Jump to content

New to credit repair, need help!


bookgirl
 Share

Recommended Posts

Hi,

I just joined the forum and I've been reading through some of the posts. Great advice. These are strategies I never even knew existed (bumping?!). At one point I believed that it would take me a solid 7 years to get my credit scores up (I've had bad credit for as long as I can remember, but I'm working on it). Now I know that's not true!

By disputing information on my reports and paying my bills on time I've seen my scores jump into the high 500s (from the low 400s/500s) over the course of about a year. I have 7 cc accounts open now. Because my credit was poor, most of my limits are low (from $350-$800 with the exception of Best Buy--$3,500). I'm paying them off and so far I've brought 3 down to $0 although I continue to use those cards so that they'll report to the CRAs. I pay them off completely once the charges post to my account. I'm still close to being maxed out on the 4 remaining cards though, which I know is hurting my score.

My questions--


  • I'm thinking about asking for credit limit increases on some of the cards once they've been paid off for a while and once some old late payments drop off my report. Should I do this? Will these requests show up as inq on my report?
    Also, should I close any of these paid off accounts (these are relatively new cards. I've only had them 1-2 years)? Or will this negatively affect my score because my debt to credit ratio will go up?
    How exactly does bumping work? I have lots of inq on my reports because I went through a phase where I was addicted to applying for new cc. :oops:

Any other advice???

Thanks!

Link to comment
Share on other sites

I think the best thing to do right now is pay down the cards that are close to be maxed out. Instead of continuing to use the cards that have a zero balance and paying them off in full each month don't use any cards until the others are paid down to zero.

I don't know if closing cards will hurt your score - so with that said just take these cards and put them in your sock drawer and don't use them.

It's great if you can get a higher credit limit that will help you out, but do it for the cards that are close to max limit that will make them look better.

Good luck.

Link to comment
Share on other sites

Right now you should concentrate on paying down. Your score may also be hurt by having too many revolving accounts open, so you may want to consider closing one or two of your high-balance credit card accounts at their current terms and just continuing to make monthly payments on them. If you do this, it does not mean you have to pay off the balance in full...it just means that you can't use the card to make purchases any longer while you are paying it off. This will slowly improve your debt-to-income ratio because open credit cards count against you for their full limit not the balance.

Link to comment
Share on other sites

I was actually inspired by reading the forum to pull my credit reports again (I haven't looked at them for 6 months) and was pleasantly surprised to see that my scores have finally reached the 600 mark! [:-)x

Anyway, they have this FICO score simulator which shows how different actions will affect your score and supposedly my score will go up by like 70+ points if I pay down most or all of my cc debt over the next 24 months. So it sounds like you're right. But I thought it was bad for your score to close an account that still has a balance. Thanks for the advice!

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.