Credit Card Debt

[Anonymous]

I have several hundred dollars in credit card debt and I'm close to my limit on all three cards so of course this is impacting my credit score severely...To prove my point my EQ score as of yesterday was 665...When i did the score simulation excercise it stated if i paid my credit cards down 90-100% my score could go up between 745-845...That's a huge increase...Of course it's gonna take time to pay my cards down but i was wondering if i tried to get a credit limit increase if that would help because that way i would be further from my limit?  Any advise on this? 

Also i have a bankruptcy on on my credit that is 8 years old now but it kept me from getting approved for an American Express card...Do you think I may be able to go through the back door and be able to get approved?  I have no late or missed payments on any of my credit reports...They said the reason they denied me was because of the bankruptcy...I'm guessing they didn't even look at the rest of my report but instantly saw the bankruptcy and denied me...Is it possible for this decision to be over turned?

[Anonymous]

If you are only "hundreds of dollars" in debt on cc's, have a garage sale, ebay and craigslist sale.  Sell the stuff you don't use, don't need or don't even remember in the closet, attic, garage, under the bed or WORST in a paid storage unit.  Sell some luxuries you don't really need.  You can raise hundreds this way.

Consider temporarily getting a part time second or third job, if at all possible.  Use these to pay down the debt.  Then ask for CLI.

Asking for a CLI when maxed, to a creditor looks like an alcoholic asking for a drink.  If you pay the cc's first, then ask with scores in mid 700's you stand a good chance.

As for AMEX, they don't do BK very well, if at all.  They are very BK adverse.  I wouldn't even attempt them unless you got your cc's paid down first and got your scores to the levels you said the simulator said you might achieve.  AMEX likes "prime" borrowers, and having maxed cards, BK and lowered scores are not going to get you prime treatment.

Also  remember simulator isn't a guarantee, but you can rest assured that you will see improvement from these steps.

Message Edited by txjohn on 05-06-2009 07:05 AM

[Anonymous]

I am soooo sorry but what I meant was I have several thousand dollars of credit card debt...

[Anonymous]

Okay, well those pesky decimal points do make a difference.

Well, I would still suggest my previous points.  Regardless of the amounts, paying down faster reduces your percentages, reduces the interest you pay and empowers you.  You just won't be able to kill them from the garage sale....but those items collecting dust and losing value sitting around should go to the cause, IMO

AND, the bigger your debt at "MAXED OUT" the more desparate you appear.  You really need to try to get them paid down some before going for CLI's, IMO.  The credit climte now is not like it was a couple years back when credit was easy.  Many cardholders with pristine credit and low balances have gotten credit decreases.

Can you get a second job?  What about the garage and ebay sales? 

Also, do you have a written budget?  Do you know exactly where every penny is going?  If not, do it today.

Cut all the non-essentials and pay, pay, pay.  Those interest charges are just money down the toilet

[Anonymous]

I am very determined to pay these cards down txjohn and i plan to do whatever it takes...I am paying more than the minimun payment on each card...Income tax time I will be able to put a dent in them so I guess I just need to be patient until then...I am not toally maxed out but close...For example my Chase Visa limit is $5500 and i owe $3904, My Chase MC limit is $3500 and I owe $1775, and last but not least my HSBC MC limit is $2500 and i owe $1900...I would really like to consolidate all of these cards to one card but I don't think I can get approved for a card with a limit this high...I'm also trying to stay away from inquiries so I'm afraid to try...

Oh and as for the budget yes I have one and it's very detailed and I stick to it...I just don't have alot of extra to put on the credit cards but I have allowed for some extra money in the budget to go towards the credit cards...

[Anonymous]

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@Anonymous wrote:

I am very determined to pay these cards down txjohn and i plan to do whatever it takes...I am paying more than the minimun payment on each card...Income tax time I will be able to put a dent in them so I guess I just need to be patient until then...I am not toally maxed out but close...For example my Chase Visa limit is $5500 and i owe $3904, My Chase MC limit is $3500 and I owe $1775, and last but not least my HSBC MC limit is $2500 and i owe $1900...I would really like to consolidate all of these cards to one card but I don't think I can get approved for a card with a limit this high...I'm also trying to stay away from inquiries so I'm afraid to try...

Oh and as for the budget yes I have one and it's very detailed and I stick to it...I just don't have alot of extra to put on the credit cards but I have allowed for some extra money in the budget to go towards the credit cards...

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If you are overpaying on your income tax a lot you can go to the irs.gov website and work out how much of a refund you would be due and then it tells you what adjustment you can make to the forms with your employer so that they will stop taking the additional money out of your paycheck - say if your refund was going to be $4000 then you would be able to make an adjustment so that you get like an extra $500 in each paycheck and then you can use that each month to pay down your balances rather than having to wait until next april

[Anonymous]

Oh my goodness Susy I would have never thought of that...I will check into that because you are right there is no sense in waiting till next year when I could be getting the money now and paying the balances down now...The long I wait to pay them the more interest I will be paying...Thanks so much for your idea!!!!