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I have recently signed back up to myfico, because I'm in desperate need of getting my financial life in order. I honestly just don't know where to begin. When I first signed up in May I had a score of 590. Things were coming along, when summer hit (…lost job), fell behind and ran up my credit cards. Since, I have been back to work, I have been making minimum payments on my credit cards. I can’t seem to catch up and may have to possibly purchase a new car. I was wondering if anyone had any strategic advice on where to begin.
Quick Run Down:
Credit Card 1# 1,400 balance....1500 limit....22.9 interest rate
Credit Card 2# 500 balance.....600 limit 19.9 interest rate
CU Loan 1070 balance ....17% interest
Collections 1# 2500 balance
Collections 2# 500 balance
I have recently applied for my student loans to become income based
The car was purchased in 2008 and paid off in 2013 and I was late 13 times! I know,I'm trying to get it together...should I write good will letter?
Current Score below
@JersGirl wrote:I have recently signed back up to myfico, because I'm in desperate need of getting my financial life in order. I honestly just don't know where to begin. When I first signed up in May I had a score of 590. Things were coming along, when summer hit (…lost job), fell behind and ran up my credit cards. Since, I have been back to work, I have been making minimum payments on my credit cards. I can’t seem to catch up and may have to possibly purchase a new car. I was wondering if anyone had any strategic advice on where to begin.
Quick Run Down:
Credit Card 1# 1,400 balance
Credit Card 2# 500 balance
CU Loan 1070 balance
Collections 1# 2500 balance
Collections 2# 500balance
I have recently applied for my student loans to become income based
Car paid off...should I write good will letter?
Current Score below
Next to each of the balances for your cc's and loan put your credit limit and interest rate. It will help us help you prioritize your payments.
What do you mean by "car paid off...should I write goodwill letter?" Are there late pays showing? If so when were your lates?
There seems to be some missing information here. Are you able to add extra money to your minimum payments on CCs and loan? If so, try and work toward paying off the smallest first, throwing everything you can at it while maintaining minimums on the others. If you interest rates are outrageous, this may need to be revisited. By going with the smallest, you will see some success and help to keep you motivated. On the collections, there are a few routes. You can try a PFD, which would be the first option to try if you want it off your report. Make sure you get in writing before any payment is made. The second would be to try and work out a settlement but it will usually remain on the report as paid or settled for less than owed. The good news about this is that as time passes, it will affect your score less. Then for any lates reporting, the GW letter writing may help. Some write weekly, while others write monthly. I've only had one work so far out of three.
Ultimately, you want your CCs paid down to 9%. When it's above this, it affects your score a great deal but the moment UT is down, a big score bump is in store! If you search, you will see a lot of suggestions for keeping all but one CC at zero balances and one with less than 10 UT, if possible. They say this because they believe it will generate the best benefit toward your score. Just keep in mind, time is your friend.
I normally work in the summer, but due to my program being canceled I had to dipin my savings which wasn't muchand live off credit for three months.(Newbee Teacher) So now I am playing catch up on everything and its killing me.
I updated my post. My lates varied through the life of the loan.
Right now, $$ is the likely tool to rebuild.
PFD offers for possible deletion of the collections.
Paying down the high % utils, and improve your scoring under util of credit.