My credit (Equifax) score dropped 68 points in a month. How to recover?

[uday029]

Thans every one for your responses. Really helpful.

[Anonymous]

Remember that "rebuilding credit" is a totally different thing than "rebuilding new debt".

If those balances can't be paid off quickly, you're just building debt, not credit.  Focus on responsibly managing debt so you don't get into trouble in the future!

I'd work on cutting spending significantly if you can't address this balance before the next statement date.  Don't start paying interest this early if your scores aren't in prime territory.

[uday029]

Thanks ABCD2199. I had to do a balance transfer since my spouse lost her job and couldn't make monthly payments anymore. So I had to apply for a 21 month 0% interest credit card and do a balance transfer so we both can buy some time to pay off the debt. I can comfortably keep up my other monthly payments such as car loans etc., Do you still recommend paying off the big amount sooner? Thanks.

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@Anonymous wrote:

Remember that "rebuilding credit" is a totally different thing than "rebuilding new debt".

If those balances can't be paid off quickly, you're just building debt, not credit.  Focus on responsibly managing debt so you don't get into trouble in the future!

I'd work on cutting spending significantly if you can't address this balance before the next statement date.  Don't start paying interest this early if your scores aren't in prime territory.

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[Anonymous]

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@uday029 wrote:

Thanks ABCD2199. I had to do a balance transfer since my spouse lost her job and couldn't make monthly payments anymore. So I had to apply for a 21 month 0% interest credit card and do a balance transfer so we both can buy some time to pay off the debt. I can comfortably keep up my other monthly payments such as car loans etc., Do you still recommend paying off the big amount sooner? Thanks.

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@Anonymous wrote:

Remember that "rebuilding credit" is a totally different thing than "rebuilding new debt".

If those balances can't be paid off quickly, you're just building debt, not credit.  Focus on responsibly managing debt so you don't get into trouble in the future!

I'd work on cutting spending significantly if you can't address this balance before the next statement date.  Don't start paying interest this early if your scores aren't in prime territory.

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As long as you can pay it off before the end of the 21 months, then its not costing you anything to carry that debt - other than FICO points.

[Anonymous]

I’m fine with 0% transfers but with one less income you want to really manage spending going forward.

If your spouse starts running balances up for any reason you’re going to find yourself in a possible spiral. So manage spending until it is paid off and I’d suggest paying it down below 29% so you don’t scare other lenders.