I looped this into another question and am just placing in its own post. My worst credit offense is my handling of a CareCredit account with $85 due per month. Purely careless on my part as it was the only account I never set up on online banking and I've been busy the last two years with "two under two" - my boys! Anyhow - I've reduced what was a $5K vet bill to $1800. I had multiple 30 days past due -4 times - the last one in Jan 2012. I also had a 90 day past due Oct-Dec 2010. I know the 90 day is probably a big hit on my record? I've set this up now for auto-pay and have been on time since January. Is there a magic number for on time to help my score? 6-months? One-year, Two-Years? And if I make an $1800 payment and just wipe out this debt - Will that help my score? Is paid in full with a spotty history better than a live debt? Seems like it would be worth making the $1800 payment if I could get some points? I have a FAKO of 640 - I think my FICO is around 625 and I want to buy a house
Yes, the 90-day late definitely hurt you. The 30-day late earlier this year hurt a lot too, especially since it's more recent. There's no magic number to recover from these late pays (apart from when they completely drop off your credit reports after 7 years), but they will have less and less of an effect on your overall FICO scores as they get older and you build more recent positive payment history. I'm glad to hear you've got the account on auto-pay now. Keep it that way. Paying the $1,800 balance off completely might not help your credit scores if the card is then closed and you lose the credit limit associated with the card. You have to look at how it would affect your overall credit utilization ratio. Do you have other revolving credit? I'm guessing the interest is high on this account, so you would definitely be saving money by paying it off as fast as possible. Sometimes that's more important than doing what's best for your FICO scores.
It seems for some reason that creditcare is not "reading" as a credit card, but as a term loan in my credit reports. I think because it was a fixed limit and single advance to pay for my cats leg surgery. Or at the very least the limit drops with each payment so the creditcare account is always 100% utilized.
Has anyone ever had any luck with a "please forgive me letter"? Maybe a nice person opening the letter would like to see a picture of my cat's $5K leg?
Interesting...I've never used CareCredit, but it specifically says on their website that it's a revolving credit card account. Are you 100% positive it's reporting as an installment loan. They could just be lowering your credit limit along with your payments, which would be a major killer for your CU ratio.
Yes I think they are lowering the limit with the payment - this is why I'm tempted to pay off the full amount of $1,800. I think it may have started as revolving and after the first 30 day past due they "closed the account" so it is not revolving anymore but schedule payments of $85M still continue on the billing. I've been paying $100 or $150 a month but think it may be worth it to show this dog as "paid and closed" .
I can't help you with much advice but I would like to see the picture of your cat. . I had a similar experience with 3 CC's only I was never late on any account with the exception of my mortgage. As I paid, my limits were reduced on 2 CCs until a certain amount but not closed. The 3rd card was closed but not until the balance was at zero and I received a letter informing me of the closing. Maybe a few months of on time payments before you pay off the balance may help in the long run? Just MHO.
Thanks - I set up an autopay for $100 vs the required $85 and I'm making extra payments here and there to speed it up. I'll see if I can get a nice photo of the cat leg....
I know I'm late to the party, but I just found this site I am very interested in this discussion, because I have a CareCredit account, and 2 cats, (so I'm happy to hear that I have a finanicial option, God forbid I need it). I hope your baby is doing well I got my card a while back, when I needed dental work done. I was shocked that I was approved, a line of $1000 (of course that only put a dent in my bill). I finally got it paid down to zero (I made a conscious effort to make payments, as this is my only card besides another card, which may be a secured one?). I was lead to believe that it was just like a regular CC, in that the limit remained $1000. My hubby recently had some dental work done, only 300ish, and we were able to put it on there. Perhaps you opened the card under different terms?
