 How to handle credit card debt the best way possible??? |
| Okay, here's my situation: I have 7k I put on a 0apr till 08-08 but my husband's is out of control. He has three cards totalling 22k alone. One is at 4% that has the highest balance the ... |
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 No Credit history and looking for a credit card to build credit history!! |
| I have been searching for a credit card for a long time now that would let me build my credit. But the problem is that I have no credit history(unestablished). My husband and I have decided that a ... |
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 Just opened a macys card and got a question? |
| Hi, I turned 18 on September 16th and opened a student credit card issued by citi, and then the other day I went shopping, and saw with a macys card u get good discounts...was that a good idea on my ... |
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 I am applying for credit cards and always getting rejected, is there something that I might be doing wrong? |
| I am 18 and employed with a bank account and debit card. I want to have a credit future so I can have some credit history! Please help me..... |
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 Why won't my auto loan get refinanced? |
| I have a loan through Chase bank. We have paid the loan payments and added a bit to each payment to pay down the principal. I have had the loan for 10 mos. at 18%. My credit was terrible when we were ... |
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 Should I try to negotiate a lower interest rate on a credit card? |
| I am in the process of paying off debts (thank you Dave Ramsey), including a credit card with about $9000 on it. I am able to make the payments and I am current. Despite this, a lower interest rate ... |
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 I have credit card debt and the credit card companies are threating to take me to court. Can they do anything? |
| I am thanking about going bankrupt and I have talked to a lawyer and he told me not to pay anything. I was just wanting to know if they could do anything. I know they can take your wages. How long ... |
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 Is it wise to pay off a debt to a collection agency once the debt from the credit card company is charged off? |
| Given the fact that a charged off credit card account stays on a credit report for 7 years, should a debtor make attempts to pay off the debt sometime soon thereafter the official charge-off in good ... |
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 Maxxed out? |
| i have six cards that are almost all maxed out from college and moving and eating out....i want to buy a car in 6 months ..whats a good plan of action to pay off 2500 in credit card debt and still ... |
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 What kind of home loan interest rate could I get with a bankruptcy on my record? |
| I have a chapter 7 bankruptcy on my record from 2003, but I have no debt and a credit score of about 700. And I have $20,000 for a down payment. If I got a home loan, would the bankruptcy make a huge ... |
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 Applying for a credit card..? |
| I'm almost 18 and I would like to get a credit card and I am just wondering how easy it is, what should be my limit, and should i apply through my bank ?... |
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 How can I get a home loan with bad credit? |
| I'm getting ready to go through a divorce and I have 3 children, ages, 6, 5, and 2. I would have already filed for divorce if I had somewhere to go. I would really like to buy a home for my ... |
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| How can i clean up my credit. i do not have the money to offer on settelments? |
| I want to raise my credit score, and just how can i have the negitives turned into postives on my credit report...there are people offering that they can clean up your credit fast for a fee. so can ... |
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 Credit card limits? |
hello, i payed down alot of credit cards this last year. After i payed them down they increased my limits sufficantly
1 card 3500 then to 7000 now 14000
2nd card 5000 then to 7000 now 11000... |
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emh924a | Is it true that you shouldnt payoff credit cards and cancel them that it reflects badly on your credit score? |
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homeschoolmom
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Pay off the cards (you'll save money in interest), but if you're worried about your credit score, leave them open.
Honestly, lenders would rather see high savings balances than long credit histories. If you have lots of money in savings, it shows lenders that you manage your money well and don't spend every penny you earn. And that's a better indicator of how you use money than ANY credit score.
ALWAYS have money in the bank for emergencies, because they WILL happen. Be prepared. |
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Pepibom
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Just something to add regarding cancelling credit cards...remember that if you ever have the inclination to buy a house or condo coop etc...The mortgage company you use will usually require that you have at least three credit sources....and department store credit cards do count!
also adding that I live in NYC and this is what they required of me. |
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Studly
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DO NOT cancel/close your charge accounts!
Take a few moments and visit the link below. This is the home site for the folks that developed the FICO scoring system. They have lots of information about how to improve your scores.
This is why you don't close your account:
First, a major part of your credit score relates you credit history. The longer you have had credit, the better your score. By closing old credit cards, you wipe out that portion of your history.
It's ok to have 2-3 unused credit cards. Better yet, use them occaionally but keep them paid off.
Reason #2. Another major part of your score is the debt/credit ration. This is the differance between how much credit you are allowed, and how much you have charged against it.
Take this example. You have 5 cards, with a total credit limit of $20,000. Lets assume you only use 2 of them, and you owe just $2000.
Your debt to credit ration currently is 10% (excellent!!!).
Now, lets say you listened to the wrong advice, and decided to close 3 of your unused cards, and they have a rather large credit limit. You eliminate $12,000 of credit so now you have only $8000. But your debt is still the same.
You now have a debt/credit ratio of 25%. Huge differance! Not only have you raised your ratio, you wiped away a huge part of your credit history.
This will effect your score for a few months until you can re-establish your payment histories. If you are not planning any major credit purchases, it won't matter that much. But if you were trying to improve your credit score quickly by closing these cards, it's going to backfire on you!
If you must close these accounts, do them one at a time, and over a period of time.
Again, go to the site below and educate yourself. |
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reichman2007
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Yeah..then you end up being sued like me..lol |
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redsoxfan11x
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your credit number is calculated with regards to how many open, revolving accounts you have and their status, it does decrease your score when you close your credit cards. Sounds wrong somehow, but that is what happened when my father paid and closed some of his accounts. |
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kevbeer2003
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keep very very low balances...ok to pay them off but don't cancel them...helps to build credit. |
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Martin S
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No it's not true. If you pay off your credit cards it enhances your credit score. As to canceling them, you only have to have one that you use only to buy things that you already have the money to pay for so that your credit history doesn't just end at a certain date. But if you have trouble controlling your spending, it's better to just cut them up instead of continuing on a roller coaster of debt and interest payments. |
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D C
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FICO uses a very complex formula that only they know when calculating credit scores. There is a fine balance to keeping enough accts open to help your score but not having to much available credit that it drags it down.
I closed 3-4 credit card accounts that I never used and it didn't have any effect on my score. It may be because I never used them at all and the credit bureau took that into account or something. If you do close the accounts, make sure that it is shown on the credit bureau report as being closed by you and not closed by the creditor. |
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tonalc1
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They like to see some kind of payback history over time. If you've had it for a while, it's completely OK to pay it off.
Get your credit report to make sure it comes up as "closed". This is important, as part of your credit score is how much credit you have available to use (i.e., several credit cards). Lower this to just one card, or none. |
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