Bad or Good Credit?

[Anonymous]

I'm not at the point to where I couldn't go without using my cards. I have thought of getting a part time job in addition to my 8-5 M-F job. However, it wouldn't be worth it since I have 2 toddlers and what I would be making would barely cover the child care costs.  

[Anonymous]

Inthat case I don't believethe situation is that desparate, especially with the housing market as it is.  Ramen make good meals...lol!!!  J/k.... but I would get he debt down to prevent any AA onyour creditor's parts.  They are getting really weird espcially wih maxed out lines.  I can understand the childcare situation.  there are some work at home jobs but it seems you are away from the babies enough.

[Anonymous]

What about consolidating the debt? I mean paying everything off and having one big payment for a loan. The loan we had applied for was for and addtitional equity. Could that hurt my credit score?

[Anonymous]

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bgonzalez706 wrote:

What about consolidating the debt? I mean paying everything off and having one big payment for a loan. The loan we had applied for was for and addtitional equity. Could that hurt my credit score?

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Any lender you apply to right now will be skittish.  I wouldn't worry about score at this point, with all those maxed out lines, your score has already taken a beating.  I would make sure that the payment on the loan was less than the total payments due on the CCs and leave the LOC alone.  Do you belong to a credit union?  If so I would say that would be your best bet and to go in and speak with them face to face if possible.  They seem to be more understanding about missteps if you let them know that you would just like to get the debt in a position for a reasonable paydown.  They may advise you to close your existing cards to prevent you from getting into even more debt which I don't think would be a bad idea.  You can always open more lines at a later date.

[Anonymous]

Maybe I missed it in an earlier post but do you know what your scores are?  Perhaps they aren't hat bad considering you haven't been late.  I would definately pull all 3 fico's before making any big decision like selling your home.  It may be that lowering your utilization will be a significant enough boost in scores to avoid further action.

[My_dog_FICO]

bg - I know it's hard living without your cc's.  I did it myself for 3 years.  Had 7 cards and maxed them all.  I used a DMP and it hurt my scores, but it got me out of perpetual debt.  Since then I've slowly climbed to where I am now.  By not using any cc's for 3 years, I've stopped by bad cc habits.  This year I'm getting back on my FICO feat with two cc's.  one semi-secure and one not.  My scores are rising, but they'll rise faster once I do the <10% utility game.

Don't close your accounts, but definitely give the cards to someone you trust or put them in a safe deposit box.  It will be hard, but you'll thank youself in 12 months when you're debt is 1/2 and your FICO is up 100-200 pts.

[Anonymous]

Doesn;t matter how bad or goodthe scores are.  All lenders are afraid when they see that many maxed out accounts.  Many deny credit for this reason even when scores are good.

[demi]

You need to seriously not use the cards....period.  You will never get them paid down if you continue to use.  You may be making payments on time, but if you feel you need to continue using the cards, you have a problem.  I would seriously suggest hiding, locking or cutting up all but one or two, keep a mult use card, such as a visa in your wallet...and have paid down enough for emergency use only....true emergency.  Anything else can be handled with cash, check or atm.

Not to sound harsh, but I see you on a pretty similar path as I was 5 or 6 years ago....you do not need credit cards to survive....and believe me, home ownership is a lot more important.  Think about things - do you really need another car, or can you fix the ones you have?  Believe me, once you start gaining control, the reduction in stress is worth not buying that outfit, or TV, or whatever.  I have been in a debt managment plan for 3 years, about 8 months left, do not have a credit card (they made me do without)....and yes, I will get one or two when I am finished, but not for buying, for helping my score.  I now seriously have to think, do I really need something, instead of just popping it on a card.  The 3000 dollar TV's don't seem so necessary when you pay cash !

Good luck, you have gotten some great advice....I am just nervous for you when you say you are not ready to give up credit cards.

[Anonymous]

I got score watch & it stated that the longest account I had was for 11 months. However; I've had my mortgage for 19 months and a Bank of America credit card for 20 months. On the card it states that I'm an authorized used. If I were to remove my self from being an authorized user, would it affect my score?

[Boswd]

again as Brammy pointed out.   At this point in your credit situation, your last of your worries right now should be your credit score.    Work on those balances and get them down,  good scores will soon follow but right now worry about the debt first  score second.