@Anonymous wrote:Okay. I realized that my last post asking for helping raising my score, had nothing to do with raising my score. I know the SCT would work if I raised it into at least the fair range which I am only 40-60 points away from that and ensuring my auto loan it paid on time for the next 6 months. So, any suggestions would be great!
. My CC UTIL is 100%. ( know that is bad). I have a Torrid Card, VS, Cap One Cash Rewards and Cap One Secured. I also have a Cap One auto loan that I am late on, and a personal loan that I pay the bare min. ($4500). I want to do projects around the house and the best way or easiest way is to get a Lowe's or HD card. My TU score is 560. I have hard inquiries and two things listed in collections (according to Credit Karma).
Question: Would it be best to completly pay off the CAP One cards at once (they have low balances since I am rebuilding my cred) and use them for gas and groceries, which I buy anyways. Or pay them off and not use them at all?
I know I need to grow my garden, so no more inquiries for the next 6 months. (until 12/15)
Thank you for any suggestions
First of all, 40 to 60 points is really a LOT! It's no small feat to raise your score that much. It takes TIME!
Also, yes, 100% utility is BAD. I don't want to sound harsh, and I do realize we all get to run our financial lives the way we see fit...but, you asked for advice, so here goes:
When you are at 100% utility already AND behind on car payments, deciding to do "projects around the house" that you "want" to do (not necessary repairs) and that you can only do by increasing your credit card debt even more...is probably not the best idea.
I think no one can truly be successful managing credit and improving their credit score until they come to see credit as a PAYMENT TOOL...a matter of convenience, and perhaps a source of rewards, instead of a way to do things they really can't AFFORD to do.
Most of us cannot afford to pay cash for our homes, and many must finance cars. But, other than that the hard reality is that if you HAVE to put something on credit, you can't afford it. The number one financial principal I live by and have tried to instill in my kids is to live within your means. Why not try to take on some side work or sell things you no longer use to pay for home projects instead of trying to figure out a way to put them on credit cards?
It sounds like you're on the fast-track to BK, honestly. I truly don't mean to come across as judgemental or harsh, but I do think you should do some serious thinking about your money and credit habits.
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@LuckyBird wrote:
@Anonymous wrote:Okay. I realized that my last post asking for helping raising my score, had nothing to do with raising my score. I know the SCT would work if I raised it into at least the fair range which I am only 40-60 points away from that and ensuring my auto loan it paid on time for the next 6 months. So, any suggestions would be great!
. My CC UTIL is 100%. ( know that is bad). I have a Torrid Card, VS, Cap One Cash Rewards and Cap One Secured. I also have a Cap One auto loan that I am late on, and a personal loan that I pay the bare min. ($4500). I want to do projects around the house and the best way or easiest way is to get a Lowe's or HD card. My TU score is 560. I have hard inquiries and two things listed in collections (according to Credit Karma).
Question: Would it be best to completly pay off the CAP One cards at once (they have low balances since I am rebuilding my cred) and use them for gas and groceries, which I buy anyways. Or pay them off and not use them at all?
I know I need to grow my garden, so no more inquiries for the next 6 months. (until 12/15)
Thank you for any suggestions
First of all, 40 to 60 points is really a LOT! It's no small feat to raise your score that much. It takes TIME!
Also, yes, 100% utility is BAD. I don't want to sound harsh, and I do realize we all get to run our financial lives the way we see fit...but, you asked for advice, so here goes:
When you are at 100% utility already AND behind on car payments, deciding to do "projects around the house" that you "want" to do (not necessary repairs) and that you can only do by increasing your credit card debt even more...is probably not the best idea.
I think no one can truly be successful managing credit and improving their credit score until they come to see credit as a PAYMENT TOOL...a matter of convenience, and perhaps a source of rewards, instead of a way to do things they really can't AFFORD to do.
Most of us cannot afford to pay cash for our homes, and many must finance cars. But, other than that the hard reality is that if you HAVE to put something on credit, you can't afford it. The number one financial principal I live by and have tried to instill in my kids is to live within your means. Why not try to take on some side work or sell things you no longer use to pay for home projects instead of trying to figure out a way to put them on credit cards?
It sounds like you're on the fast-track to BK, honestly. I truly don't mean to come across as judgemental or harsh, but I do think you should do some serious thinking about your money and credit habits.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^
First of all, I asked for the advise and opinions, so it is warranted. Second, I don't think you sound harsh or judgemental. It is your honest opinion and that is what I asked for. Don't ask a quesiton, you don't want to have the answer to. 
It is all in the mentality. I have never had an overwhelming sense of panic if I missed a payment. I have always felt like there is always money to be made, and I am a super harder worker, so I will always have cash. I know I am definitely irresponsible with my finances, and that is what I want to fix.
So, I don't take offense at all and I definitely respect and apprecaite the honesty and candor.
I'm glad you didn't take offense!
Developing good money habits does take a lot of discipline. It's not easy, for sure. No one likes to forgo something they want to do or own, especially when a credit card makes it seem so easy to just go ahead and indulge and figure out payment later.
But, if you can develop that discipline...resolve to not put things you truly can't afford right now on plastic, and focus on on-time payments and paying down the debt you have, you would be amazed how quickly your scores may rise. Especially if you read up in the "Rebuilding" forum and find out how to address the collections you have reporting.
Taking on debt becomes a vicious cycle for many people...you have to spend so much to service the debt you have, that you can end up lacking money for everyday necessities, or even just your "wants," like those home projects you want to do. So then you end up charging more and more, and payments continue to rise. The problem is this: that cycle is unsustainable in the long-term. Sooner or later you will hit a wall, where you can't get any more credit and/or can no longer handle even the minimum payments. This often leaves bankruptcy as the only option for many people.
But for those who build or re-build good credit habits and good scores, the world is their oyster. it will open so many doors in the future - being able to finance cars or a home at great low rates, lower auto and homeowner's insurance rates, etc. Not to mention cash and travel rewards that can be earned with prime cards (used responsibly, of course!) It may perhaps even come into play with a job opportunity at some point.
Wishing you the best of luck on your credit journey.
@Anonymous wrote:Okay. I realized that my last post asking for helping raising my score, had nothing to do with raising my score. I know the SCT would work if I raised it into at least the fair range which I am only 40-60 points away from that and ensuring my auto loan it paid on time for the next 6 months. So, any suggestions would be great!
. My CC UTIL is 100%. ( know that is bad). I have a Torrid Card, VS, Cap One Cash Rewards and Cap One Secured. I also have a Cap One auto loan that I am late on, and a personal loan that I pay the bare min. ($4500). I want to do projects around the house and the best way or easiest way is to get a Lowe's or HD card. My TU score is 560. I have hard inquiries and two things listed in collections (according to Credit Karma).
Question: Would it be best to completly pay off the CAP One cards at once (they have low balances since I am rebuilding my cred) and use them for gas and groceries, which I buy anyways. Or pay them off and not use them at all?
I know I need to grow my garden, so no more inquiries for the next 6 months. (until 12/15)
Thank you for any suggestions
YES, definitely pay down you Cap1 cards! (Any pay off what you can on the others but first, try to catch up on that auto loan as lates will haunt you for years to come).
As for using them again, once they're paid off -- that's up to you. Some people just aren't good with credit cards (my fiance is one of them; he just can't manage his spending on CCs so he mostly uses his debit card and sometimes his Sallie Mae for groceries/gas) and prefer cash/debit. One good rule is know your budget and only spend within that (whatever you allocate to groceries/gas/other things you buy) every month. I do that and it works! I know I have $XX amount every month and I keep my spending within that. Some people have an easier time just using one CC for everything (although if you want to maximize your score, 2-3 cards is best).
I know lates sometimes don't seem like a big deal but in terms of your credit, they are HUGE. PAY ON TIME, ALWAYS!!
Definitely hit the Rebuilding Forum to see what you can do about those collections as well.
Sorry if I came off as harsh, I just want to help!