Comments on: Debt Reduction Strategy : Is Improving Your Credit Score is a Priority or Reducing Your Debt Quickly http://www.askmrcreditcard.com/creditcardblog/debtreductionstrategy/ Latest Credit Card News, Reviews and Information Thu, 20 Nov 2008 09:11:40 +0000 http://wordpress.org/?v=2.6.3 By: Ray http://www.askmrcreditcard.com/creditcardblog/debtreductionstrategy/#comment-8903 Ray Mon, 16 Apr 2007 15:50:13 +0000 http://askmrcreditcard.com/creditcardblog/debtreductionstrategy/#comment-8903 Sorry about that. I clicked trackback by mistake. However, I do plan on posting about this article on my site shortly. Sorry about that. I clicked trackback by mistake. However, I do plan on posting about this article on my site shortly.

]]> By: Ray http://www.askmrcreditcard.com/creditcardblog/debtreductionstrategy/#comment-8899 Ray Mon, 16 Apr 2007 14:10:48 +0000 http://askmrcreditcard.com/creditcardblog/debtreductionstrategy/#comment-8899 ? Bringing utilization down to 25% on each card will help. The fine points of paying off the credit cards when the 0% runs off is different for everyone. If you have 4 cards that all have a 0% balance that runs out in 12 months you obviously you have a few options. Max out each CC and utilize the full credit line possible, but knowing that this will reduce your credit scores as your utilization would be above 90%. You would pay off the CCs before the 12 months via your money market account/savings etc. The other option would be to utilize 25% or so of each card, thus not hurting your score as much and allowing for future loans or lines of credit during that period. If one the other hand you signed up for multiple cards at a staggered interval, then there wouldn't be a need to worry about paying off the CC balances all at one time. However you decide to do it, your score will be hurt, but it's only temporary. ?
Bringing utilization down to 25% on each card will help. The fine points of paying off the credit cards when the 0% runs off is different for everyone. If you have 4 cards that all have a 0% balance that runs out in 12 months you obviously you have a few options.

Max out each CC and utilize the full credit line possible, but knowing that this will reduce your credit scores as your utilization would be above 90%. You would pay off the CCs before the 12 months via your money market account/savings etc.

The other option would be to utilize 25% or so of each card, thus not hurting your score as much and allowing for future loans or lines of credit during that period.

If one the other hand you signed up for multiple cards at a staggered interval, then there wouldn’t be a need to worry about paying off the CC balances all at one time.

However you decide to do it, your score will be hurt, but it’s only temporary.

]]> By: Ray http://www.askmrcreditcard.com/creditcardblog/debtreductionstrategy/#comment-8813 Ray Sun, 15 Apr 2007 06:03:56 +0000 http://askmrcreditcard.com/creditcardblog/debtreductionstrategy/#comment-8813 Don't you mean reducing the total utilization rate to 25-30 percent? Bringing utilization down to 25-30 percent per card wouldn't help if - like most people - you have multiple cards. With the 0% balance transfer, the rate period needs to be long enough for the card holder to pay off the balance otherwise they will get hosed financially when the teaser rate ends. Don’t you mean reducing the total utilization rate to 25-30 percent? Bringing utilization down to 25-30 percent per card wouldn’t help if - like most people - you have multiple cards. With the 0% balance transfer, the rate period needs to be long enough for the card holder to pay off the balance otherwise they will get hosed financially when the teaser rate ends.

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