My Credit is Declining

[Anonymous]

Like most people in here, I don't know what to do or where to turn. Over the years my credit has been good with a FICO of around 670, however, in the last year things have changed causing my credit to suffer. I went from paying every bill on time to letting two of my credit cards slip behind because I couldn't pay all my bills. Now my FICO has dropped to below 600 with these two companies posting 30-60 days late on my credit reports. Should I play catch up with these companies or just continue to let them go? Will playing catch up bring my FICO back up anytime soon? If I continue to let them go will it hurt my FICO anymore? I also have several store credit cards that have a zero balance, will closing them help my score or keeping them open but maintaining a zero balance? Thanks

[Anonymous]

Call the creditor and let them know that you would like to make good on the accounts.  Ask if they will consider reaging the accounts to remove the late pay history.  They may close the accounts and lock you into a fixed payment amount.  If you can afford it take it.  Whatever you do, do not allow them to go to 90 days.  A 90 days can affect your credit as bad as a BK.

[Anonymous]

It's always a good idea to make good on open accounts.  Also, my understand is that closing accounts that are in good standing doesn't help you--keeping them open helps to keep your utilization down if you're not using them.  As the pp said, call them and see if they can work with you somehow.  Sometimes they'll waive late or over-limit fees so that you can catch up if you ask nicely.

[Anonymous]

I have been in banking 5yr, a licensed banker 1yr. I do not process mortgages nor do I decision loan apps but I do know a little about this. 15% of your score is account history and part of that history is length of time for an "open trade". in other words - do not close accounts (credit cards) with a zero balance. The long trade history is a good thing.

now on the flip side - I know if you apply for a mortgage and you have to much credit available to you we the bank) may come back and ask you to close some of those accounts BUT the loan officer will let you know at that time.

[Anonymous]

Whatever you do, don't let it get worse unless you have NO alternative.

I say that having fought my way back from sub-500 scores.