Advice on the credit card rate adjustment option

[uktaurusbulba]

I have alot of credit card debt and some is at really high rates. I have a fico score of 600, basically because my utilization is very high. I was offered this credit card rate reduction program that basically gives you one monthly payment at a much lower rate but gives up your credit privileges. Does anyone know about this or a link that can help me? Any help is appreciated. Im trying to weigh whether saving the money is worth killing my good credit history with the cards. Im not sure how bad this would hurt me.

[Anonymous]

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uktaurusbulba wrote:
I have alot of credit card debt and some is at really high rates. I have a fico score of 600, basically because my utilization is very high. I was offered this credit card rate reduction program that basically gives you one monthly payment at a much lower rate but gives up your credit privileges. Does anyone know about this or a link that can help me? Any help is appreciated. Im trying to weigh whether saving the money is worth killing my good credit history with the cards. Im not sure how bad this would hurt me.

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There are many of these programs around. It wasn't for me and I had about 90% UTIL. Scores were about 650.......I opened more CCs which doubled my CL & cut my UTIL in half.

I pay as much as I can when the bill is first posted...this cuts back on int. If you wait till the due date you pay more int. each month.

Now when I opened new CC  it cut my hx so my scores will take time to come up again. They went down to 619 and are coming up slowly they are about 644 now. I started this in July of this year.

I only used each new card 2 times just to be sure that it was reporting, then I sock drawer them.

[PayYouNever]

What you're going to have to do is tighten your belt and not use the cards for at least two months, and pay as much as you can against those the cards to bring the UTL down. You'll see a slight jump in your FICO score, depending on how much you lower the UTL.

I got rid of three CC through a debt management program, but kept two open because I needed to continue to have some credit. Although I closed the wrong cards, I closed the ones with the highest balances, not the ones with the shortest history (i.e. I shut down a Chase card that I had for 10 years, when I shouldn't have wasn't aware of how the scoring worked at the time).

The thing about the DMP is that you still pay on the cards, the balance is still there and I believe is counted toward your UTL, and the CC continues to report positively -- only thing is you don't have the cards anymore, and depending on how long you've had the cards should determine what you want to lose.