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Behind on payments and credit Score advice - The Bills.com Blog
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Behind on payments and credit Score advice
Question: If I missed 3 monthly payments and my FICO score drops from 680 to 490. How long will it take before my score gets fair once more if I start to make my payments once more. 7 credit cards all maxed out.
Answer: Credit scoring depends on too many variables to give you a specific time frame in which your credit score will rebound. But I can giveyou some tips, and number one would be to get out of your debts!
There are a few of factors that figure into credit scoring that you should take into consideration when developing a plan to rebuild your credit score, such as your debt load and your payment history. Even before you missed these payments, the fact that your seven credit cards were maxed-out was likely putting downward pressure on your score. Having too much debt in relation to your total available credit is bad for your credit score, so try to pay these balances down.
Try to cut your expenses and apply any extra cash to make increase the monthly payment to your highest interest card, while continuing to make the
minimums on the others. Once you have paid off the highest interest card, move on to the next highest interest card. This strategy will reduce your debt to available credit, and should have a positive influence on your credit score. It will also help you reestablish positive payment history, another important influence on your credit score. Since your debt to available credit ratio is high, it was probably your good payment history that was propping up your score. So when you missed payments and damaged your positive payment history, your score dropped precipitously. Once you have paid down your accounts and have started to reestablish your positive payments history, you should start
to see your credit score rebound. Read more about credit, credit scoring, and ways to improve your credit at http://www.bills.com/credit/
Also, although you asked about credit score improvement, if you want to get a free consultation on how to get out of your debts for the lowest cost and in the shortest amount of time, Bills.com makes it easy for you to apply for qualified providers of debt help, by following this link:
https://www.bills.com/debthelp/debt/
I hope this information helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by Ruben Rodriguez on Saturday 22nd March 2008 09:18
would you advice to contact your credit card bank to see if they would work on lowing interst rate to pay off bills. I am currently maxed out on my cards and loan. I can only pay min payment due, because the store card are at high interst of 21%, If they would lower I could pay more to the balance
2. Posted by Bill on Monday 24th March 2008 08:32
You will be surprised at what you can get when you ask; the problem is not many people do. You have all the right to talk to your creditor to give you some relief. If you have had a good payment history, I see no reason why they should not help you in your difficult times.