You're also entitled to a free credit report if you've been turned down for credit because of something on your credit report, if you're currently receiving government assistance, if you're unemployed and planning to look for a job soon, or if you think you've been a victim of credit card fraud or identity theft. Some states even have laws that let you get an additional free credit report each year. All these free credit reports should be ordered directly through the credit bureaus.

If the debt is due to drop off of your report in the next several months because it is almost seven years old, consider waiting until then to pay it, as it will have no affect on your score once it disappear. If the debt shows as written off but will still show on your credit report for longer than a few months, collect all of the funds together to completely pay it off before making contact with the lender. That way, you will potentially re-activate the debt but will also show payment in full, which will minimize the damage to your score.
I do not agree with the secured card info you've provided.  They are great tools when used correctly.  You can find one with no/small annual fee.  The interest rate won't come into play if you pay your balance in full each month.  Even if you don't pay in full, the interest on a very low balance is a non-factor.  Alomst any credit union will allow you to open an account with as little as $5 and secured card with $300/500.  My card is $500 and I never charge more than $150(30%).  It takes will power to not max it out.  You don;t want to fall back into old habits (if that is what got you into this situation in the first place).
Isolating your financial needs on different credit-card accounts will help you get the best possible terms on every transaction that you make. For example, you could get the best cash-back credit card for everyday expenses, the best travel rewards card for airfare and hotel reservations, and the best balance-transfer card for reducing the cost of your existing debt.

I was laid off for 2 years 5 years ago. We walked away from our house 3-1/2 years because we couldn’t afford to live in it. I’ve had steady employment for the past 3 years. But we’ve built up 45,000 in credit card debt. My credit score is currently 625. I have no problem paying pack the full amount I owe to the credit card companies but I would like to consolidate them. What can I do? My parents transferred a house they owned into my name and it’s paid off. Can I use that as collateral?


It may not make sense but that is the way it’s factored into your credit score, which is the end result here. Cutting up the card to avoid using it may help if it’s a temptation. The scores are comprised of debt to income ratio, but also credit worthiness and longevity, among many other things. If you have $100k in open to buy credit, and only $5k in debt, that helps your score. Also, it shows that lenders have extended this amount of credit to you. i.e. Creditworthiness. Additionally, your score factors in length of credit. They want to see how long you’ve kept that credit, expecting a good relationship with the lender and you’ve shown responsibility. Old schoolers used to close the accts and be done with it. This is the new way of the credit score. It is an education in itself.
The best way to consolidate debt varies by individual, depending on your financial circumstances and preferences. For some, the best way to consolidate debt may be paying off smaller balances first and then adding those payments to the bigger bills until those are paid off. Others might consider transferring balances to one credit card or getting a consolidation loan. However, consolidating balances to one credit card or using a loan can be risky because, if you need to borrow additional money, it may be tempting to use one of the accounts with a zero balance. Then the debt grows, and you can find yourself in financial trouble quickly.
I have 5 CC’s, combined debt of $13,000. The utilization of these CC’s are over 30%. My overall utilization is around 45%. One card is at 70% because it was used for medical bills ($5000). This has been on deferred interest for the past 6 months and this offer is due to expire in August, which will give me a lot of extra interest charges. I need to do something to move the $5k off the credit card and am wondering how a debt consolidation loan would impact my score. I can’t balance transfer anything. Would it be better to just put $5000 on a loan? The other problem I have is that I also need to get a car loan ($6k) in August. I’m concerned about too many things hitting my report but I don’t really have a choice. Recently, one of my CC companies reduced my CL but after a conversation, they reinstated it. I’m anxious to clean up my report. My score is in low 700s. What should I do?
If you are considering using a debt relief or debt consolidation company, arm yourself with information. For a fee, they negotiate with your creditors on your behalf, resulting in lower balances or interest rates. Legitimate debt relief companies will obtain a written agreement from each one of your creditors, detailing the terms of the agreement, your obligations, and what will be reported to the credit bureaus. In some cases, if your balances are lowered the creditor might report bad debt or a charge-off, which will negatively impact your credit history and score. Also keep in mind that debt relief companies generally charge higher interest rates than your bank or mortgage lender, particularly if you have less than stellar credit. So you might not save much in the long run, especially once you factor in fees. It’s up to you to do the math.
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With that being said, I went to apply for a personal loan to be added to my 5,500 loan for $3,500 to pay off the CC debt and eliminate the high interest rate payments (saving me over $100 a month), but was declined due to increase of debt. So I guess my question is, how is someone to pay off other debts if credit unions are judging your debt off a mortgage payment? My debt to income has not changed since the original loan and I have a “fair” credit score according to a credit simulator. I just purchased a home which wiped out my savings, so what is my best option here?
Some of your creditors and lenders might report only to one of the credit bureaus. And, since credit bureaus don’t typically share information, it’s possible to have different information on each of your reports. Ordering all three reports will give you a complete view of your credit history and let you repair your credit at all three bureaus instead of just one. 
You've probably seen advertisements for credit repair on television or heard them on the radio. Maybe even seen credit repair signs on the side of the road. You don't have to hire a professional to fix your credit. The truth is, there is nothing a credit repair company can do to improve your credit that you can’t do for yourself. Save some money and the hassle of finding a reputable company and repair your credit yourself. The next steps will show you how.

I've racked up a good bit of credit card debt, and while I'm slowly paying it down, it's a pain wrangling multiple bills with different interest rates. My credit union is offering debt consolidation loans with a lower rate than any of my cards—should I take that, use it to pay off all of my cards, and only have one, low-interest bill to pay every month?


I was laid off for 2 years 5 years ago. We walked away from our house 3-1/2 years because we couldn’t afford to live in it. I’ve had steady employment for the past 3 years. But we’ve built up 45,000 in credit card debt. My credit score is currently 625. I have no problem paying pack the full amount I owe to the credit card companies but I would like to consolidate them. What can I do? My parents transferred a house they owned into my name and it’s paid off. Can I use that as collateral?
While this might seem like an obvious debt-repayment strategy, Cavalieri – and many personal finance experts – suggest that you set up your payments with your bank or debit card, so that anything you owe is automatically paid every month. "Automation is key. Setting up payments to go automatically will help keep things humming and ensure you do not miss any payments," Cavalieri says. That way, not only will you start filling the debt hole, you'll avoid late fees and you'll improve your credit score, which may allow you to refinance some debt for better interest rates.
One of the sneaky-quick ways to increase your score is to add yourself as an authorized user on someone else’s. According to FICO, 35% of your score is based on your history of on-time payments, so when you become an authorized user on a friend or family member’s credit card, car loan, or installment loan, etc. you automatically “assume” the same positive history of payments on your credit report. Viola! Your score will go up as well. You do need to make sure the lender registers your social security number and will start reporting the change, and it can take 30 days to reflect on your own credit report (unless you do a Rapid Rescore—see below). But becoming an authorized user is a fantastic way to benefit from a great payment history that’s not even yours.

You've probably seen advertisements for credit repair on television or heard them on the radio. Maybe even seen credit repair signs on the side of the road. You don't have to hire a professional to fix your credit. The truth is, there is nothing a credit repair company can do to improve your credit that you can’t do for yourself. Save some money and the hassle of finding a reputable company and repair your credit yourself. The next steps will show you how.
Next, pay the balances due on any collection or charged-off accounts. Paying what you owe will not immediately cause a significant improvement in your credit score, but anyone considering granting you a loan or new credit will want to see that you did pay what you owed, even if it was late. Lastly, pay down balances on your open credit card accounts to between 30 and 50 percent of your credit limit. Even better, pay them off in full, and pay them in full each month thereafter. Low balances relative to your limit will add points to your score.

If you are unable to get a credit card, consider applying for a secured credit card instead. You need to provide a deposit, and you will be given a credit limit that is tied to your deposit amount. A secured credit card is reported to the credit bureau and can help you build your credit score. You can shop for the best secured cards at sites like MagnifyMoney and NerdWallet.
Thank you. I thought my scores were better than they are and I contacted a mortgage lender who said my scores were much lower than I thought. He said to pay off all negative open accounts. Most are medical bills. He also said that even with a car loan and a secured card and Fingerhut it is not enough trade lines. He suggested I open another secured card. Use one for gas and the other for fun/groceries. He said charge no more than 30% on each only if there is the money present to pay it off when I get home that day. If so, pay all but $5 immediately. He said that plus the debt should help within a few months to raise my score in addition to keeping the existing items current. My husband has a tax lien so I promptly made arrangements for that and have applied for and was approved for a second secured card as well. I just have to wait until payday to fund it and then will work to pay off these debts and build my score. Hoping for some big results in six months.
While it’s not a requirement to file, it should be noted that there is a second financial planning course that must be taken before a filer makes their last payment on the Chapter 13 plan. This course prepares the filer for financial success after the bankruptcy is final, which helps reduce the likelihood that they’ll need to rely on bankruptcy again in the future.
Once you complete a plan to repay your debt, you should also complete a thorough review of your credit report. Creditor should automatically inform the credit bureaus that your account is paid or current. However, mistakes and errors happen frequently, particularly following a period of financial hardship. That means it’s up to you to make sure your credit report is up to date and that old errors aren’t hanging around.
A personal loan is for a set period of time; three to five years is common. It's important to understand that your monthly payments will be a fixed amount. That's a bit different than a credit card balance, where you can vary your payments month-to-month as long as you hit the minimum amount due. And a credit card does not have a fixed payback period.
The Walmart® Credit Card offers a three-tiered cashback program to benefit avid Walmart shoppers. You receive 3% cash back on Walmart.com purchases (including purchases made on the Walmart app), 2% back on fuel purchases made at Walmart or Murphy USA (excluding Murphy Express) gas stations and 1% at Walmart & anywhere your card is accepted. Your cash back will be issued monthly as a statement credit for all earnings during that period. Note: This card can only be used at Walmart Stores, Walmart Supercenters, Neighborhood Markets, Walmart.com, Walmart and Murphy USA Gas Stations and Sam’s Clubs.

The Bank of America® Travel Rewards Credit Card for Students allows you to earn unlimited 1.5 points for every $1 you spend on all purchases everywhere, every time and no expiration on points. This is a simple flat-rate card that doesn’t require activation or paying on time to earn the full amount of points per dollar, like the other two cards mentioned above. If you plan to do a semester abroad or often travel outside the U.S., this card is a good choice since there is no foreign transaction fee. Students with a Bank of America® checking or savings account can experience the most benefits with this card since you receive a 10% customer points bonus when points are redeemed into a Bank of America® checking or savings account. And, Preferred Rewards clients can increase that bonus 25%-75%.Read our roundup of the best student credit cards.
The Amex EveryDay® Credit Card from American Express includes an extended intro period now at an intro 0% for 15 Months on balance transfers and purchases (14.74%-25.74% Variable APR after the promo period ends) and a $0 balance transfer fee. (For transfers requested within 60 days of account opening.) This offer is in direct competition with other $0 intro balance transfer fee cards like Chase Slate®.
The Target REDcard™ Credit Card offers great perks that are sure to please frequent Target shoppers. You receive 5% off every eligible transaction made at Target and Target.com. The discount automatically comes off your purchase — no redemption needed. Other benefits include free shipping on most items, early access to sales and exclusive extras like special items, offers, and 10% off coupon as a gift on your REDcard anniversary each year.* Recently, cardholders received early access to Black Friday deals. Reminder: This card can only be used at Target and on Target.com.
Following the 2007-2008 implosion of the housing market, banks saw mortgage borrowers defaulting at higher rates than ever before. In addition to higher mortgage default rates, the market downturn led to higher default rates across all types of consumer loans. To maintain profitability banks began tightening lending practices. More stringent lending standards made it tough for anyone with poor credit to get a loan at a reasonable rate. Although banks have loosened lending somewhat in the last two years, people with subprime credit will continue to struggle to get loans. In June 2017, banks rejected 81.4% of all credit applications from people with Equifax Risk Scores below 680. By contrast, banks rejected 9.11% of credit applications from those with credit scores above 760.22
"Unlike a credit card exchange, where you swipe your card and get it back, you actually give away your cash when you spend it," says Joshua Schumm, a financial coach who owns Kansas Financial Coaching in Hutchinson, Kansas. Using cash "creates a loss-type feeling in your mind and makes you less likely to make impulse purchases." Schumm says that until he and his wife began using cash at the grocery store, they often missed their budget goal. "Now, with cash, we can't overspend it," he says.
In most cases, the 0% APR interest rate is a limited-time promotion, according to the Consumer Financial Protection Bureau. If the rate rises, your monthly payment could also increase. The CFPB also notes that the company can raise your rate if you’re more than 60 days late on a payment. Additionally, you may have to pay a balance transfer fee, and if you also use the card to make purchases, the new charges may be subject to interest unless there’s also an introductory 0% APR for purchases.
Credit reports record your payment habits on all type of bills and credit extended, not just credit cards. And sometimes these items show up on one bureau's report, but not another's. Old, unpaid gym dues that only appear on one report could be affecting your score without you even realizing it. If you rent a house or apartment, some credit agencies count the history of those payments in their credit score calculations (assuming the landlord reports it to them). For example, credit rating giant Experian began including positive rental payment histories in its credit score ratings in 2010. TransUnion also figures positive rental payments into its credit calculations (look for it under “tradeline expense” on your credit report.)
Transitioning from a secured to an unsecured credit card: The transition from an unsecured card to a secured card is fairly simple for the cards mentioned below, with many conducting periodic reviews of your account to evaluate if you can move to an unsecured card. And, when you’re transitioned to an unsecured card, you’ll receive your security deposit back. Another way to be refunded the deposit is by paying off any balances and closing the card — though we don’t recommend closing the account since that jeopardizes your credit score.
The third factor that is utilized to calculate credit score is your history of credit. This category is catered towards how long each line of credit has been opened. For example, how long have your credit cards been active? How long go did you open a car loan? The longer a loan or credit line has been active, the better your history of credit will be. Now, this category is relatively easy to control. All you need to do is keep quality active lines of credit open. In other articles on our website, we discuss what could happen if you decide to close a matured credit line.
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Consolidating credit cards and leveraging low balance transfer offers has the potential to increase your credit score. But to accomplish this, it’s important to follow a few pointers. For example, for the general population, 30 percent of the FICO® Credit Score is determined by “credit utilization,” which is the amount of credit actually being used.1
We all have bills to pay, so why not leverage your payments to work for you? Making credit card payments ahead of schedule will reduce the accrued interest and your debt-to-income ratio. Staying ahead of the curve on rent and utilities will help strengthen your credit score as well. If you have a financial calendar, move your payments up by seven days—it could make all the difference.
The most important factor when it comes to one’s credit score is their credit payment history. What this means is, are you making on-time payments, have you ever missed a payment, and are you delinquent on any payments? Putting these numbers into practice, one missed payment can impact over 35% of your entire credit score. On our website, we discuss how, in some circumstances, this can be detrimental, leading to up to 100-point credit score drops.
Additionally, the security deposit you used to obtain the card is used if you were to default on your payment. However, this is not the case if the balance in which you have defaulted happens to be higher than the security deposit amount. Using the security deposit means that even if you default, the card will be paid because it is secured by your funds and you will not have the account end up in collections due to nonpayment.
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