Credit Tips: How to Use Credit Cards Wisely

Posted On: December 1, 2005

Author: Crysb
Posted: Tue Jun 08, 2004 9:04 pm
Post subject: How to Use Credit Cards Wisely

11/23/2002 12:57 am CDT

I recently moved home from Illinois where I racked up horrible credit card bills. I was unable to find a job for months on end and I have fallen behind on bills like you wouldn’t believe. All this at the ripe old age of 20. I have just secured a position with a very good company now, and I am on the fast track to advancement in the company. Now that I have about 1500 dollars a month coming in, I need to repair my credit.

I understand that debt consolidation is probably my best offer in regards to low to no intrest. What I want to know is what is the fastest way to repair my credit? I screwed up and now I am working constant overtime to get back on track. There are three cards that have not gone into collections yet that I can still probably catch up with…but there are other that have gone into collections and are beyond repair. Is there any way I can get a credit card or a loan that will transfer my balances and get me back to a starting point? If so…is that the best way to repair my credit?

I do have about 20,000 dollars worth of bills to take care of, and I don’t even know if it is possible to take care of them all with my credit in the situation it is. Sad thing is…before all this happened, I had worked so hard at getting amazing credit that at 19 years old I was approved for a loan for 15,000 dollars to get a car without a co-signer. Looking back…I should have done it because I probably wouldn’t have spent all the money I did trying to pay other bills with other credit cards when I was in trouble….thus doubling the trouble I was in!

Please help me. I need some advice on the best way(s) to get my credit back. I understand it’s going to take years…but what’s the fastest, best way possible?

Author: Carlb
Posted: Tue Jun 08, 2004 9:05 pm
Post subject: How to Use Credit Cards Wisely
11/23/2002 9:26 pm CDT

Crys, Well…you didn’t say how bad your situation is. Are you already defaulting on your loans? Have your credit cards been shut down? Are your loans already in collection? Do you hvae Liens on your report? Have you pulled your credit files from the 3 major credit card companies? Car loans don’t impress people very much in the world of credit. It’s considered a collateral loan, and as such, they will simply come and take your car back if you decide to stop paying on it. Some credit card companies eliminate Car Loan history altogether because of this when considering you for their card. Of course they will gladly consider BAD car-loan history AGAINST YOU, though. Yup! Twenty years old is an amazing age to be. You want the privileges of being an adult, but you don’t much care for the responsibilities. Go to your dad and have him co-sign a consolidation loan. Be prepared to live cheaply for the next 5 years as you as you not only DON’T USE ANYMORE CREDIT, you pay back a thousand dollars a month to all your cards. Make arrangements with your credit card people to pay them back without interest. Ask your dad for help with this. If he’s an @#$&! then you must do it yourself. Go to a bookstore and get 2 or 3 books on the subject. Goodluck.

Author: Monicab
Posted: Tue Jun 08, 2004 9:06 pm
Post subject: How to Use Credit Cards Wisely

11/27/2002 7:41 am CDT

Are any of your credit cards salvagable - or have the accounts been closed? If you are willing to put some work into it (and this may be difficult if you have a full time job and don’t want to spend time at work discussing your credit situation!) you can negotiate with the credit card company to get back to a better interest rate

The best way is really just the hard way - PAY THEM BACK. The problem with a debt consolidator is that then you have no flexibility. They make their money by having a guaranteed stream of revenue - in the form of your monthly payment. They don’t want you to pay it off early. The sooner you are paid off, the sooner you can rebuild your credit. You will be astonished how soon the credit card offers will start filling up your mailbox!

Reading between the lines, don’t ever be flattered into accepting credit by being considered a “good credit risk” or being offered platinum and premium cards…

Credit cards are an industry and consumers are the raw fodder of this industry. If everyone paid their full balance on time , the industry would shrivel up. They are counting on you falling behind. Think about that next time you sign up for something.