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Bad Credit Card Debt Solutions
As one would expect, the most important causes of credit success or failure will always be payment history and total debt owed. Although together these factors account for about 65 percent of your credit, there are several other aspects of your credit report that lenders look at to determine your credit-worthiness. Many of these factors are not obvious even to the most intuitive of minds. Here are 5 of the most overlooked factors that influence your credit card debt solutions.
The number of recent inquiries on your credit report. To most people this isn't self-evident, but to lenders it makes perfect sense. If you have a lot of recent inquiries from lenders who are looking to determine your credit worthiness, then chances are you may be overextended and short of cash.The proportion of your balances to their credit lines. If you're maxed out on your credit cards, then lenders may consider it a sign of one of three things:
a) you're overextended and relying on your credit to make ends meet;
b) you're addicted to credit and overuse your credit lines; or
c) both.
Closing credit card accounts. Closing an account has the effect of lowering the credit limit on your credit report. Since you no longer are charging anything to that account whatever your current balance is also happens to be the credit limit. This being the case the credit scoring companies only see that a consumer is utilizing 100 percent of the credit line, thus affecting your credit negatively per point number 2.Closing your oldest credit card account. Closing accounts affects your credit negatively, but since the impact is relatively minimal, it may be a necessary step to help get your finances under control. If you're forced to make a decision about which account to keep open (assuming they have the same interest rate and fees), you should always hang on to the oldest account. The length of your credit history is actually about 15 percent of your score, and having an account with some longevity can be a big boost.Enrolling in a debt counseling service. The only way to maintain a positive credit picture is by paying your bills on time and in full every month. Our debt settlement program offers a lower monthly payment program usually ranging from 1-4 years. Your credit score can be rebuilt once you have nothing weighing your credit down.
Bad Credit Card Debt Solutions
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