how can i fix my credit?

Reply Mon 29 Jun, 2009 09:38 pm
im 20 yrs old and i have about 7 credit cards. i started when i was 18 and got a little to carried away. i would say my credit balances are ok expect for one credit card. the credit limit is 500 but i had a late fee and couldnt pay it so the balances went over to 560. i really need advice, is this going to hurt my credit in the long run. can it be fix. any help you be great. thanks
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Type: Question • Score: 3 • Views: 2,818 • Replies: 9
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Reply Mon 29 Jun, 2009 10:00 pm
Keep one for emergencies only, cut up the rest and pay them off. Hopefully you have a job. And deal only in cash until you feel you have the discipline for credit. When you like to spend money, it's difficult to have credit cards. Never carry them with you. Impulse buying can really do you in.
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Robert Gentel
Reply Mon 29 Jun, 2009 10:00 pm
If your late payment was reported to credit agencies, yes, it will negatively impact your scores. And being over your limit itself may do so as well.

But over time your scores can recover if you show responsible credit history.

The key things:

1) No negative reports of late payments of failure to pay.
2) Balances well below the limits. If you are even close to your overall credit card limit it will negatively impact your score.
3) Time. You need to show a history of this credit behavior for even higher scores.

Basically what they are looking for is to see if you are overextending yourself, the number of credit cards you have may itself be a negative though canceling them can make your balance to limit ratio look worse.

The bottom line is to stop spending on the cards and start paying them off. This makes sense for reasons other than your credit score. You already got hit with a late fee, just be more thrifty and get ahead of the spend. It will pay off for you in many ways, the least of which is your credit score.
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Reply Tue 30 Jun, 2009 03:59 am
I had the same problem, except it was one credit card with over 3,000 racked up on it from a trip to Europe... those currency exchange fees really get you.
Anyway, like the other people are saying, cut up your credit card, and the next time you get paid, set aside the part of your paycheck that you need to live (rent, food for groceries, gas money) and that's IT. No spending frivolously till you have the cards paid off. Then, take the rest of your money and put it on your card IMMEDIATELY. If you don't, you'll end up spending it, trust me.

I did that and I have an excellent credit score now, so don't worry. As long as you're not making just the minimum payments or late payments, it'll be okay.
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Reply Tue 30 Jun, 2009 04:41 pm
(I was told this by an accountant) Get rid of all but two cards, use one for emergencies only (pay it in full at the end of the month) and do not use the other one at all but pay the monthly interest or APR on it. The credit records will show that your making your payments and your credit will be fine in no time.
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Reply Tue 22 Oct, 2013 12:34 am
the best thing you do is to cut your other credit so that you can pay the over charges of your one credit card that you have problems
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Reply Wed 27 Nov, 2013 05:54 am
It will affect your credit rating for quite some time.
Also, as advised by @eoe - Keep one for emergencies only, cut up the rest and pay them off.
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Reply Tue 24 Jun, 2014 12:30 am
Firstly, I will suggest you to clear other cards and target on one card first, Ask your creditors for lower interest rates, Transfer your balance, Use a peer-to-peer lender, you can also make two mimimun payments in one month.
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Reply Tue 9 Sep, 2014 12:04 am
If your creditors report about your late paid credit then it will make an effect on your credit card. I will suggest you to first concentrate on one credit card.
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Reply Thu 20 Nov, 2014 06:11 am
If you're having difficulties with debt or your credit score, here are few actions you can take to repair your credit. Ways to Repair Your Credit:
Review your credit reports for accuracy.
Set up payment reminders on your bills.
Stop using your credit cards as much.
Reach out to your creditors.
Decide whether to avalanche or snowball your debt.
If you can afford it, try to avalanche your debts instead of snowballing them.
Consider borrowing against your life insurance in order to chip away at your
Open two bank accounts.
Once you pay off your debt, make sure you get a settlement letter.
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