the debt was paid off after xmas
so its been like..4months now for him
i told him to not goto capitalone
but..try to work with the banks lowest teir card

i unno
i've heard bad things with capital one
haha

hmm... im wondering now, since i already have a r9 on my report... does it matter if i get another one? right now, i can try to come up with a fixed amount of money by monday which is quite difficult for me, should i even try to recover my second credit card since i already have one in the collection?

there are secured visa, where he puts money aside and thats the limit for him, so he can build his credit up. Which is the best step.


Thats like your decision.

Speaking of credit bureaus, I read online and have heard from other friends that to increase your credit/FICO score, it would go up quicker if you had a huge limit of available credit but used as little/none of it as possible.
Does anyone know if this is true?

I disagree. I'm pretty sure the more credit you have, the lower your credit score, as you are a bigger risk to the bank.

its better to get a card and buy small ammounts and pay it off right away so you can get a good rotateing credit thats what the banks look for. Basicly to show you make your payments etc.

im scared. what if they dont send me a letter, what can i do about it?

get proof before you send in the money fax/email etc.

then pay it off and ask for a settlement letter the same way :thumbsup:


if they don't do it don't pay since you don't want them screwing you over.

It's called utilization. It can ruin your ability to receive further credit as it shows the current applicant has access to a lot of revolving credit. It doesn't lower your credit score/beacon score itself unless the number of accounts are in total excess.

The best thing anyone can do is keep it to a minimum and don't get too bogged down with having loads of credit. Even if it's all paid off, I've seen people have trouble getting mortgages because of having large LOC's elsewhere.

not entirely correct.

The credit rating does depend on how much credit you have and how much you are in loan, but it also looks at your debt equity ratio. If you constantly have $10,000 in credit card balance, but you have an liquid equity of say, $100,000 in your accounts/stocks/whatnots, then you actually would have a better rating if you pay those $10,000 off monthly.

It is more of a ratio, rather than just "how much debt" you have, or the higher debt you have, the lower the rating.

You're supposed to have hard time getting mortgage if you have a large LOC or any loan (student/car) anywhere.

It all depends on how much income you have left to pay your mortgage after everything is said and done (your utilities/other loan payments/whatnots).


Follow the advices posted in this thread as I think all of them will work in your advantage.

1) Stop using your CC
2) Negotiate a settlement ASAP
3) manage your finance better from now on and it is NEVER too late.

You'll be amazed on how much more you can "get" by not getting them all "now". Save and spend what you can afford.

+1

Easiest way to build your credit and they do work.

your FICO score depends on ratings from 3 different agencies and they all rate your credit slightly different. (Equifax, experian, transunion)

Try not to find a way to build your rate "quickly". There is no short cut (whether by having large unused credit, or by having large amount of loans and pay them off promptly and on time). It all takes time.

But I do recommend people, who can manage their money in some way (i.e. spend what they make and not over-spend), to use credit cards as much as they can.

I am not saying he/she should be using credit card and go buy a $3000 TV, when he/she cannot actually afford that $3000 TV.

I am saying, you should probably use your CC to buy those $30, $50 weekly groceries, or make that $50 month cellphone payment on CC (if free of charge of course).. and accumulate maybe $1000/month balance while you have an income of, say, $2000.

Point is, again, dont overspend and spend what you have. I guarantee you, by doing this for 2-3 years, even if you have a bad rating now, you'll at least move into the next bracket of maximum allowable loan, when you might need it the most down the road.

Also, with advancement of online-banking, you can just print everything and download every item to your Excel spreadsheet and just see where you spend your most money and even analyze on it. (you dont even have to spend money on softwares such as Quickbook, which is very good BTW).