Credit Ratings...PLEASE READ!!?

Question

OK, i got a capital one credit card and my limit was $200.00...i have not paid it in like 4 months...before i got the credit card i had no fico score...how do you think this will effect my score? I want to go shopping for a car but i dont know what my fico is like..is there any where i can check it for FREE? Please help!!!

i just paid $50.00 on my cap one credit card. My min. payment is $297.00...thats why its so hard to pay the min.....

what if i pay the remaing balance on the card so that i am in "good standing"....will my score go up? How long will it take?

Answer 1

I agree with Mom of 2, though her estimates are lower than what I have in mind.

I would say that if that card is pretty much your only item on your reports, that if your scores are in the 400's it would be on the very low end. My guess is probably in the 300's.

With a score like that, depending on your state cap law for interest rates, I would guess that you would have to pay a much higher rate than what Mom of 2 mentioned.

There is no place that you can get your "scores" for free. You have to purchase them.

You can get your credit report for free from annualcreditreport.com.

As for you scores, you can go to myFico.com and look for the score simulator.
If you are honest in entering your info, you should come up with a fairly close score value.

I would recommend that you take care of you credit first before you start car shopping. Pay your cap one card off. If it is not closed yet, don't close it.

Build and rebuild your credit. Start with having someone add you as an authorized user to their cards if you can. Be sure that if you are added, the cards you are added to have a great history and low utilization or you would be defeating the purpose.

Then after they start reporting, try to get one or two store cards. You might try Chevron/Texaco. They have a rebuilder card that they may offer if you don't qualify for the regular gas card.

Apply for a secured card from one or two of the following companies, Bank of America, Orchard Bank or HSBC.

If you take care of your Cap One card and get added as an AU, half your battle for better credit will be done. Though you will have lates showing as negatives from the Cap One card.

It will take time to build up your credit. If you are in to much of a hurry to purchase a car that you cannot wait until you have better credit, probably the only places that will deal with you are the buy here, pay here type of car lots.
You will be paying a high price for not waiting until your credit is better.

And like Mom of 2 mentioned, how can you justify putting yourself further in debt when you can't even make a $15.00 payment?
it's not going to look good to any lender that you cannot/will not take care of that low limit on your Cap One card.

Answer 2

Okay, I'm guessing your minimum payment is $297 becuase that is what you are over the limit, plus fees and such, correct?

Call them right now, and tell them exactly what you can pay. You will be able to set up payments over the phone that will be spaced over the next 6 months or so. They will help you by cutting some of their late/overlimit fees, beucase you are calling them and trying to work it out.

A 30 day payment hurts your score. 60 days is worst. 90 is WORST! You can't check your score for free, just your report-- and I'm guessing that your score is in the 300-400 range, which is really poor.

So here's what you do: GET YOUR CARD under 50% of the limit. Then use the card to check your credit score. If its not atleast 580, keep working at it and get that car loan later.

And FYI, most car loans have payments of $200-300, for a very average car. If you can't pay ONE Payment of 297, you shouldn't be getting a car.

Answer 3

capital one has got you know. you just raised your intrest rate through the rough. that's why your min blance is so high! call them up, talk to some one on making the payments in a more affordable way. After that: please cut up your card, and say no no to credit! This will effect your credit score,and buying a car. You are showing them that you are financially irresponsible. Anybody can sell you a car, but the trick is how you are going to pay the loan back. You might get hit with high interest rate on that, because of your credit, and don't fall for those no money down deals either, the more money you put down, the better your interest rate may be.

Answer 4

Since this is the only credit you have, it is probably around the 400's, which is not good at all. For a car, your best bet would be Drive Time. Either way, if you get approved, your interest rate will be around 18% or more. God Bless.

The real question is why are you trying to buy a car if you can't make a $10-$15 min. payment to a credit card?

Answer 5

Your credit rating may be very low seen as you have not made payments for 4 months on your credit card, is it now with a collection company?

It is now be highly unlikely that you get a car on finance at a low interest rate or at all.

If they do accept you for the car finance, sont be suprised if they either ask for a deposit or charge you a higher rate of interest.

Answer 6

Call Capital One and work out a payment schedule...AND stop making charges unless you plan on paying it off.

By not making a payment in 4 months you are really screwing yourself.

A Good credit rating has its perks.

Answer 7

You said the minimum payment was 150% of your limit. How did you manage that. I guess you credit score is terrible. You can BUY your credit score from myFICO.com are any of the credit bureaus. A free credit report is available from https://www.annualcreditreport.com/cra/index.jsp
I haven't found the score for free anywhere.

Answer 8

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