yrs old, and they're giving me settlement amnts to pay them off. Most of the balance is late fees, my credit is slowly going up. Am I going to have ... |
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 Do credit card companies feel guilty about 20% interest? Should they? |
On the one hand, adults have to make good decisions for themselves and the credit card company isn't responsible for their customers' spending habits.
On the other hand, credit ... |
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AlisonFox(y) | Which should I pay off first? |
The credit card with the LOWEST balance or the credit card with the HIGHEST interest rate?
I always thought you should go after the one with the highest interest rate first so that you don't end up paying TONS more than what you actually charged, but my dad thinks you should start with the card that has the lowest balance so you can get rid of it faster. Who is right? |
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sanjose.ellis
 |
Conventional Wisdom & experts like Suze Orman says that you will get the most savings from paying off the highest interest rate off first.
However I believe some financial experts likes the positive mental effect of paying off small debt completely & recommend your dad's suggestion.
I would pay the highest % first & try to move as much debt as possible in to the lowest rate possible.
The main goal here is to get in the habit of increasing your savings rate paying down your debt & not increasing it. |
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Mike
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Father knows best.
You should payoff the lowest balance first. Once that is paid off, use the extra money and attack the next lowest.
The main reason for this is psychological... you see yourself getting out of debt faster, and get more excited about it... you are more likely to stick to your plan to get out of debt.
And if you are only in debt for 1-2 more years, interest rate wont make much of a difference anyway. |
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stephenweinstein
 |
Highest interest rate if you are trying to reduce interest payments as much as possible.
If balance transfers are not allowed and the goal is to have one card on which you pay the entire balance each month, so that you can make new purchases without paying interest.
However, if you really want to get rid of one of them fast, transfer the entire balance to the other.
Assuming that the credit limits are high enough, transfer the entire balance from card with the highest rate to the card with the lowest rate. That way, you reduce your interest payments and you get rid of a card immediately. |
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mcmufin
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Usually, it is the highest interest rate card first, then the next highest, etc. In the long term, that will save you the most money.
However, there are reasons to start with the lowest balance credit card. If you are constantly short on money or just barely getting by, paying the lowest balance first will allow you to keep more money in your pocket sooner (the lowest balance card will be paid off quicker, so your total monthly payments decrease faster).
Only do this if you cannot afford to put money away for an emergency. If you can still pay your bills and have money left over, then pay off the highest interest rate cards first.
Before you devote extra money to your cards, try to save up a few months expenses in case of an emergency. It will delay your paying off your bills, but if something bad happens, you will have the money to ride it through. I didn't have an emergency fund when I was laid off. I went through my retirement accounts before I found a new job. |
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bpl
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From a money standpoint, you should hit the one with the highest rate. For peace of mind sake, you may want to pay off one, and that may give you a sense of relief that you are making progress, and then start tackling the next one. |
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Bill Brasky
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I would go with the one with the higher interest rate. Its actually
not a bad thing to have a balance on a card , it actually helps
your score to keep the balance at around thirty percent, say if your limit is $1000.00 you want the balance to always be at Around $300.00. |
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Peggy K
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Well, I'm not sure there's really a "right" and "wrong" way to do it. From the way you've phrased your question, it would seem that the card with the highest interest rate is also the card with the highest balance, which may make it harder to pay off first.
I believe if I had credit cards, I'd take myself a look around and see if I could find a new card that has a low or no interest period for the first year, and see about transferring the balance from the card with the highest rate to that, being sure that the APR will be lower than the rate on the existing account, once the grace period has passed.
Then, work on the card with the lower balance, paying that off as soon as possible, while maintaining the payments on the other card, and then use the money that would have gone to the paid card along with the regular payment on the second card, cutting both cards into little shreds once they're fully paid. |
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Phoebe Finch
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Pay off the higher interest first. What your being charged for interest per month on the high rate comes close to canceling out the minimum payment on the card. Make the minimum payment on the lower interest cards and put extra money towards the higher interest cards. |
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ThatGuy!
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Pay the one with the highest interest rate. |
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ANGEL Baby
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Your father knows best!
Pay off the lowest card first then apply those payment amounts to the payment amounts on the other card!
Best Wishes |
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