I just payed off 2 credit cards....

[naturalmama]

I wrote the checks out today and we're closing those accounts too. Yea!!! Only one more to go. It feels sooo good. LOL I'm just ashamed that it took as long as it did.

This last one is a biggie, but we should have it payed off in a year.

We stocked up on groceries from the HFS last night and I'm buying 3 new milk goats this next weekend. Our van needs transmission work and......... thus the tax refund is gone. Did I mention it was deposited this morning. ROTFL

Aileen

[mamabear]

Good for you!

I am hoping to be able to say the same thing when we get our tax refund. I have $1100 or so to pay off on one card, then I'm transferring another card to that one at 2.9%. Then we'll have two credit cards but at 1.9% and 2.9% that we'll pay off as I make money doing massage. The other two will be closed out. The best part is we're finally "making it" and won't have to keep getting into debt just for our monthly expenses; what a vicious cycle that is.

[LatteLover]

Congrats!

Just be careful closing out your accounts as it will negatively affect your credit score.

Emily

[naturalmama]

I figured that it might drop our credit score a bit, but if we have them, they get used oe way or another so I figure it will be worth it.

Do you have any idea how much it might drop them? My credit score is like 825 if that helps.

Thanks,
Aileen

[Momof6]

That is excellent!!

Our tax return sat in our account for a whopping 2 days before I wrote a check out for it and sent it off to the cc company.

We racked up so much debt from our son getting really ill last June.....but putting our tax return on the one cc that we own cut the balance to less than half of what it was just last week!!!

It sucks because we were debt free (other than mortgage and student loan) and then our son got sick, another got diagnosed with a chronic disease and we racked up debt so fast......We even had 10K in savings before the medical hit us. We thought we were ready for a problem like that but it wiped out everything. I'm just thankful it did not break us, KWIM? I read that more and more middle class families are in bankruptcy now due to even a minor medical crisis.

It should take us until Dec. 2005 to pay the rest of it off.

I think next time I get a 0 or 2% interest rate cc offer in the mail on balance transfers that I may read the fine print closely. Our current (and only ) cc it at 9.25% and is variable.

What have you all read about transferring remaining balance to a low interest cc while paying it off? Other than the common sense stuff like not charging more on it etc...etc....

We really really want to buy some land out of town and build our dream home in a few years, so I'm lurking on this board more than usual looking for any extra tips that we may not be currently doing.

I think this was our last year for a good sized refund since dh changed his withholdings so we will have our money each paycheck rather than lend it to the gov't interest free until tax time.

Michelle

[peanutsmom]

Good Job!

[mamabear]

The main thing I have read about transferring balances at a low fixed rate is that you had better pay on time or else it will rocket up to a very high rate, like 19 or 24%.

And if you have any balance on the card when you transfer it, that gets paid off last. So I have $1100 at 12.9%, if I transfer $1000 at 1.9% I am paying off the 1.9% first then the 12.9%. So it's best to have a card with a zero balance that you have had for a while, that gives you a transfer opportunity. Or pay off the higher-interest balance first, then transfer.

I have a good system in place for paying on time so I'm happy with doing it this way.

[LatteLover]

I can't tell you for sure how much it will drop them but I have read (Suze Orman and such) that it can be pretty significant. The problem is a huge part of your FICO is your available credit. But, I do hear you on using them if you leave them open. The fact is that you do need some credit open. I would call the companies and have them lower your credit lines.

Emily

[xt]

If your score is 825, you have pleeeeenty of room for a little drop. Sheesh. The rest of humanity WISHES it had a score like that.

I think you can check different scenarios for what will happen to your score at myfico.com.

[Momof6]

Can you get the score for free like you can get credit reports for free now?

I got a copy from one of the credit agencies and there was one inaccuracy on it that I am challenging. But these don't have the number credit score.

Our banker told us what it was when we bought a new car this past summer, but I wonder now what it is since a few things have changed since then for us.

Thanks for the info on transfering......I'm glad I held off and followed my gut on no transfers. We'll just keep on the roll-down debt reduction method we've been using for a few years.

Oh, we did close off credit cards as we paid them off...until we got down to just this one card. (had it paid off but then had the medical crisis....long story) We did/do not want more than one card and decided we'd take the chance with a lower score for closing the other two credit cards off. After closing the two cards off our score was in the 800's and I read that over 800 is really good. I have no idea what it was before we closed off the cards and have no idea what our score is now.

I figured with this free credit report thing, I'll use one up every 4 months so I can moniter our credit through the year. But I am curious as to what our score currently is. (but don't want to pay to know *lol*)

I can't wait to have this one card paid off. And then we can rebuild our savings again. It is amazing how one medical crisis can totally wipe a person out.

Blabbing......

Michelle

[kandemama]

What is considered a good credit score? I just got a bunch of paperwork from this lender because I am trying to buy a condo and somewhere it said Equifax rated me at 732 but listed 2 things that negatively affected it: length of credit history too short(which I do NOT understand because I have had a CC for 15 years at least plus 2 car loans that have been paid in full) and then too many inqueries in the last 12 months. Not sure what to make of that one either.