Would i have a bad credit rating?

Question

I'm 21, i have a $5000 limit credit card. I didn't realise until it was too late, but i am useless with money, and i've reached my limit.
Being an idiot, i'm overdue with my payments, and i got a 'friendly warning' (direct quote) telling me to pay the minimum charge and keep up with payments from now on.

This has all happened in the last three months, and i am now paying it off frequently.

My question is, would i now have a bad credit rating? How much would it affect me in the future, and is there any way i can fix it before it could bite me on the ****?

Answer 1

Chances are that your rating isn't affected by any delinquecines, BUT your debt-income ratio is high since you've maxed out the card

I would strongly urge you to:

1. Stop using the card until you pay it off completely

2. Pay more than the minimum payment. By just paying the minimum, you're barely paying the interest of and whatever's left is going to the principle. It would help if you pay it early and often until the balance is 0.

3. Use the card in dire emergencies, and if you do have a need to use it, charge only what you can pay off evey month

Answer 2

Your credit rating will go down any time you are 30+ days past due on a payment. It's good that your account did not go to collections, however!
There really is no way to fix it. Like all negative information, the fact that you were late will stay on your credit report for seven years. The fact that does work in your favor, though is the fact that most lenders will only consider the past 12 months of payment history. This rings true when you apply for a major loan such as a car or mortgage. Since you are back on track, continue to pay your bill on time. Your credit history will only suffer a minor setback (compared to a charge-off or other ding).

Answer 3

Right now, your credit would not look good. Start paying at least the minimum payment, more if possible, and ON TIME every month. After 6-12 months, if you apply for a loan, you might be asked about the past, but your more recent history will show the improvement. Credit reports show if you paid on time or late every month. Also, do not ever bounce a check because that can show up as well.

Answer 4

Pay at least the minimum on time and then pay even more! You're going to be eaten alive by the interest if you don't work on paying it off! Your score will suffer because you've maxed out your card, but you could still possibly qualify for a 0% card. My suggestion: get a new card (this will temporarily lower your FICO score) that offers a 0% balance transfer, but don't purchase anything on the new card. Make new purchases on the old card and pay that off on-time and in-full every month. Use anything left over to pay off the 0% card. Use every penny you have to pay off your cards and live frugally until you do. Do *not* get fast food or eat out (bring a bag lunch to work, but something you made at home). Do *not* go out with friends if it's going to cost you... you have to get this debt under control ASAP!

Call your current credit card company and see if they'll lower your interest rate. Tell them that you're thinking of transferring your balance and see if they'll come down. If they don't, transfer. If they do, you may still want to consider transferring. I'm also 21 and learned to manage my money starting with a low-limit credit card. (I chose to have a low limit.) I qualify for a high-limit card but if I need to make a purchase that large, I could just take out a personal loan (at a lower interest rate... my credit card's APR is 10% and is $1,000. The only thing that I've needed that I couldn't pay for with that was a digital SLR, but I don't buy cameras over $1,000 often *LOL*).

Answer 5

Honest truth? It's very likely to affect the credit rating because almost all credit card companies report to credit bureaus.

However, if you are careful in the future yo should be all right.

Visit http://www.cheap-credit-cards.org for more information

Answer 6

Its probably not stellar, but it wouldnt be terrible yet since it has not gone to collection.

We would have to see other aspects of your credit history to know for sure though. Like how long have you had this card, do you have other cards, and have you ever let bills go into collection?

Answer 7

once you become 30+ past due, it can be reported to a credit bureau. Once this happens.....your score can drop up to 60 points PER OCCURRANCE