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.
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.
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.
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.