Credit Card Center Advertiser Disclosure†
10-13-2012 12:54 PM
Hi everyone I haven't been on here in years! But now that my credit is looking oh so terrible again I'm in need of some help. Last year I went on a very crazy app spree. I don't know why I did this but I got approved for one thing and couldn't help myself. After racking up several new accounts I lost my job. I have since recovered from missed payments and being several months unemployed but now I'm trying to find out ways of improving my credit. I am going to pay off my balances entirely and increase my deposits for my secured cards for my wells fargo 10k and my cap1 3k. Alot of my credit limits now have been reduced on all of my cards. Some of my cards, such as Target, haven't seen a cli in 4 years. But anyways do you think this will help improve something? My inq are set to fall off next year in February.
10-13-2012 01:05 PM
First of all, let me say that I'm sorry to hear about your job loss. I'm happy to hear you say that you've recovered from that situation and wish you the best as you continue to move on from an unpleasant chapter in life.
Will paying off balances help your credit situation? I don't see how it can do otherwise. Utility plays a major role in credit scoring, and lenders don't like to see high balances stay on cards for an extended period of time. On top of which, interest charges rack up and can add up to a major chunk of change over time. If you pay your cards off and then continue using them, but not allowing high balances to ride, then lenders should become more comfortable with you, and this could indeed lead to future credit limit increases. It may take some time, as they'll need to be able to see this as a new, consistent pattern of your credit usage.
10-13-2012 01:29 PM
Sorry to hear about your situation. It just takes one life event for the rug to be pulled out from under us. The only fix is to pay your bills ontime and try to reduce your balance. Back in the day when I was trying to fix my credit, I sent everything that I could to pay down my cards. Sometimes it was as little as $5 a week. I would pay what I owed plus anything left over. A few bucks here and there and I got it paid off.
10-13-2012 03:13 PM
Sorry to hear about your job loss. I found myself in the exact same situation you were in just a month ago. I have since recovered and now employed again thank god.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.