134 People Helped
Member Since: October 2015
About Me: Master of the obvious
I hear you. Everybody "wants" a low monthly payment. But sometimes what you "need" is a higher monthly payment, until you get out from under that debt.
When I hear someone talking about wanting to lower their monthly payment, its generally because they are either in over their head, or because they are getting ready to make another bad decision and get further in debt...so they're lowering one payment to make room for another payment.
I don't know the details of your situation, but do yourself a favor...attack your highest interest rate (assuming that 2000 is spread among more than one card or loan). Make minimum payment on your lowest interest card, and throw everything you can throw at the highest interest card. Don't take on any new debt, until you're in control of current debt.
Live within your means. That's easier to say than it is to do...but its best thing you can do for yourself and your family.
IllustriousPotentate's response was:
Why don't you use the personal loan to pay off the credit cards and use your money in hand for disney?
I know that sounds like another version of the same sentence, but really its not. Its an entirely different mentality. Using the money in hand for the trip is more responsible "mindset" and a new way of thinking going forward. We don't use credit for niceties like that. We save our money and spend it for the "wants" in life. Develop good habits like that, and your credit future will be very bright.
Paying off the credit card with the loan is also a strong move in more than one way. A loan is term, not revolving debt. It will last x-number of months and be done. Credit cards are forever (it seems). So, I always recommend transferrng card debt over to a loan when feasible.
But the loan also strengthens your credit history. The Term loan is a different kind of credit and looks good on your credit report. So pay that card off, and leave it paid off. Don't close it. Keep it open, for credit limit ratio and age of credit history factors on your score...but put it away somewhere and only use it sparingly.
Not all medical bills show up on your report, because not all hospitals report to the credit bureaus....in fact, the vast majority of them do not.
Generally, your medical bills start showing up on credit reports once they've gone to collection. that's a whole different issue....and yes, you absolutely need to clean that up before trying to buy a home.
You should always strive to pay off your credit debt. don't carry a 30% balance just for the sake of carrying a balance.
The lower the utilization ratio, the better your score will be. In fact, it'll probably jump considerably if you get below 30%...and jump again when you hit 9%.
But don't close those cards when you pay them off. Keep the account open and just use it very sparingly and pay it off each month. Closing it would hurt your utilization ratio.
How old is this card? If its recently opened or if you've recently been added to it...then it can take a couple of billing cycles to start showing up on your report. If that's the case, just be patient.
If its an older card, then you should contact the lender and ask if they report to all three bureaus. Not all creditors do. Some of them only report to one or two of the three credit bureaus. So, i'd start there and determine if that's where the breakdown is. You can also contact Transunion and make an inquiry, but they don't really have anything to dispute if the creditor isn't reporting to them.
It was a great move to get a secured card....in the long run.
The short term impact is a new "hard inquiry" + a newborn credit account (0 months age of history).
That new card, will work against your average age of any other credit you might already have for a while. But just be patient, it will turn around and begin working for you in time.
I have a similar issue, but its actually Transunion that is the culprit. Not Credit Karma.
I noticed it on this site, then went to Transunion and checked the actual credit report. Low and behold, TU was reporting my AMEX twice...but with two different sets of information. One was a balance from two months ago and the other was a current balance.
This hurt my utilization ratio score, as that particular card was the one that I carry the highest balance on right now.
I've disputed it with Transunion, so we'll see.
Its most likley because those accounts changed your age of credit history and your utilization ratio.
If it was a credit card or line of credit that you paid off and closed...you just self inflicted the damage to your score. The Age of credit history averages the age of your open accounts. If you closed an old account...you hurt your age average.
If it was a credit card you closed, the credit limit on that card has now been removed from your ratio. Current debt divided by Current Credit limt gives you the percentage that makes up your utilization rate.
You don't want to pull up that kind of info onto your credit report. Hospitals don't typically report to the bureaus...so that's not going to help your thin file. If this gets into your credit report, its going to likely be because they turned your account over to collections. That's the wrong way to make your file not thin.
Contact the hospitals you owe and work out a payment plan with them. Don't let that end up in collections, it will haunt you.
Build your credit history in other ways. Perhaps start with a secured credit line from your bank or credit union...or get on your parent or spouse's credit card as an authorized user. Maybe a personal loan. There are a number of ways to build your credit history.
That bankruptcy should be off your report by now, so the average lender won't even know it ever happened.
However, you're talking about trying to do business with one of the companies that you...well...pretty much screwed out of money. They have your old information in their systems. Good chance they will never do business with you again. Can't say I blame them. Put yourself in their shoes. Bad investment on their part.
Best move for you is to forget about AMEX and pursue a totally different card from a company you've never done business with before. there are plenty of options out there. Move on from AMEX.