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How to recover?

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Anonymous
Not applicable

How to recover?

I don’t even know where to start. I worked SO hard to get my credit scores from 520 to 680 and it’s gone in a matter of a month. First and foremost a collection was added to my account from Verizon. (Long story there 😩) I didn’t know because we moved. From the move everything went on my credit cards because my husbands name is on the house and his credit is totally clean. So my balances took a huge jump. Not maxed but still significant. I was also an AU on almost maxed out cards. EVERYONE is now closing my accounts! And balance chasing me. The accounts that had no balances they just closed and the ones I had paid down they cut my limits all the way to make it look maxed out. Discover, all my synchrony cards, barclaycard. My plan was to pay them off and the collection this month with income tax. We charged everything to special promos. Appliances, flooring, furniture etc. I’m in a worse place then when I started and I’m thinking how on earth am I going to get out of this when every time I make a payment they decrease the lines and then I know they will close them. Should I not make big payments anymore? How will I recover from this? Should I just close the accounts? I’m not sure what to do.
5 REPLIES 5
DollyLama
Established Contributor

Re: How to recover?

 Have yourself removed as AU on those maxxed out cards. It was good if they had long history and very low utilization, but this is only compounding your problem with the current credit you have. Any accounts that creditors have kept open, yes continue big payments, start goal under 30% on open cards, don't close them. Payoff the ones that you have a balance but the creditor has closed your account. Any closed account with a balance will exceed 100% utilization on that card. 

 

 

Message 2 of 6
Anonymous
Not applicable

Re: How to recover?

Every time I make a big payment they will lower the limit again so my goal of 30% will never happen. It will always look maxed out should I focus on current open cards? I fear that they will start closing those too.
Message 3 of 6
gdale6
Moderator Emeritus

Re: How to recover?


wrote:
Every time I make a big payment they will lower the limit again so my goal of 30% will never happen. It will always look maxed out should I focus on current open cards? I fear that they will start closing those too.

Remove the AUs by disputing them as not being responsible for the payments after calling the banks to have yourself removed. You may find the problem reduced once the AUs are gone. You  might even call the banks that have closed you down and ask them to re-open but only after those AUs are gone from your CRs.

Message 4 of 6
Anonymous
Not applicable

Re: How to recover?

Just got a notification that another bank has dropped my limit and another bank has completely closed my account. 3 accounts closed and 3 being balanced chased. This is overwhelming. I’m shaking because I really for once had my act together with my credit. I was making large payments ($200-$300) each card a month on the debt we built up during the move. We had 12-18 months to pay off the balances (around $12K) to avoid interest, so I felt good and on track. They have closed my high limit cards that didn’t have a balance and took my ones like $3500 limit down to $2120 because the balance is $1985. Several cards are brought all the way down like that so now I don’t have available credit anywhere which makes my utilization look terrible. The collection is from 4 years ago, honestly I didn’t realize that it was a separate account( Verizon) there was already one on my report. I think it was a mistake for equipment that they said they never received. Ugh this is all too much
Message 5 of 6
Anonymous
Not applicable

Re: How to recover?


wrote:
Just got a notification that another bank has dropped my limit and another bank has completely closed my account. 3 accounts closed and 3 being balanced chased. This is overwhelming. I’m shaking because I really for once had my act together with my credit. I was making large payments ($200-$300) each card a month on the debt we built up during the move. We had 12-18 months to pay off the balances (around $12K) to avoid interest, so I felt good and on track. They have closed my high limit cards that didn’t have a balance and took my ones like $3500 limit down to $2120 because the balance is $1985. Several cards are brought all the way down like that so now I don’t have available credit anywhere which makes my utilization look terrible. The collection is from 4 years ago, honestly I didn’t realize that it was a separate account( Verizon) there was already one on my report. I think it was a mistake for equipment that they said they never received. Ugh this is all too much

Take a HUGE deep breath, you got this...

 

As far as your AUs, call the banks or have whoever is the responsible party call and have you removed as an AU.

 

Next, its time to dispute that verizon collection. Is it with a collection agency or just says verizon?

 

Either way I would write a DV letter to the CA via certified mail, write a complaint with BBB for that CA, and sumbit a complaint on CFPB.gov againts the CA and the CRAs that are reporting the collection.

 

Now, lets attack these balance chasing banks. One way I've been able to beat them at their own game is to use this strategy:

- Find out when your statement is cut for your CCs

- Make min payments on all CCs

- 2 Days before your statement, pay a huge payment

 

This will force them to report you're updated balance to the CRAs and have it drop your utilization percentage. This will throw off your other CCs ALGOTs from automaticaly droping your balances.

 

Hope this helps!

Message 6 of 6
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