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Member
mhenson
Posts: 5
Registered: ‎04-08-2007

help!

I recently had some trouble paying my 8 credit cards on time. And i am fortunate to have the means of paying them all off currently. BUT i have heard many things about what to do concerning closing or keeping the credit cards open to help my credit . I have no access to the cards so if i had to leave the accounts open then i wouldnt use them. Any suggestions on whether to close the accounts out or just leave them open to try to help my credit.  I am wanting to repair my credit and get my scores up so that i can purchase a house in the future. I appreciate any suggestions.
Moderator Emeritus
Brammy
Posts: 5,436
Registered: ‎03-10-2007

NEed more info



mhenson wrote:
I recently had some trouble paying my 8 credit cards on time. And i am fortunate to have the means of paying them all off currently. BUT i have heard many things about what to do concerning closing or keeping the credit cards open to help my credit . I have no access to the cards so if i had to leave the accounts open then i wouldnt use them. Any suggestions on whether to close the accounts out or just leave them open to try to help my credit.  I am wanting to repair my credit and get my scores up so that i can purchase a house in the future. I appreciate any suggestions.


 
When you say you have no accesss to the cards, what do you mean?  Did you cut them up or freeze them?  If yuo are going to keep them open they would need to report acctivity quarterly in order to be considered by the FICO score.

Valued Contributor
TheNewWorldMan
Posts: 2,374
Registered: ‎03-15-2007

Don't cancel the accounts. Instead, use the credit system...



mhenson wrote:
I recently had some trouble paying my 8 credit cards on time. And i am fortunate to have the means of paying them all off currently. BUT i have heard many things about what to do concerning closing or keeping the credit cards open to help my credit . I have no access to the cards so if i had to leave the accounts open then i wouldnt use them. Any suggestions on whether to close the accounts out or just leave them open to try to help my credit. I am wanting to repair my credit and get my scores up so that i can purchase a house in the future. I appreciate any suggestions.





Don't cancel the accounts. Instead, use the credit system against itself.

Put all the cards on autopay by scheduling a payment for the minimum balance (usually $15) from your checking account a week before the payment is due. Then charge just enough on each card to generate a bill. Maybe a $35 tank of gas, or $40 worth of groceries, or your $24.99 Vonage bill. If your credit limit is, say, $2000, a $40 purchase would put your utilization at a negligible 2%. But it would help your credit score by showing that you have bills and you pay them on time. As long as your balances stay low (no reason to ever have a balance over $40) the interest you pay will be trivial (maybe $2-3 a month on all cards total). But FICO sure loves you when you pay your bills on time. And don't forget to apply for those credit-line increases once a year or so.
- - - -
in a credit-scoring postnuclear Stone Age...
Member
mhenson
Posts: 5
Registered: ‎04-08-2007

I cut up all of my credit cards, so should i close the on...

I cut up all of my credit cards, so should i close the ones that are going to be paid off or should i keep them open in order to help repair my fico. .. i recently have been 30 days late on them for 3 months in a row, so i am wanting to repair my credit the correct way.
Moderator Emeritus
Brammy
Posts: 5,436
Registered: ‎03-10-2007

Pay them off and once paid off have the issuer send you a...

Pay them off and once paid off have the issuer send you a new card.  Let them know they weren't lost but tat you cut them up.  Once you getthe new cards.  Do what I did to fight temptation.  Put each in a ziploc bag.  Fill it with water and throw it in te freezer.  Eac month choose whci h card you want to use (but PIF).  Rotate each month. You'll have to defrost overnight (no nuking the cards) that way anything you purchase will be well thought out.
Senior Contributor
Noah_Bodie
Posts: 4,635
Registered: ‎03-11-2007

Pay off the balances, but leave $100 on each card. Pay th...

Pay off the balances, but leave $100 on each card. Pay them off in full over the next 3 months at around $35 a month or at least the minimum due.
 
Once the creditors report the paid balances to the Big Three, then you might try contacting each one where you have late payments. Keep the cards open. If you close them, then they know they cannot make any more money off you.
 
To get rid of lates, you can try writing a "goodwill letter". I've had some success getting adverse reporting off mine and the wife's credit reports by goodwilling.
 
Try to keep the cards with the oldest history and highest credit limit open. If you have some newer cards with no lates and low limits, close them in 3 months when the balance hits zero.
 
Again, keep open any cards with lates. Goodwill them to try and get rid of the lates. Do it in writing. Calling won't work. You won't get the person who can delete the lates when you call.
 

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