Hello, this is my first post here, and the start of my credit restoration. OKay here is my story. Visa-credit limit-2200 balance 2100 Sears-limit-650 balance 710 MBNA-limit-2000 balance 3600(i know,OMG) Andrews-limit-1200 balance 900 I have had 3 accounts go 90 days late back in 99. None since then. I had one charge off of 569, and one collection account of 55. I have paid both the charge off and the collection account off. When they showed paid my score dropped from 567 to 497. I am kinda wondering what will happen to my score if i pay my limits off. I came into enough money(inheritance)to pay everything totally off. Will this help my score more that way, or should i pay them off a chunk at a time? I will need to get an apartment in 6 months, so i have a lot of work to do. Any ideas for the newbie here? By the way, i love this site.
I'd suggest paying 'em off if possible. Forget FICO. Look at all the interest you'll save as well as free up a chunk of change for your monthly budget.
If you have the money pay them off NOW, why continue to pay interest and I am sure over the limit fees for that one card.
I am sure you will. But people need to stop focusing so much on scores and focus on paying down their debts. Saving on interest and over the limit fees should be incentive enough.
Timmi, I'd say so simply because you have your cards either jammed up to or way past your credit limit. You've got be getting killed interest wise as well as MBNA's over limit fees.
I am really getting killed on fees and stuff. I know i should just worry about the money i will save, but i also have to worry about my apartment i will need come summer. I want my credit to look up to snuff so i can have a place to live. My 3 90 day lates are 3 years old, so do you think that will be a factor?
If you're worried about the apartment come summer, don't. It's been my experience in renting (many times) that it's not so much your score as it is having your debts paid or as close to resolved as possible. Remember, renting is more of a manual credit decision as opposed to a more computer/score-driven one, as in a credit card or auto loan. Then you can take the interest and little extra money you were planning on using to pay them off over time and invest it...let your money make money for you while you go through the validation/dispute process in order to clear up any credit problems you feel you need to address/resolve. Good luck!
thanks everyone, this site is great, i had no idea someone would reply so quick. Has anyone had any luck having companys remove 90 day late marks? they are 3 years old and it only happened when i moved?
Yes, I have had 90 day lates removed. Cite a problem with mail forwarding--and how that spiraled into a 90 day late. Fair Credit Billing Act says that you are supposed to receive bills (to check for errors, accuracy, etc.). Tell them that you changed the address and other info. on the payment form. cariba
I have very high limits and very high balances. I find that for every 1% of my balances that I pay, my score goes up 1 point. I have perfect credit except for the high balances and it is clear that is what is pulling my score down. My scores are in the 650 -700 range. If the one point per 1% holds true, my score could go up 100 points once everything is paid off. Right now I am waiting to see what happens when Citi reports my $7500 payment. I hope to get 10 -11 points. I think you will see a big jump in your scores once these debts are paid.
Hello Timmi, As far as the apartment goes I wouldnt worry about it at all. I had (still kinda have) horrible credit when my wife and I got married in Texas. We rented a very ritzy house. They checked our credit and I asked if we got approved because of my credit being helped by my wifes. They said that my credit would have been fine enough to get the house. The point is that real estate agents are more worried about debt than payment history.
Re: Apartments and Debt I would like to ask a question. If a potential renter has no credit card debt but has a 3 year old bankruptcy discharged, what are the chances of that person finding a good apartment to rent, IF that person is renting for the very first time and is a student with a job on campus?
Re: Apartments and Debt John, Honestly it depends, if it is a complex with more stringent rules and you are a student they may require a co-signer but unlike a credit card they will manually review your history and how you are "now" if you go through the owner, as in a apartment in an individually owned house thy may not even check your credit and if they do they may require a larger deposit...same goes with a complex....when I was in college I had my folks co-sign the apartment. A couple of years later, with my good timely payments and being a good tenant, I vouched for friends with HORRIBLE credit and they took them without a cosigner...so if it's a complex and you know a good tenant, that could be a different angle to go....good luck either way!
Re: Apartments and Debt It depends on where you live. I rented in Texas with a 3 year old bankruptcy. Texas is a land of second chances. In other areas, your Equifax had better be clean--they are going to check The Registry (reseller of Equifax info.). I recently cleared up my mom's EQ report, and there is no way she would have gotten her apt. in NYC without it being cleaned up--well, she might have gotten it and had to pay 2 months sec. I rent in Washington, D. C. metro and they use Equifax/The Registry. cariba
