What credit card is best to pay off first? A card overbalance or closed?

Question

I have a credit card that is over my credit limit but is still "open" or I have a card that is below the limit but has been closed by the creditor.
What is the best card to pay off first, asuming that the interest rates are the same. I'm leaning towards the open account that is over limit.
Which one would show most favorably on my credit file?

I don't USE credit cards, only cash, so lectures about not using the cards is not needed. I made a mistake now I'm paying for it. Iw ill glady pay off my debts instead of taking the cowards way out and declare bankrupty.

No over limit fees, all of those are waived.

Likewise I am already paying well over the minimum payments on each one, but am thinking that I would knock one of the cards down to the mimimum payment and double up payments on the card that is not closed, but it over limit.

Sounds as if I'm heading in the right track.

thanks

Answer 1

If you have an account over-the-limit and another one that is closed, the OTL account is your first priority. It will show most favorably if it is still open and you can quickly return it to a current status.

If you are having these problems, you may benefit from a debt management plan. You may wish to meet with a credit counselor to discuss options for improving your situation. A directory of local agencies is below.

Answer 2

Both cards are already negative on your credit report. If you are being charged over limit fees, concentrate on that one to stop the fees but give the other card something to show good faith. After the one card is under the limit, pay equally. Keep at it. Both cards will show negatives for the next 7 years so don't make the same mistake again. Things happen in life where credit cards are very important (broken appliance, a need before payday, etc.) but they are not meant to live off. Hey, we've all been there but just look back to how much of that credit card balance are you paying for to have gotten things that you no longer even have value from and yet will pay for the next year, 2 years, 5 years, etc.

Answer 3

I would recommend that you make arrangements with the closed credit card company to make payment arrangements to pay off the account and see if they would be willing to reverse and cease further late payment, and interest fees and setting up a reasonable repayment schedule while at the same time, applying payment to get the open card balance below it's limit and no longer using it until it's bake down to say $100.00 balance. This way you can help to rebuild your credit rating and become less of a credit risk for future loans or cards at better interest rates and higher credit limits.

Answer 4

Are you getting over limit charges? If so start paying that one and pay more than the minimum payment due. Call the creditor of the closed card and set up payment arrangements that work with your budget. If they do not hear from you or they do not get a payment in awhile your account will be sold to a collection agency. You don't need a credit counselor to negotiate repayment, you just have to be consistent and get it in writing.

Answer 5

Assuming the over-limit card dings with over-limit penalties everyt month, I would pay that down first.

By closed, does that mean the creditor has given up on you, or do they still send you a statement every month with interest charges. If so, then I would pay whichever has the higher interest rate.

Answer 6

you should get rid of all credit cards and start paying with cash. believe it or not you WILL save a lot of money by doing that. not just from interest, but people will charge less. eg: a mechanic who fixed my bumper said it would cost me $1500, I asked him how much the cash price was and he said $1000. try it

Answer 7

the over its limit. at least the credit report will show you are under your credit limit - which will be viewed more favorably.