How badly is your credit rating affected if you cant pay off the whole balance?

Question

I'm really worried!! This is urgent!!

Answer 1

so long as you can make your minimum (not reccommended because you will be hit with interest fees) you will be fine

Answer 2

If you're talking about a past-due bill, and you can't pay off the whole balance, the creditor will usually take the rest in monthly payments until it's paid off. If you just leave it with an unpaid balance, it can go on your credit report as an "unpaid collection" and it does have a harsh negative effect on your credit rating. Of course, if it's already ON your credit as a collection account, then paying it off will not have as much effect because it will still show up as "paid collection" which is nearly as bad as an unpaid collection.

The best thing to do is work out a repayment plan to avoid having it show up on your credit.

Answer 3

Not sure the context here. Are you settling with a bad/old debt for less than the full amount? That really DOES ding your credit but numbers-wise I dont know. If you can, negotiate that they wont report it as a settlement.

If you're talking about carrying a balance on your cards, that's totally fine-- but try your best to keep it below 33% of yoru limit or it starts to ding too-- you can stil be in the 700's with high balances but its hard to do. I'm at about 70% of my limit and its holding me back-- so I'm paying down those balances.

Answer 4

Good day, Im sorry to hear that...I have a resource for you which I myself used whenever I am having credit issues, I hope you'll find an answer from either of these two:

http://www.newhorizon.org/Info/credit-improvement-articles.htm
http://newhorizon.org/articles/

Have a super day! goodluck

Answer 5

They care about you paying the miniumum balance on time each month.

They don't care if you carry a balance. However, it will cost you a lot in interest.