cancel
Showing results for 
Search instead for 
Did you mean: 

Credit Card Advice Needed

tag
Total80sKid
Senior Contributor

Re: Credit Card Advice Needed

I also forgot to add that I will be getting $5000 from a relative for property (long story) in roughly a few months. I currently do not have a car and will be looking to get a used one for $2000 and use the other $3000 to pay off a good chunk of my cards.

Am I also assuming right that with such a low fixed income, I'd do better with only one everyday CC? I read how you should have maybe 3, but with my income, I don't think I'd be able to use 3 enough to build nice limits if an emergency were to arise.

I know I'm thinking too far ahead.

Pay down balances now and work on baddies.
Message 11 of 17
csryang
Frequent Contributor

Re: Credit Card Advice Needed

BUI agree with the above posts and recommendations:

1) Please do not apply for more cards for now. please use your credit card sort of like a debit card. That way your score will be better without much debt to credit ratio. Most people with good credit scores never carry balances.

2) You need to first find out each credit card's statement closing date, not the due date because it's the balance upon closing date that each credit card company reports your balance to the credit scoring company. After that, you need to pay the the balance off about one week before closing date. This way your reported balance will zero. However please leave a less than 10%balance/credit on only one card. This way you will ensure to have the best credit score possible. Do not use your cards you just pay off and only start using your card after statement closing date. One way to make this easier is to call in and ask to change your statement closing dates to same or similar dates for all your cards. This may take effect the current month or It might take up to two months. Keep doing this every month and your score will improve if previous collection drops off while you don't apply for more cards.  Manipulating your debt/credit this way will increase your score but it takes time, patience, and organizational skills.

3) No matter how good your are in managing your credit, I predict that lenders will be hesitant to give you more credit. You said your income is less than 12k each year and you already have about 6k in total credit. From here now it's only harder to get credit. Typically people get total credit about 1x of their yearly income. It's possible to get more but it will be tough. One thing to solve this is to increase your income.

4) this leads me to my last point. Do you work? You can get a job, better paying job, or more jobs! Most people on disability can still get paid better with jobs/disability combo than just disability. Please consult a social worker to help you. Secondly, please work with a psychiatrist and/or therapist as anxiety disorder can easily be treated and you may resume function and get a job, leading to more income and perhaps more credit later

Message 12 of 17
Anonymous
Not applicable

Re: Credit Card Advice Needed

1. Pay off Credit One and close it.
2. Make minimum payments toward all cards and then make a large payment on your highest APR card.
3. Go to the garden. Only SP CLI.
Message 13 of 17
Total80sKid
Senior Contributor

Re: Credit Card Advice Needed

I do not work and my anxiety disorder is far from easily treatable. How I wish that were so. Been to several psychologists, tried many medications, etc. nothing helps. Always feel nauseous. Can't even walk into a store without having to turn around and go back out as I feel sick.

Been to several gastros and had every test my insurance will pay for. They find nothing wrong and say it's just IBS and my anxiety. How I'd give anything to work. I could type pages of all of my symptoms and issues but it's not a simple anxiety disorder.

I read people here who make $30-$60k a year and have $100's of thousands in credit. I don't think if one takes care of their bills properly should be penalized because they don't make much. It would be nice to have maybe 2-3 cards with $5k balances. That's a long way off but I'm fairly certain it's a reachable goal.

Just imagine waking up with horrible stomach cramps and pain, intense nausea, chronic migraines, etc almost everyday and then picture yourself going to work. Yea, not happening. I have had jobs before. The longest one lasted 9 months. I'd give anything to work. I hate being a prisoner to my stomach and mind.

And being on the insurance I get, I do not have access to high quality drs. I can't even find a therapist who practices CBT to help me. It's just absurd. So yes, I have been very proactive in trying to help myself and try and work. Just not there yet so have to work with what I got. It's not fun relying on others for places to stay when you are pushing 40. I can't even afford to get a studio. Disability makes it pretty impossible to live happily at all.

Thank you again for the suggestions. Definitely will keep paying my cards down as I go and will stop using them until they are all paid off. Then use the Chase Freedom every day as I would a debit card and just pay it off every month. HAve awhile before I get there, but this is the only fortunate thing about having low limits is that it won't take me terribly long to pay them off.

I'd rather have 2 nice limit cards as opposed to 6-7 $300-$500 cards.
Message 14 of 17
AverageJoesCredit
Legendary Contributor

Re: Credit Card Advice Needed

Stay positive Total80'sKid, regardless if you make 10k or 100k, if you treat your credit responsibly, you can have nice limits in line with whatever you make. Sure money helps but ive found that if you make timely payments, do not maintain high utilization and just show that you can be responsible with limits given, anything is possible.

Everyone here , my Fico family knows my penchant of having low income, it is what it is, but they also know of my long journey back from bankruptcy, about not really knowing how to use credit correctly. In 2 years ive come from a $500 Jc Penny card to over 100k in credit limits bevause ive been responsible with my credit. You can do the same. Your health is first and formost the most important so i wish the best in dealing with such severities.

Credit wise, try to pay down your cards and keep your utilization low. As time goes by, your score will rise, and you will be rewarded. Eventually get rid of credit one as they are more predatory than most. As your score rises, your chances for better cards and limits will rise. It is not out of the realm of possiblities of having a nice limit with Discover or Amex even with low income, ive seen a few examples of this so keep your head, work on what you can now, what you owe and when youve got that worked out,come back and let us know, well be here to give some advice. Stay well and best of luck in life and creditSmiley Happy simply an Average JoeSmiley Happy
Message 15 of 17
Total80sKid
Senior Contributor

Re: Credit Card Advice Needed

Thank you for that super kind post, AJC Smiley Happy

This place seems very friendly, informed and willing to help others with their own advice.

Very appreciative. Smiley Happy
Message 16 of 17
AverageJoesCredit
Legendary Contributor

Re: Credit Card Advice Needed

It is. Im sure most of us have had situations which have lead to wring choices and of course work health and credit affects us all so i find it best to be constructive and positive as all negativity get us is nowhere but negativity. We all look forward to your next updates as im sure with what you can learn and apply from here ,itll suprise even yourselfSmiley Happy
Message 17 of 17
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.