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Posted in Credit Scores
I would appreciate any help you can give me on this. I am working on improving my credit score to get a home loan. I have quite a bit of credit card debt that I am paying on. Currently, I am at 79% usage, which is down from almost 100%. I also have several old collections, including three or four from the last two years. Others are older but will still be on my report for at least three or four years. My question is where am I better investing my limtied money: paying down on credit cards or paying for the collections if they will be deleted?
I've tried to get a personal loan to pay off my credit cards because I was told a loan doesn't hurt your score as much as credit card balances. However, with my poor score, I can't even get one of those. On my own, I can only pay about $500 a month, which barely seems to do much to my score. I'm hoping to raise it enough to get a loan and pay everything off. Any advice would be very much appreciated.
1232 People Helped
Hope this helps!
Paying down the credit card loans would be a big plus. As far as the collections; try to get a settlement offer one that will remove the negative items from your credit. Try to dispute the collections first to see if there are any flaws before negotiating a settlement. Call Credit Pros "1-877-235-0324" They will offer you free advise; or do it for you. Good luck!
redguy411's response was:
3 People Helped
Similar Issue
I am in the same boat with trying to pay off credit cards. This is what I have done: I dropped my cable TV, my Wifi, my phone company, I have contacted everyone I owe and asked for a drop of % against me. Requested a small limit on mounting doctor bills and I pay them on time. I talk to my Bank often and pay when I have money available and before the due date. My use is down to 25% and I hope it continues to fall. When I need something at the store, I leave my credit cards at home and use cash only. I continue to look for a better income and I don't give up trying. I hope this helps you!
clc3's response was:
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