Credit Card Debt Credit Score

Hello,
If I pay off $75k which is my total amount of credit debt, will this increase my credit score? I am revising this question I just asked earlier. I have no other revolving debt than this. I am sorry for the lack of information in the previous question. Thanks for all the help out here!

YES YES YES.

1. Don't Close the Cards
2. Don't let future balances pass 50% of Total Line
3. Make all Future payments on Time
4. Don't Open any more Cards
5. Don't purchase anything Same As Cash BBQ Beds etc

2008-09-21 11:25:26 by ParvardigarBaba

www.debtplan.org Bad Credit Debt Consolidation, Consumer Credit Counseling, Debt settlement, Debt Negotiation, and Bankruptcy are subjects which ...

I have several accounts on my credit that are all in good standing. I just have one credit card with $25,000 in debt. I was making payments on it but when my husband was laid off, I couldn't make payments. It's over 90 days due and I want to settle the debt but I am afraid of how it will affect my credit score and what I can do to make sure it is not too negative on my credit. Any advice?

If you are 90 days past due, it is already a negative on your credit. The credit card company will probably be sending you to collections.

At this point, you can try to work out a settlement with credit card company but they are not going to accept small payments over a long time. If you want to settle for less than the full balance, you will have to have a lump sum. The account would be noted on your credit report as charge off/paid -- a negative. You would receive a 1099 for the forgiven portion which would have to be included in your income tax return.

Have you considered credit counseling? Check here for a NFCC member: http://www.nfcc.org/. These are legit, non-profit credit counseling companies. They offer debt management progams for a small fee. They don't settle your debt. They negotiate lower interest and payments so that you can pay off all your debt.

While in the program, it is noted on your credit report. However, upon completion, that notation is removed and you will have decent credit.

2009-02-18 10:49:57 by operamemartexpo

Price: $14.99

I've been unemployed for a couple months, and the credit card payments are starting to hurt.

If I negotiate with the credit card company to reduced my debt or monthly payment, will this somehow hurt my credit score.

I plan on refinancing my mortgage when I get another job, and I don't want my score to be hurt.

The credit card company may POSSIBLY be persuaded into reducing the interest rate which, in turn, will reduce the monthly payment, but they arent going to reduce the amount that you truly owe. If you bought a $600 stereo, there is no reason why you should be allowed to negotiate less than that. If you defaulted on your credit card payments and the debts were sold to a collection agency, you can negotiate with THEM for a smaller amount, but the late payments, the referral to a collection agency, and the payment of less than what's owed will ALL hurt your credit significantly. About all you can do without damaging your credit would be to plead with the credit card companies to lower your interest rates. I kind of doubt they will though since they only care about their own financial well-being. If, by some miracle, they DO decide to reduce your interest rates, they may also require you to surrender the credit card. The account, naturally, stays opened until it is paid-off, but you wont be able to further charge anything onto it. If they're going to agree to take less money, they may require a good faith gesture on your part that you wont take advantage of it and charge new things on your lower interest rate card. Thus, they may cancel your charge abilities.

2009-05-13 23:42:43 by Cutman

Price: $24.99

My husband and I have a combined credit card debt of 10k we both have credit scores in the high 600's but would like to buy a new car and wipe out our credit card debt. If I sell our current car that we own and pay off the credit cards how long will it take for our score to go up?

that all depends on the limit on the bank. if it was less than 50% on each card that was paid it will not have a huge impact but will raise the scores. If it was a high limit on the bank it will have alarge effect in the next reporting. Know this not all comanies repot monthly--some just quarterly

2008-05-19 13:00:28 by mcnivenja

I recently heard on radio about a debt free program. They officially negotiate on your behalf with the credit card companies. What may be the Cons? Is it safe to rely on Debt Settlement Program to free from one's credit card debts? How may it affect one's credit score?

Do not fall for these debt consolidation scams. The debt will still be there and also are your spending habits that got you there in the first place. You won't get yourself out of debt by borrowing. The only true way to get out of debt is to change your habits. One way is to get yourself enrolled in a good debt reduction program. There are many good ones to choose from. Sometimes it can be hard to choose the best one for you. You can visit the web site below for reviews of some of the best ones.

2009-01-23 19:10:47 by Peace Lover