Is $1900 in credit card debt bad?

Question

I've had the card since '03 and I admit that I've been a little careless with it in the past, but I've managed to bring my balance of $5,000 down to $1,900. I almost always pay over the minimum amount required per month and I hardly ever use the card anymore. I haven't had late fees in a couple of years.

I'm a little worried because I know having good credit is everything nowadays and I'm hoping to put a down payment on a car soon. I don't want any problems so I'm trying to pay it off ASAP. Is this an unreasonable amount to have?

Answer 1

I think that you are trying to put all this info in to convince us that you have ok credit to get a car. This isnt necessary to do. If you pay off that card like you want to there shouldnt be any problems.

Answer 2

For Credit and finance solutions I recommend this website where you can find all the solutions. http://creditandfinancesol.info/index.html?src=zqqkeIC21

RE :Is $1900 in credit card debt bad?
I've had the card since '03 and I admit that I've been a little careless with it in the past, but I've managed to bring my balance of $5,000 down to $1,900. I almost always pay over the minimum amount required per month and I hardly ever use the card anymore. I haven't had late fees in a couple of years.

I'm a little worried because I know having good credit is everything nowadays and I'm hoping to put a down payment on a car soon. I don't want any problems so I'm trying to pay it off ASAP. Is this an unreasonable amount to have?
Follow 14 answers

Answer 3

From what you have said, it sounds like the $1900 in credit card debt is manageable on your income, so therefore, it's not bad.

If you get offers for other credit cards in the mail, ditch them, but that in itself gives you an idea that you are eligible for a car loan, because if you can't qualify for a credit card, then you normally can't qualify for a DECENT car loan.

My *only* concern is you say you hardly ever use the card anymore...figure it this way...do you use it because you're short money and NEED to use it (which means you're taxxed at times) or are you just using the card for impulse purchases?

If you HAVE to use the card, even if hardly...I would reconsider getting a car loan right now, because a car lender isn't as forgiving as a credit card...if you're late, you stand to lose your car.

In any event, best of luck to you, and KUDOS for working on your credit instead of ignoring it and waiting 7 years for it to be gone!

Answer 4

That would depend on your income level, but $1900 isn't generally bad.

Actually, if you've been regularly paying off your credit card (as you described), you are helping your credit by 1. reducing the amount you owe compared to the amount you could potentially owe, and 2. making regular payments on your debt.

Answer 5

All credit card debt is bad. Out of all types of financing (short of a loan shark), credit cards are tyically the worst.

1900 is small compared to America, but the best is to be debt free. Once free of debt, use the card, but only to get that % back for free (like Discover, AMEX, etc.).

Answer 6

Depends on your income. I have alot more then that and still have a very good credit score. If you have no income or very little income then that could be considered alot, but if you make at least 20k a year that would be considerd VERY minor debt. I think the average person have around 7k.

How much debt you have has very little to do with your credit score. Alot of people dont realize that. The people with the highest credit scores out there have carry debt, or carried debt at some point in their lives.

Answer 7

Bad credit is one of the worst problems to have... however there exists a solution.

I will hereby talk from my personal experience.

I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is a straight to the point ebook with question and answer I found :

http://umgarticles.atspace.com/debt-consolidation.htm

if it helps kindly remember me in your voting!.. cheers!

Answer 8

OK, let's take a closer look at this. You had brought it down from $5K down to $1.9K which means that your limit is at least $5K. So you have roughly 38% available credit that's used. The rule of thumb is to use 30%. So with that said, you're pretty much on track with that. Granted, if you limit is higher than $5K, then you're definitely on track. Keep doing what you're doing. And once you pay off the card, don't close it. Doing that would only kill your score by removing the account, you would shorten your payment history and available credit. Just keep the balance low to where you can make the smallest minimum payment possible to show activity, yet pay it off if need be.

Answer 9

This really depends on your income and your tolerance for risk. I would say that a lot of people are in worse shape than you, however.

If you make $1900 a day at work, its no big deal. If you make $19,000 a year it is a bigger deal.
It sounds like you are making the right decision to get you debt under control though.

Answer 10

No, that's not too bad, especially since you've paid it down from $5,000. That's great. As long as there's a sizeable gap between how much you owe and your spending limit, and you've paid on time for at least 6 months (which you have) then your credit score should be pretty good. Why don't you check your credit score and find out where you stand? And keep up the good work. Sounds like you're on the right track.