Credit card help

iVillage Member
Registered: 11-28-2008
Credit card help
4
Fri, 11-28-2008 - 2:27am

Hi,
I am currently living with my parents. I used to live on my own for 10 years but renting. It has been hard moving back with my parents, but I felt I needed to because of my financial situation. I have no savings, no 401 K. I have 6 credit cards totaling about $25,600. No other debt (thank gosh). I work full time and make $25,000 a year. I am currently looking for a higher paying job or possibly a second part time job. I know I have made some pretty bad decisions when it comes to credit. Last time I looked at my FICO score it was around 645 (that was about a month ago). I have been late on one one my credit cards once and now I won't be able to pay the minimum on one of my cards. The minimum is $228.00. The reason why I can't pay it is because for a couple months now I have had to take some time off from work to care for a sick relative. But now I can work 40 hours a week. So lately I have been so strapped for cash. When I talked to the lady on the phone she was very nice and she was able to lower my finance charge (which is currently 19.99%.) She was able to reduce it to 16.74% and waive the late fee I will have on it because I can't pay the minimum. But then on Dec. 1st, my finance charges will accrue, so I need to come up with about $120.00. But she told me she had to close the card because my debt to income ratio and with my other cards (which are all pretty much to their limit), is way too low. I asked her that by doing all of this, will it lower my FICO score alot and she said no, it should just a little. On my other credit cards I am current and paying. I will be able to pay the minimum and a little more on the one that is closed in a couple weeks. I was worried because I thought that once your credit card is closed, that you have to pay the whole balance on it (currently almost $8,500) and I told her there was NO way I could do this. But she said I just need to make the payments but it has to be closed because of my situation. I am so worried that all of this is going to bring my score down ALOT. I want to be able to buy a home someday. Like I said, I am current on all of my other cards and I have been late maybe once/twice on a payment. I don't want to use a debt consolidation company because of what I have read and that would be on my credit report. If anyone has any advice for me, please let me know.


Thank you.

iVillage Member
Registered: 11-28-2008
Sat, 11-29-2008 - 12:26am
bump
Avatar for cl_beckymk
iVillage Member
Registered: 03-19-2003
Sat, 11-29-2008 - 10:21am

I know it will lower your credit score but I have no idea by how much!


You might want to ask on the debt Q&A board specifically about the credit report score


http://messageboards.ivillage.com/iv-mldebtqa


I know that as long as you keep chipping away at the debt over time the score will improve.

iVillage Member
Registered: 06-03-2006
Sat, 11-29-2008 - 11:04am
From now on make sure you pay every payment on time and pay more than the minimum. Put every extra dollar toward your debt and you will see your FICO creep back up.
iVillage Member
Registered: 11-28-2008
Sat, 11-29-2008 - 11:17pm
Thanks for your replies. No, I am not planning on buying a house anytime soon. Maybe in a few years.