because i am trying to get a better apr rate credit card, but my credit limits are high to what i actually make (limits of all cards =12,000, and i only make 12,000 a year) someone help please!
2007-07-27 10:51:49 · 5 answers · asked by Gumaro S 1 in Business & Finance ➔ Personal Finance
I make 930 a month
i have an auto loan for 15000 that i just got, a maxed out credit card of 4500 with a 16.9 APR, a nordstrom card with 5000 available and 900 used, and an open and unused macys and mervysn account. i pay exactly 350 in other bills plus my car payment of 350, so i only have 230 each month for bills and find my debt never going down. That is what is driving me crazy, I am lost and just always thinking about it.
2007-07-27 11:06:41 · update #1
Well first off do not lower your credit limit on the credit cards. This will lower your available credit and will hurt your credit score by making you income/debt ratio higher. Your best bet is to find a credit card with a low fixed rate and transfer all your balances to that card. The Nordstroms card probably has an APR around 24% which is a killer to try and pay off. The other card with the 16.9% is a reasonable amount for a standard card, but if you go to your bank you may be able to get a card with a rate around 9%. You would be amazed how much even a 1% interest point deduction can help you pay off a card.
If you haven't had the cards with $0 balance for a long time cancel then. Keep the 16.9% card open so that you have a maintained credit history. Also review your car insurance and see if you can't have a higher deductible to help lower your monthly bill. Also check to see if you have any unnecessary insurance. There is no reason to insure a car for $20,000 if its only worth $10,000.
2007-07-27 11:22:43 · answer #1 · answered by Robbo_op_98 5 · 0⤊ 0⤋
As some of the other respondents have identified, one of the factors reviewed is credit outstanding as a percentage of credit available (see #5 in link). Therefore, lowering your available credit limits without lowering your current balances could drive down your score.
Good luck!
2007-07-27 18:02:30 · answer #2 · answered by Casey J 2 · 0⤊ 0⤋
Control the spending and show that you are paying on time within the payment cycle..Its your debt to income ration you need to be worried about .. lowering the limits AND paying on them in a consistent timely fashion will ultimately help you.
by the way you shouldnt have done the car loan and those sharks new better ..unless you have unreported income.
2007-07-27 18:10:19 · answer #3 · answered by Jackofalltrades216 4 · 0⤊ 0⤋
High limits can be a problem. You don't say what your balances are. A number used to calculate credit score is balances as a percent of available credit line.
2007-07-27 17:57:32 · answer #4 · answered by Ted 7 · 0⤊ 0⤋
never lower your limits. that will decrease your debt ratio (debt on cards/available credit) which could lower your score.
2007-07-27 17:55:56 · answer #5 · answered by czwtrpolo2 2 · 1⤊ 0⤋