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Advice on How to Recover From Credit Card Default

How do I recover from a default credit card? Should I just pay and hope for the best?

How do I recover from a default credit card? Should I just pay and hope for the best?

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Bill's Answer
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Yes, in case of a default, you should try and pay the past due amount as soon as possible. There is nothing you can do in the short term to recover your credit, but to make sure that you do not default again. However, as time passes and you keep up a good payment history, you should begin to see your credit rating improve. Also, if you have any other accounts appearing on your credit report as current, such as a car payment, other credit card, etc., these trade lines should exert a positive influence on your overall credit profile. You should also remember that as time passes, the negative impact of these old accounts on your credit rating will become less and less. Unless you are planning to make a large purchase, such as a home or vehicle, in the near future, this particular credit card default should not cause you many problems. For more information about credit, credit scoring, and credit reports, I encourage you to visit the Bills.com Credit Resources page.

Very quickly, if you want a free debt consultation with one of Bill's approved debt help partners, click here: Debt Relief Savings Quote

Generally speaking, I encourage consumers to carefully review their credit reports from each of the three major credit reporting bureaus–Equifax, Experian, and TransUnion–at least once per year to make sure that all of the information appearing on the reports is accurate. You can obtain free copies of your credit reports once every twelve months by visiting www.annualcreditreport.com. Credit reports are notoriously inaccurate, and close scrutiny is required on your part to make sure that your credit report is current and accurate. The Federal Trade Commission offers a free guide to disputing items on your credit report, available at www.ftc.gov, which may help you in cleaning up your credit reports.

I hope that the information I have provided helps you Find. Learn. Save.

Best,

Bill

www.bills.com/

3.8
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(5 Votes)

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2 Comments

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  • BA
    May, 2009
    Bill
    There is no quick fix for this. The defaults will show on your credit for a long time. The best you can do is to pay off any outstanding balances that you have, which might help you boost your credit rating to an extent. Other than that, you need to continue paying all your bills on time, and given time, your credit will go up.
    0 Votes

  • 35x35
    May, 2009
    kim
    I am sort of in the same boat. I defaulted on my student loans and did a recovery program that showed 1 year of non payment on my credit history. I am in good standing now with all my current bills, however this haunts me and my credit score is 590. I have lots of available income when a lender looks at my debt to income ratio, however my fico score is soooo terrible, I can't help my husband now, who has credit card debt and is being slaughtered in this economy with lowering the available balances and raising interest rates... he can't add me to his cards. what do i do?
    0 Votes

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