Posted on: 18th Mar, 2013 03:14 am
Hello everyone… I lost my job in November. During that time I had 2 30 day late payments on credit cards, 1 60 day late (installment), and a car loan that is reporting current, never have been 30 days late. I feel like all hope is lost. How long will it take me to recover from this? How long will this play into my score and affect credit giving decisions? My score has plummeted to the mid 500s. If I pay everything down to zero and sit on that for 6months, will that make a difference? Should I get a secured card?
Hi Guest,
It will take quite some time to recover from your situation. Any negative item will remain in your credit report for 7 years. It will be a good option to pay off the deficient balance and then look out for secured cards to improve your scores.
Thanks,
Jerry
It will take quite some time to recover from your situation. Any negative item will remain in your credit report for 7 years. It will be a good option to pay off the deficient balance and then look out for secured cards to improve your scores.
Thanks,
Jerry
Yes, you can definitely recover from the current situation and become financial stable, provided you follow the above given advice. In addition to that, reduce you unnecessary costs and stop using all your credit cards right now. Instead, use cash for everything you buy and keep just one credit card to be used in case of emergency.
You will require quite some time to come out from such situation. However, the negative item will stay for at least 7 years on your credit report. Try to pay off the deficient balance as early as possible and then apply for secured credit cards.
It will take some time for you to recover from your financial setback but you will recover. If you pay everything down to zero, of course that would make a difference because you will be freed of debt; however, the negative transactions will still stay on your report for seven years. At this point, I would suggest that you stop using your credit cards. Do not cancel them as they might decrease your credit score further, so just stop using them and apply for a secured credit card instead. Just make sure that you also pay your secured credit cardlance on time and in full so your credit score can slowly improve.