In Desparate Need of Advice

[Anonymous]

The site that was edited out isn't the answer. It's an AU service, which is going to cease having an effect on FICO scores soon anyway.

Hope you don't mind, Greenpea, but I'm here to be just a little "in-your-face" and tell you that the reason your scores are moderately low (and 646 is not a bad score, just a sub-par score) is because your credit card balances are so high. You're pushing 80% utilization on a couple of those cards. So the FICO algorithm sees you as higher-risk, and rightfully so. The answer isn't to hide behind an AU and Band-Aid the problem, but rather to change the way you manage money.

Some of the other advice you were given is excellent: lower spending and increase income. As you pay those CC balances down, not only will your credit score go up, but your interest payments will go down. I'd say unless you've got a recent baddie anchoring your score, if you pay those balances down to, say, 50% over the next six months, and don't miss any payments, your credit score will likely go up 20 to 30 points. Utilization really does count.

Message Edited by Raine on 09-26-2007 03:21 PM

[SmartCookie]

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MidnightVoice wrote:

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SmartCookie wrote:

Yes and the link should be getting removed.  It's his/her first post, which was pretty good overall... we all make mistakes. 

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I think it will go bye Bye soon 

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SmartCookie wrote:

  Especially when we don't read the TOS (who really does?)      

 I read them 

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Goodie goodie!   

I do however read fine print on everything else ... I just can't stand making my way thru TOS before I sign up on things.  

[Anonymous]

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@SmartCookie wrote:

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@Anonymous wrote:

Isn't BAiry's post against the rules?

....Besides, I think that is a scam site.

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Yes and the link should be getting removed. It's his/her first post, which was pretty good overall... we all make mistakes. Especially when we don't read the TOS (who really does?)

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I deleted it...but I also wanted to point out to the OP why using sites like that is a bad idea. I don't want folks out there to think we delete such links because they are some kind of secret, magical fix for bad credit that we're trying to hide from the world. We delete the links because they are at best charlatans, and at worst downright detrimental to those who use them.

The credit scoring system actually is doing the OP a favor, giving him/her a good incentive to make real, durable changes to money management tactics that will help the individual now and in the future. Adjusting the barometer up a few tenths of an inch doesn't make an approaching storm veer off, and using AU tricks to mask a decline into insolvency by tinkering with credit scoring doesn't make much sense either.

[MidnightVoice]

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TheNewWorldMan wrote:


The credit scoring system actually is doing the OP a favor, giving him/her a good incentive to make real, durable changes to money management tactics that will help the individual now and in the future. Adjusting the barometer up a few tenths of an inch doesn't make an approaching storm veer off, and using AU tricks to mask a decline into insolvency by tinkering with credit scoring doesn't make much sense either.

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Ok, so the World is coming to an end, TNWM is defending the FICO scoring system  

[haulingthescoreup]

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@MidnightVoice wrote:

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@Anonymous wrote:


The credit scoring system actually is doing the OP a favor, giving him/her a good incentive to make real, durable changes to money management tactics that will help the individual now and in the future. Adjusting the barometer up a few tenths of an inch doesn't make an approaching storm veer off, and using AU tricks to mask a decline into insolvency by tinkering with credit scoring doesn't make much sense either.

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Ok, so the World is coming to an end, TNWM is defending the FICO scoring system

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ROFLMAO!!!!

MV, you nailed it! When I started reading these forums, I started from the oldest posts first. Not that long ago, TNWM's posts started at grumpy and zoomed to psychotic! And now, here he is a greybeard moderator, showing his love for FICO scores. Love it.

[Anonymous]

greenpea,

you definitely came to the right place for help, and you've got a lot of good advice (for the most part). I included a link here to another thread that talks about different ways to tackle debt.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=4120

it sounds to me like your steps should go similar to this:

1. call all creditors and ask for reduced APR. if your history is good, they should at least knock off a few points. this will make your payments go a little further each month.

2. take the info on all your accounts and put them in a spreadsheet. see which ones are costing you the most money, or would be the easiest to pay off, etc. you can do a lot of planning with a spreadsheet because it makes it very easy to test different scenarios. this tool is invaluable.

3. read the thread above and see if any of the methods work for you. snowball plan is a really good one.

4. the job thing: you said you were working as many hours as you could. are your hours limited because they don't have more work to offer you or because you are simply running out of daylight? either way, instead of trying to work more, you may consider trying to find a better paying job for the short term. easier said than done, i know, but it's worth looking right? also, are you working the type of job where you could simply ask for a raise? even an extra $1 per hour would make a difference. worth looking into.

Good luck, and remember, you are not doing so bad, and the worst case scenario for the short term is that you keep paying on time every month and whittling those balances down. then you'll graduate and be able to work more hours or get a job in your field and things WILL GET BETTER.

[Anonymous]

Again, thank you all for your advice! I don't even know what the AU thing is, and I didn't see the original link--so no worries on that one. As far as working more, as I said, I am actively pursuing greater income. Right now I am limited by both available hours and hours in the day. As I am sure you know, grad school is quite demanding and while I am more than willing to work hard to earn money, I am not willing to jeopardize my education in doing so. Over the past few months I have drafted and stuck to a very detailed budget, completely cut out credit card use etc. It feels like a great first step. I am mentally prepared to dig myself out of this whole. However, I want to make sure I have the best tools to do so. I fully understand the snowballing approach and I have devised the list to go about doing that. I'm just wondering if getting a loan from prosper and shaving a year off of my payments would be a wise decision. I'm not looking for a magic fix, just a wise course of action. I have had a couple late payments on some of my cards. Is it still possible that they would lower APR/increase CL at my request? p.s. what are you referring to by AU? oh, and I'm a girl...in case it's easier to type her instead of his/her

[Anonymous]

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greenpea104 wrote:
Hello everyone,

I'm new to this board and excited that I may have finally found a resource center to get me on the right financial track.

I'm stuck in a pretty big debt rut and would love some advice as to how I can get out of it. I am currently in graduate school and have racked up a lot of credit card debt (prior to and during school). I would like to get my fico scores up as well as get a good chuck of the debt paid off within the next year before i graduate and lots of student loans kick in. My biggest problem is that I'm not able to pay much more than the minimums on the credit cards.

The breakdown is as follows:
bal/avail/%
1. 11012/14000/24.65
2. 3517/4000/26.99
3. 1150/3000/24.44
4. 1413/1600/28

My current TU score is 645, and when I check all three a few months ago the TU was the lowest if the three.

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I see you said you set up a budget.  That is the key, IMO, to get out of this debt.  I would do the following to help you get further on track.

1. Call the credit card companies up, explain the situation, I.E. you are overcome atm with financial difficulties.  You are their help to remedy the situation.  Ask them, if they can just put the card on some type of pay back program.  Basically i have heard that some companies will lower the APR to a really good % with the understanding that you will pay it all off before you start to utilize it again.  It never hurts to ask.  I would call all 4 and ask this.
2. Pay off one card at a time.  Do not pay more on all 4.  What i mean is, make min payments on 3 of your cards, then put as MUCH as you can on the 4th.  When that card is paid off, you then take whatever money you were putting into it and add it to the min payment you were making on another card.  Rinse and repeat until all debt is gone.  Yes you will eat some bad APR fees from the other 3 cards making only min payments but in the end it will work out. 
3. Keep faith and follow your budget and you will make it out of debt!

Robo

[Anonymous]

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haulingthescoreup wrote:
ROFLMAO!!!!

MV, you nailed it! When I started reading these forums, I started from the oldest posts first. Not that long ago, TNWM's posts started at grumpy and zoomed to psychotic! And now, here he is a greybeard moderator, showing his love for FICO scores. Love it.

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We also have a secret treatment center outside of the Sleigh Center. Never heard of Stepford mods?

[Anonymous]

Sent you a pm OP