I will be able to pay off a $1400 credit card debt soon. I want my credit improved afterwords. Is there anything I can do to keep it from going down afterwards? I've heard of this happening.
2007-02-02 08:23:16 · 7 answers · asked by cody 2 in Business & Finance ➔ Credit
This is a charged off debt that has changed hands several times because of companies merging. I no longer have an actual card.
2007-02-02 08:37:29 · update #1
A few things...
Pay your bills on time. Use your credit, but pay it off each month, or at least pay more than the minimum due.
Don't close down your credit card. Apparently in the US your credit is partly determined by your debt to credit ratio. So reducing your debt without reducing your credit will help you.
If you're rebuilding from really crappy credit, consiter a secured credit card. It works much like a debit card where you have a certain amount in an account and can only spend that much. In other words, it's prepaid.
Just take it one month at a time by paying your bills on time and using your credit card wisely. Keep track of your credit report, too -- watch it to see what is affecting your credit. It would also be good to make sure you're getting the best interest rate that you can. You can consolidate at a lower rate. That won't nessesarily help your credit score, but it saves money.
Good luck. ^_^
2007-02-02 08:38:58 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I'm not expert in this area but I understand that credit is primarily based on you payment history and liabilities, what you owe. When you pay off your credit card, you reduce your liability. That is not to say that some credit card companies would not love to have you pay the minimum every month for the rest of your life. If someone is going to finance your car they want a good payment history and liabilities that will leave you enough income to make your car payments.
2007-02-02 08:36:14 · answer #2 · answered by JOHN C 1 · 0⤊ 0⤋
"keep the card with a small balance on it that you pay off each month."
this is COMLETELY untrue.
having a balance does NOT help your credit.
make sure you have a healthy credit line (asking for no inquiry increase) and make sure you keep paying your cards on time. take that money and save it at www.ingdirect.com for 4.5%.
read more about credit here www.creditboards.com
2007-02-02 08:34:49 · answer #3 · answered by Anonymous · 0⤊ 0⤋
cut up your credit card, contact a credit reference agency and check your status. if debts are paid in full you should be able to get them removed. check your web for regulated credit agencies.
hope this helps!
2007-02-02 08:33:45 · answer #4 · answered by emzc 4 · 0⤊ 0⤋
keep the card with a small balance on it that you pay off each month.
2007-02-02 08:29:27 · answer #5 · answered by geezer 51 5 · 2⤊ 0⤋
You need to do a pay-for-deletion letter to the CURRENT credit agency holding your charged-off debt.
See hyperlink below for the necessary form letter.
CERTIFIED RETURN RECEIPT REQUESTED.
NO COMMUNICATIONS OVER THE PHONE PLEASE!
2007-02-02 10:40:46 · answer #6 · answered by DaMan 5 · 0⤊ 0⤋
Have a party
2007-02-02 08:38:05 · answer #7 · answered by John W 3 · 0⤊ 1⤋