lilkimmi2

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Member Since: October 2010

About Me: Linkedin link: www.linkedin.com/pub/kim-mann/3/42a/230/

Most Helpful Contribution

Need advice on a very past due collection debt.

Feb 19, 2014
Helpful to 6 out of 6 people

I would wait until July first. If it falls off your credit report then, you're home free.

If you settle, it will update your credit report as "Settlement Accepted", with the current date, and I believe (someone please correct me if I'm wrong) that the 7 year clock starts over when that date is updated.

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is it a good idea to transfer all your credit cards over to another card

May 29, 2015
Helpful to 6 out of 6 people

Will you be maxing out the card when you transfer your balances? If not, then go for it. But here are a few tips:

- Make sure the card you're transferring the balances to has a lower interest rate than the cards you're transferring from

- Check with the creditor on the new card to see if there are any 0% interest specials on balance transfers. Some offer 0% for a year.

Transferring all your balances to one card does have its benefits:

- It's nice to see $0 balance on so many cards!

- You only have to make payments to one creditor

- It can save you $$ if you're transferring the balances to a lower interest card

If you ARE going to max out your card with the balances transfer, OR you if don't have any 0% interest specials on balance transfers going on, I highly recommend applying for a low-interest personal consolidation loan instead. I went through lending club (just google them) and am very happy I did. They were actually recommended for me on CreditKarma. The loan had a MUCH lower interest rate than my credit cards. My credit card interest rates were roughly 13.99% - 18.99%. I transfered one credit card balance to a card with a 12-month 0% interest promo. Then I got a consolidation loan for 7%, paid off the rest of the cards, and am now 2 months away from being 100% debt free.

Benefits of applying for a consolidation loan:

- Lower payments

- Pay debt faster

- Gives you another "type" of credit (revolving vs installment) which helps your score

- lowers your debt to credit ratio, which helps your score

Downsides of applying for a consolidation loan:

- Hard inquiry on your credit report, which hurts your score temporarily

- Average age of your credit goes down, which has a slight negative impact on your score

But in all honesty, the positives and negatives to your score are a bit of a wash - it's totally worth it in my opinion.

Need advice on a very past due collection debt.

Feb 19, 2014
Helpful to 6 out of 6 people

I would wait until July first. If it falls off your credit report then, you're home free.

If you settle, it will update your credit report as "Settlement Accepted", with the current date, and I believe (someone please correct me if I'm wrong) that the 7 year clock starts over when that date is updated.

How do I raise my credit score!

Jan 08, 2014
Helpful to 6 out of 6 people

It will hurt your score for 2 reasons:

1. The average age of your accounts will go down. The longer your accounts are open, the better your score will be.

2. Your debt to credit ratio will go up. Let's say you have 4 credit cards.

Card A has a $5,000 limit with a $1,000 balance

Card B has a $5,000 limit with a $2,000 balance

Card C has a $5,000 limit with a $0 balance

Card D has a $5,000 limit with a $0 balance.

Debt to Limit ratio = $3,000 / $20,000 or 15% ratio

If you cancel card C and D, your new Debt to Limit ratio = $3,000 / $10,000 or 30% ratio

One piece of your score is your debt to credit limit ratio, and the lower that ratio, the better your score.

what credit card could i apply with a 523 cedit score? i really need to buid my credit

Oct 21, 2014
Helpful to 4 out of 4 people

You likely won't get approved for any credit with that score. You'll have to use secure credit to get that score up. I suggest getting a secured credit card and a secured loan from a bank of your choice. That way you will have 2 different types of open credit (revolving and installment).

To secure a card or a loan, you have to put money into it - kinda like collateral. For example, if you open a secured card for $500, you need to put that $500 up against the card. Then use the card like you normally would, and make payments on your purchases. After a certain amount of time of good payment history, your score will start to rise. At some point your score will be high enough for that card to become unsecured. You'll get your $500  back and the card will be a normal credit card.

Don't apply for more credit than you need, or more than you can afford. That's how you get into trouble. :)

quick way to gain 10 points -- what to do with CCs?

Sep 19, 2014
Helpful to 3 out of 3 people

I suggest keeping the 2 cards with zero balances open. If you close them, your credit to balance ratio will go WAY up and your score will drop. You may also lose points with the average age of your accounts by closing a couple of them if they're old accounts. 

The best way to raise your score is to pay down those balances. It really hurts your score when your cards are close to maxed out.

If you apply for more credit it will hurt your score in the short term and help your score in the long term. It will place a hard inquiry on your credit report, which causes you to lose points. Your average age of accounts will also go down which hurts your score. However, your debt to balance ratio will go down, which will help your score.

So the fastest way to get 10 credit score points?

- Pay down those balances

- Keep your zero balanace cards open

- Hold off on opening any new credit right now

is it a good idea to transfer all your credit cards over to another card

May 29, 2015
Helpful to 2 out of 2 people

Will you be maxing out the card when you transfer your balances? If not, then go for it. But here are a few tips:

- Make sure the card you're transferring the balances to has a lower interest rate than the cards you're transferring from

- Check with the creditor on the new card to see if there are any 0% interest specials on balance transfers. Some offer 0% for a year.

Transferring all your balances to one card does have its benefits:

- It's nice to see $0 balance on so many cards!

- You only have to make payments to one creditor

- It can save you $$ if you're transferring the balances to a lower interest card

If you ARE going to max out your card with the balances transfer, OR you if don't have any 0% interest specials on balance transfers going on, I highly recommend applying for a low-interest personal consolidation loan instead. I went through lending club and am very happy I did. They were actually recommended for me on CreditKarma. The loan had a MUCH lower interest rate than my credit cards. My credit card interest rates were roughly 13.99% - 18.99%. I transfered one credit card balance to a card with a 12-month 0% interest promo. Then I got a consolidation loan for 7%, paid off the rest of the cards, and am now 2 months away from being 100% debt free.

Benefits of applying for a consolidation loan:

- Lower payments

- Pay debt faster

- Gives you another "type" of credit (revolving vs installment) which helps your score

- lowers your debt to credit ratio, which helps your score

Downsides of applying for a consolidation loan:

- Hard inquiry on your credit report, which hurts your score temporarily

- Average age of your credit goes down, which has a slight negative impact on your score

But in all honesty, the positives and negatives to your score are a bit of a wash - it's totally worth it in my opinion.

Private Student Loan Default

Feb 24, 2014
Helpful to 2 out of 2 people

You would need to contact your lender for repayment options. Every lender is different on how their rehabilitation works. Getting the default off your credit report will help.

Too much open credit

Feb 24, 2014
Helpful to 2 out of 2 people

If you close lines of credit, then your debt to credit ratio will increase, which may lower your score.

Pay Off Three Small CC's vs Pay Off One Large CC? Which will increase my score?

Feb 20, 2014
Helpful to 2 out of 2 people

My suggestion is to pay off 2 of them, pay down one of them to about 50% then pay down the big one. Having maxed cards really hurts your score, so the fewer maxed cards you have, the better. Then when you can, pay off the 3rd small one. Then work on the big one.

How do I remove a derogatory mark?

Dec 24, 2013
Helpful to 2 out of 2 people

Even if the debt is settled or paid, it remains on your report for 7 years.

I settled a bunch of my accounts back in 2003-04, and had to wait it out until they fell off my report.

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