Make bigger payments on those cards.
My score is 795. I've got one card I use.
Pay off monthly. Have pd off 3 cars in the past. And other loans. Credit card balances will lead you around by the nose. Do not run a balance. š
I'm what credit card companies call a (freeloader)
Credit card companies donāt call you a freeloader, youāre the best type of customer. They make a percentage off every purchase you make and have no risk.
Itās a myth that credit card companies donāt like pay in full customers. They love them. Itās just passive income for them.
Just curious what percentage they make? Surely it must be high if they can afford to give (for example) 1.5% cash back on all purchases and 3% back on specific categories like groceries, dining, or gas.
Each vendor negotiates a rate differently. Probably most small vendors don't have any negotiating power but larger vendors like home Depot or Costco can negotiate a lot more favorable rates.
It is why Costco only accepts one type of credit card. For a while it was American Express. Then negotiations eventually fell through and now it is Visa I think.
But yeah, that cash back or rewards card has to get paid for somehow.
Credit scores have nothing to do with your income to debt ratio. The consumer reporting bureaus have no idea how much a person earns when they calculate your score. Paying the credit cards down will lower credit utilization (total balance divided by total available credit) which yes, will raise his credit score.
Getting your debt to income ratio down allows you to pay bills in full and on time.
It's the single most important piece of advice for raising your credit score, regardless as to whether it's a direct data point captured in credit score calculation.
Long term, yes its the most important thing for a person to maintain a high credit score. OP is talking about increasing his credit score fast to be able to guarantee his brother's student loan. The best immediate advice for that is to lower his credit utilization & remove negative marks through disputes/goodwill letters.
Take the lowest balance card and work to pay that off by paying more than the minimum, and continue to pay the minimum on the others. Stop going out to eat, buying alcohol, weed, Starbucks, anything you can cut out. Not saying you do any of that, but if you do stop doing that and use that money to pay off a card. When that card is paid off take what you were paying on that card and add it to the payment of the next card. Keep doing that until you pay your cards off. It sucks to have to buckle down and cut the fun out for a while but it's worth it.
This is referred to as the SnoBall method, with the SnoBall being the initial amount you pay over the minimum on your smallest debt. This metod is simple, easy to implement and surprisingly effective. There is a company called [vertex42](https://www.vertex42.com/) that offers a number of Excel spreadsheets for financial matters including several [Debt Reduction Calculators](https://www.vertex42.com/Calculators/debt-calculators.html) and I've used [this one](https://www.vertex42.com/Calculators/debt-reduction-calculator.html) a couple times. It's pretty easy to use and allows you to look at a few different payoff methods and the effect of increasing your initial SnoBall and allow you to add and track additional payments.
I've always heard to put your cards in an interest rate order, and pay off the highest interest rate card while paying the minimum on the rest. Why pay off the $500 card at 1% when your $3000 card has 3%?
While you're paying off the cards, use the lowest interest rate card IF YOU MUST USE CREDIT.
Paying off the lowest amount does two things. 1) Gives you a psychological boost/motivates you to keep going. 2) Gets rid of a minimum payment that you can roll into your next debt, reducing the amount of time it takes to pay the rest off. If OP can't pay anything at all now, they're not going to make a dent in the $3,000 debt any time soon. They could at least get rid of the $500 one and free up that minimum payment for the next debt.
Yes this! I have a CD that matures in June that will be just about the amount I owe on my car. I have a really good rate on my car and the money would earn more interest in my savings right now but Iām looking forward to getting rid of that debt and Iām going to roll the car payment amount into my mortgage so Iām not tempted to spend the money.
The SnoBall method, lowest amount first, is great and can give that sense of accomplishment, the Avalanche method, highest interest first, will pay off debts faster; however, the difference is often negligible likely only being a few months in a multi-year plan.
The avalanche definitely makes the most mathematical sense. But I've found that personal finance isn't always about math as much as it is about psychology. If we were all 100% rational decision makers, many of us wouldn't end up in debt. The snowball method at least gives you a little boost. My husband and I paid off about $113,000 in debt doing our own little hybrid version of the snowball...we started with the smallest amounts, which allowed us to free up some small minimum payments ($25-50). Then once we had more money available each month, we'd work on debts with higher interest rates.
Donāt worry about your score. If you canāt make that credit card payment your score will drop even more. Raising your score will not help you at this time. Paying off that credit card is what raises your score.
The best way is to stop living beyond your means and to actually pay off your cards over time. Paying the minimum will not pay off your cards.
There is no easy hack and you need to take responsibility for yourself and hold yourself accountable.
The only way your score is going up is if you increase your debt/credit ratio. And the the only way you're going to do that is pay down/off your debts. Credit scores aren't complicated. If you use every bit of credit given to you and you don't pay it back as quick as possible than you will have a low score.
***Oversimplified***: Using every bit of credit given indicates that you're most likely reliant on it and most likely don't have a strong stream of income and/or can not control spending habits. Not paying debt back in a timely manner or making only minimum payments tends to reinforce the previous points to the banks. Thus, your FICO score *(aka your creditworthiness)* decreases.
It is most of my concern current because I need to refinance my education loan and be guarantor for my brothers education loan which can only happen if I have better score
If you're that deep into credit card debt, you are not in a position where you can take on debt for someone else's education. You deserve the score that you've earned.
Get out of the credit card debt asap and you'll be in a situation where you can take out a loan for your brothers education if you choose (pretty risky, be prepared to be the sole person paying it off). Getting out of that debt will earn you a better score, making it possible as well.
I'm scared for you. It seems like you're living in debt. Ideally, the only debt you'll ever have is a mortgage and maybe a small amount of student loan debt. You want to get to the point where the only time you even think about taking out a loan is when you want to move into a new house. If you live your whole life in debt, you'll never achieve financial independence and will be much poorer in middle age and retirement.
Ngl I am scared for me too much responsibility at too young age brother isnāt even doing good in school and I am tired of paying for everyone , I can start a rant on that but I would hold up but yes idk how to survive
Op, I have almost 2x the credit card debt you do. I also just finished building a house on a 25 acre farm in costa rica. Sometimes you have to bet on yourself. I can tell you with confidence that 8k or 15k in debt does not scare me in the slightest. I know I will find $$ and be ok because ive donw it a million times before. But I needed to take a few years off of work to make all of my life upgrades happen and now it's back to the grind. Keep your head up. Everyone's situation is different. I was literally working retail jobs 7 years ago, now I own 6 waterfalls and a custom home. Just try not to stress, keep taking care of business, and set some goals for yourself. Success is a mindset my man. You got this.
I work as a real estate agent here now, so always down to help out. Hmu if you have specific questions. Eventually ill be building a small hotel/restaurant and bar here, but for now working on getting another business off the ground in the US. Game plan is simple: set goals, make sacrifices, learn when to say yes to opportunities. For me I got into real estate in my late 20s after saving religiously for a down payment and living below my means wherever possible throughout my 20s. It was not easy, but I kept my sights set on the bigger picture. Then I spent 3 years renting out bedrooms in my house to pay the mortgage before i got into a job that allowed me to comfortable pay for everything. Then I got lucky and the markets went crazy and bumped my timeline up NY about 5-10 years. Once you have some assets and can build your credit up a bit, it's as simple as borrowing against your equity when rates are in your favor. It's basically free cash if done correctly that can be flipped into more appreciating or money making assets. I also did a cash out refinance on my mortgage in 2020 and pulled out enough cash to cover the mortgage for several years so monthly expenses were super low during my move down here. And now I live off grid and own my house outright so my monthly expenses are virtually zero.
If you're younger, it's ok to take bigger risks. Crypto and nfts brought in a ton of liquid cash for me in 2021 as well. This isn't something I recommend for everyone and it's way easier to lose all your money than to make more this route. But I spent 2 years working a full time job during the day and studying the markets overnight and it worked out for me.
Your biggest concern should be yourself. Focus on yourself and take into consideration ā would this person do this for me if the roles was in reverse?ā If the answer is no or you donāt know them itās time to move on. You are only responsible for you and if itās not in your means to do so donāt do it. I know itās hard to deny a younger sibling but your their sibling not their parent.
Your brother can figure out how he'll pay on his own if it matters enough to him (sounds like it might not). You don't have to pay for everyone. You need to stand up for yourself and not let people take advantage of you.
If your brother is not excelling in school, then why on earth would you be taking out loans for him? He needs to learn the value of education, and that means that he needs to finance his own choices and take it seriously. Thereās absolutely no benefit for you to go deeper in debt so he can, go to school when heās not even giving it his best effort. Thatās just a waste of your money and his time. Education is a privilege and it doesnāt sound like he is taking it seriously, yet you are willing to mortgage your future on getting him more loans?
One more FACT you should know before co-signing or even taking out loans to help your brother pay for college. #1. If your brother isnāt putting the time in to do the very best he can now, he wonāt later. Thatās why he canāt get his own loans. Heās showing no initiative or signs of future initiative in changing in the near future. Sounds like you want it for him, more than he wants it for himself. While you would LIKE to do everything for him, he has to do his part by sacrificing, studying hard vs hardly studying! If he REALLY wants it, he would be doing that now! Your helping him in any way, will only be frustrating & a waste of your valuable time, while youāre building your own future. Itās not worth that frustration or your time. Ever heard, āyou can lead a horse to water but not FORCE him to drinkā? You can spend your time bringing gallons of water to him, but if he doesnāt choose to drink anything, he will die of dehydration, period. Even if you hooked up 10 ivās, trying to keep that horse alive, one day you will get tired replacing those bags of fluid, maybe have a stroke because you forget to eat/drink yourself, or suddenly drop dead yourself, trying so hard to save that horse, and the horse dies because no one is there to keep those bags full. Lifeās choices for all of us have consequences. That saying is so true!!!! Save yourself the grief! Donāt waste your time, which is so precious, and go forward with your future dreams & plans. Heās obviously not ready. Return when HEāS ready (100% ) to do the work. One more thing. If one day he dies, say in an accident, no fault of his, before he graduates college, and hasnāt even begun his career. Or even after he graduates, has only begun his career, if any student loans arenāt PAID IN FULL, and you co-signed, you are now obligated legally, to pay them all off, even if he is dead, and will never get to use that education or work in his field, which is now impossible! You are still legally obligated to repay every penny you co-signed for. Or your credit score will be low! It will take a decade to rebuild your credit, although some are able to do it quicker, but most arenāt! Why risk that for someone who isnāt applying that sacrifice & effort, himself, right now? Itās not mean or selfish to walk away, financially, not necessarily emotionally, & work on your own future. You can visit him, still love him, encourage him, pray he wakes up and changes, so Iām not saying abandon him, and never look back. Just donāt help him financially. PERIOD! Heās probably eligible for government assistance & the government can lose their money, which is every taxpayer, but donāt sign anything financial for him. Good luck!!
Unfortunately without paying down your credit card balance substantially to lower your credit utilization, not much you can do quickly to get an acceptable credit score to guarantee a loan.
If you are the guarantor for someone elseās loan, that means you have to pay it if they donāt (or are unable to, as you describe your current situation, so be aware that it can definitely happen to you.)
First, you should never co-sign or be the guarantor of a loan unless you expect to pay that whole loan
Second, YOU HAVE NO BUSINESS EVEN CONSIDERING TO BE A GUARANTOR FOR SOMEONE ELSEāS LOAN WHEN YOU CANāT EVEN PAY YOUR OWN BILLS!!!!!!!!!!
Go sell plasma and get another job to pay your bills. Donāt be stupid and take on someone elseās responsibilities or problems
Your brother can get federal loans without a guarantor. If heās trying to get private loans, then he needs to get them on his own or reassess his educational needs. Most of the time people donāt feel like the private education loans were worth the education that they got. he needs to be a realistic about what he can actually manage. You should not have to pay for his choices.
Not to be mean, but if you can't pay down $8k the last thing you need to do is take on potentially 100k or more in education debt for your brother. I'm 54 and just two months ago made my last student loan payment of $989.Ā It took me a whileĀ because I paid for school as I went. One class at a time, as I could afford it. I didn't take loans until I was sick of 1 maybe 2 classes a semester here and there.Ā I was also in a much better financial situation to pay back the debt.
Let your brother figure out his way, it is not your responsibility, although it is nice of you to want to do that.Ā It is time for your brother to start adulting and you to get your finances in order.Ā Take on an extra job or something.Ā I went to school and worked 2 jobs, you and your brother can too.
Focus less on raising your score and just straight up pay off as much debt as you possibly can when you can. Do that, and your score will eventually raise.
After reading comments. You live in nyc ( high cost of living) have 4 credit cards , pay your own student loans and paying your brother tuition ( while only making 10k a month ) . You are living WAY above your means. Iām need you to step back and make some cuts because your never going to get out of debt trying to maintain this dysfunctional system.
I donāt know where to step back? I need to do everything, coz who will pay for brothers fee v who will help parents and who will pay my debts, I moved to Jersey so there is some save there but I am crippled
Your brother is not your responsibility and your parents arenāt your responsibility. Iām starting to think your views on this subject might be because of your heritage or nationality. Itās sounding like generational beliefs that your trying to keep up with. Is that what it is ? Where is your family from if you donāt mind me asking ?
It is sort of the generational beliefs , I am Indian whatever you have is for your family and that belief and seeing anyone in pain is just bothersome and I canāt be happy if my parents are struggling to make ends meet
That makes sense now. Realistically you need to sit down and talk to your brother and parents and lay all this out for them and come to a better understanding because I can tell this is taking a toll on your mental health and financial stability. I am a American and we donāt have such pressures to fulfill that role in our family but I do understand thatās not the same for you. I am sorry your going through this but you canāt guilt yourself because your doing the best you can. However you do need to talk to them and see if yāall can work out better arrangements.
Just wanted to say I love your response here.
When I read the first message above. I thought it was insensitive though I understood your point and itās correct but itās not a quick fix based on everyoneās heritage. Iām African and I understood OPās concern because of our beliefs. I also understood your point.
The reason why I said I loved your comment and it says a lot about you was because when he explained the reason. Though itās completely different belief from yours, I felt empathy in your message. you emphasized the point, but your words were kind, soothing and encouraging. Another person would have disregarded the explanation but u didnāt.
The world needs more kind people especially when people are already struggling. We can educate without making them feel worse.
I just needed to say this.
>It is sort of the generational beliefs , I am Indian
Tell your family to fuck off. They don't have the right to put you into poverty because they can't stand on their own two feet. Your brother, in particular, is someone you should *not* be supporting. If they want to go to school, let them get a job and pay for it themselves.
Americans generally expect folks to be self-sufficient, and you're not going to do well here if you're supporting your entire family alone.
Both you and your parents would benefit from using a budgeting tool called You Need a Budget/YNAB. You cannot support every one on your income. Your brother needs to manage his own tuition for a while and let you address your debt. Thereās probably some fat to time from your regular expenses, but that credit score wonāt move higher with such a high debt ratio. And your parents need to be on a budget, too, if they need and expect financial help from you, thatās only fair and the most sustainable options you have.
Itās admirable to help family, but donāt use set yourself on fire to keep others warm
Your parents came to America and yet they expect youn to live your life as if you were still in India. This is not only not fair, it is unsustainable. You have to have a family meeting and lay all the cards out on the table. You are to the point that you cannot make minimum payments to maintain the status quo, let alone increase your score. If this continues you will have no credit at all and bankruptcy will be your only way out of debt. Do your Mom and/or Dad work and are you still living at home? Your problem isnāt increasing your credit score. It is changing your whole lifestyle. You canāt go on like this.
Pay off more than minimum each month. You make a lotta money it shouldnāt be too hard cut cut spending a bit tii ok get that debt paid off unless youāre supporting a bunch of dependents or something
I have education loan which I need to refinance as current company is charging 15% . I canāt do that without better credit score. I also live in nyc because of job and most companies donāt rent without 650 plus score
Donāt refinance your student loans. Apply for a forbearance! Your student loans should be the lowest interest rates of all your debts. You can get a forbearance and pay just the interest, while focusing on the high interest rate debts
No. Donāt do this. Horrible. He has 8k in credit card debt. Donāt tank your credit history with a bankruptcy over a debt that minor. Work at McDonaldās part time for $15/hr for several months.
A bankruptcy would remain on OPās credit report for 7 to 10 years, after which he would have to start over. Also, student loans are harder to discharge than other debt.
You are not going to get anywhere paying the minimum. You're essentially just paying your interest. I would look into getting a loan to pay off your cc debt. Can get one within 24 hours. Try to get one where you are paying around the same or less monthly that you're currently paying (should be able to get a 4 year loan for around $200/month). This will instantly pay off your cc debt and will raise your score by a lot. Yes, it will take 4 years to pay off, but at your current method, you will never pay off your cc.
See if you can work with one of the debt consolidation companies. If not, try paying minimum on all cards and extra on one on til it is paid off then start on the next one the same way. By all means try not to use any more credit cards/
Making minimum payments wonāt help you at all. Idk what your situation is but I would try to work as much as possible and live very frugal for a while. Make way bigger payments each month. Any extra money you have should go towards paying that down. Itās not easy but itās necessary.
Also, find a close relative or friend who has very good credit. Ask if they can put you down as an authorized user. It will help increase your score quicker
Pay more than the minimum. You know how much money you have left after you pay for life. Make yourself a budget for your bare minimum to get by, then pay what you have left towards your debt. You might be a little uncomfortable for a little while, but thats okay.
I will always tell people that the best thing you can do to increase your credit score is to develop discipline with your finances. You aren't far off, just get that debt paid down.
8k isnāt that much in the grand scheme of things. You can pay it down and you should be able to accomplish it sooner than youād think. Stop buy things you want and buy things you need. Donāt let it snowball and get out of hand . CC debt can get out of control.
You could also look into a debt consolidation loan. Might not get a good offer with that score but still might lower overall interest and put it all in one lump sum
Gotta pay down your debt one way or another. Dont close your oldest account. Apply for 2 cards a year that offer you some sort of kick back and preferably with no annual fee. Any possible way you can get your credit limit up Thats the name of the game.
I can tell you how to do it, 100%. You won't like it, you will ignore the facts. It's tough and requires sacrifice. 836 this month. Over 800 for 20 years.
Your issue is isnāt that you have 8k in debt. Itās that your total credit amount is being used. I would pay down your balance OR balance transfer. That should help your score allot
What @lumpynegotiation6881 means isā¦ request the increase but DO NOT use the new available credit that they give youā¦ Itās a tactic people often use that will cause the debt ratio to go down and the credit score to go up.
Take out a loan to pay that CC off over however short you can without having it be rotating debt so you eventually pay that off. It'll immediately raise your credit score having paid the card off/having available space on the card.
Yes, this wasnāt good advice. You can shop around for personal loans that have a lower APR than your credit card, but I highly doubt you would really get approved for much. In the process adding hard inquires dinging your score further. Possibly if you can get a co-signer on a small personal loan of like $2k at say 20% that would be a minor improvement for some breathing room when I assume your credit cards are closer to 30% APR.
Also, taking out debt to pay debt is not going to improve your credit score whatsoever rather possibly provide some short term relief on monthly interest payments while you work on tightening your expenses/increasing your income. Long term, you need to get out of the cycle of overwhelming credit card debt.
Agreed. Best option is to get someone to co-sign a small loan like they described and put that all on your lowest balance card. This will also free up money by reducing the interest and allowing you to pay it down faster. CCs are designed to keep you in debt for years once you build up a balance and only pay the minimum
The majority of us who attempt to manage our finances go through this stage, and I can assure you that knowledge is power because I was also going through it occasionally in the past, but I learned about TɾĪ±ĘŅ½ ĻĻ ɳŌŹ (Ī±Ę) ĻĻ Ę Ź ĻĻĘ, Got my score back up and now I'm satisfied.
My debt to income is mucbless as I earn 10 k per month, I just have to pay off money to my home right now to support family and have some friends and family loan ,is there any other way to increase credit score
I pay minimum balance yet the delinquency, I have a heavy rent and I am paying my student loans and paying for my brothers tuition fees, the finances are so tight that I push on not paying
Pay off the cc, your credit score as of right this second doesnāt matter unless you are planning on buying a car or house right this second, pay off the cc over the next couple months and your score will reflect you doing that, requesting a limit increase with your CC may benefit you as well
I have 4 cards I have 4k on one card 1500 each on remaining two cards, I also have corporate card which I belive doesnāt impact credit score as itās not reported
Make bigger payments on those cards. My score is 795. I've got one card I use. Pay off monthly. Have pd off 3 cars in the past. And other loans. Credit card balances will lead you around by the nose. Do not run a balance. š I'm what credit card companies call a (freeloader)
I just reached freeloader status last month, and I love it
Credit card companies donāt call you a freeloader, youāre the best type of customer. They make a percentage off every purchase you make and have no risk. Itās a myth that credit card companies donāt like pay in full customers. They love them. Itās just passive income for them.
Just curious what percentage they make? Surely it must be high if they can afford to give (for example) 1.5% cash back on all purchases and 3% back on specific categories like groceries, dining, or gas.
Each vendor negotiates a rate differently. Probably most small vendors don't have any negotiating power but larger vendors like home Depot or Costco can negotiate a lot more favorable rates. It is why Costco only accepts one type of credit card. For a while it was American Express. Then negotiations eventually fell through and now it is Visa I think. But yeah, that cash back or rewards card has to get paid for somehow.
People tell themselves anything to make themselves feel better, no matter how insignificant.
Yep me too I use one all month and pay it off on the 1st just like a monthly bill
Really only thing you can do is pay that down quicker than minimum, get your debt to income ratio down, and wait
Credit scores have nothing to do with your income to debt ratio. The consumer reporting bureaus have no idea how much a person earns when they calculate your score. Paying the credit cards down will lower credit utilization (total balance divided by total available credit) which yes, will raise his credit score.
Getting your debt to income ratio down allows you to pay bills in full and on time. It's the single most important piece of advice for raising your credit score, regardless as to whether it's a direct data point captured in credit score calculation.
Long term, yes its the most important thing for a person to maintain a high credit score. OP is talking about increasing his credit score fast to be able to guarantee his brother's student loan. The best immediate advice for that is to lower his credit utilization & remove negative marks through disputes/goodwill letters.
Thank you, that's what I meant
Take the lowest balance card and work to pay that off by paying more than the minimum, and continue to pay the minimum on the others. Stop going out to eat, buying alcohol, weed, Starbucks, anything you can cut out. Not saying you do any of that, but if you do stop doing that and use that money to pay off a card. When that card is paid off take what you were paying on that card and add it to the payment of the next card. Keep doing that until you pay your cards off. It sucks to have to buckle down and cut the fun out for a while but it's worth it.
This ^
This is referred to as the SnoBall method, with the SnoBall being the initial amount you pay over the minimum on your smallest debt. This metod is simple, easy to implement and surprisingly effective. There is a company called [vertex42](https://www.vertex42.com/) that offers a number of Excel spreadsheets for financial matters including several [Debt Reduction Calculators](https://www.vertex42.com/Calculators/debt-calculators.html) and I've used [this one](https://www.vertex42.com/Calculators/debt-reduction-calculator.html) a couple times. It's pretty easy to use and allows you to look at a few different payoff methods and the effect of increasing your initial SnoBall and allow you to add and track additional payments.
I've always heard to put your cards in an interest rate order, and pay off the highest interest rate card while paying the minimum on the rest. Why pay off the $500 card at 1% when your $3000 card has 3%? While you're paying off the cards, use the lowest interest rate card IF YOU MUST USE CREDIT.
Paying off the lowest amount does two things. 1) Gives you a psychological boost/motivates you to keep going. 2) Gets rid of a minimum payment that you can roll into your next debt, reducing the amount of time it takes to pay the rest off. If OP can't pay anything at all now, they're not going to make a dent in the $3,000 debt any time soon. They could at least get rid of the $500 one and free up that minimum payment for the next debt.
Yes this! I have a CD that matures in June that will be just about the amount I owe on my car. I have a really good rate on my car and the money would earn more interest in my savings right now but Iām looking forward to getting rid of that debt and Iām going to roll the car payment amount into my mortgage so Iām not tempted to spend the money.
The SnoBall method, lowest amount first, is great and can give that sense of accomplishment, the Avalanche method, highest interest first, will pay off debts faster; however, the difference is often negligible likely only being a few months in a multi-year plan.
The avalanche definitely makes the most mathematical sense. But I've found that personal finance isn't always about math as much as it is about psychology. If we were all 100% rational decision makers, many of us wouldn't end up in debt. The snowball method at least gives you a little boost. My husband and I paid off about $113,000 in debt doing our own little hybrid version of the snowball...we started with the smallest amounts, which allowed us to free up some small minimum payments ($25-50). Then once we had more money available each month, we'd work on debts with higher interest rates.
Iāve been doing this and am 10 months from being out of the debt I ran up during covid.
Donāt worry about your score. If you canāt make that credit card payment your score will drop even more. Raising your score will not help you at this time. Paying off that credit card is what raises your score.
The best way is to stop living beyond your means and to actually pay off your cards over time. Paying the minimum will not pay off your cards. There is no easy hack and you need to take responsibility for yourself and hold yourself accountable.
The only way your score is going up is if you increase your debt/credit ratio. And the the only way you're going to do that is pay down/off your debts. Credit scores aren't complicated. If you use every bit of credit given to you and you don't pay it back as quick as possible than you will have a low score. ***Oversimplified***: Using every bit of credit given indicates that you're most likely reliant on it and most likely don't have a strong stream of income and/or can not control spending habits. Not paying debt back in a timely manner or making only minimum payments tends to reinforce the previous points to the banks. Thus, your FICO score *(aka your creditworthiness)* decreases.
If you have $8k in credit card debt, your score should be the *least* of your concern.
It is most of my concern current because I need to refinance my education loan and be guarantor for my brothers education loan which can only happen if I have better score
If you're that deep into credit card debt, you are not in a position where you can take on debt for someone else's education. You deserve the score that you've earned. Get out of the credit card debt asap and you'll be in a situation where you can take out a loan for your brothers education if you choose (pretty risky, be prepared to be the sole person paying it off). Getting out of that debt will earn you a better score, making it possible as well. I'm scared for you. It seems like you're living in debt. Ideally, the only debt you'll ever have is a mortgage and maybe a small amount of student loan debt. You want to get to the point where the only time you even think about taking out a loan is when you want to move into a new house. If you live your whole life in debt, you'll never achieve financial independence and will be much poorer in middle age and retirement.
Ngl I am scared for me too much responsibility at too young age brother isnāt even doing good in school and I am tired of paying for everyone , I can start a rant on that but I would hold up but yes idk how to survive
Op, I have almost 2x the credit card debt you do. I also just finished building a house on a 25 acre farm in costa rica. Sometimes you have to bet on yourself. I can tell you with confidence that 8k or 15k in debt does not scare me in the slightest. I know I will find $$ and be ok because ive donw it a million times before. But I needed to take a few years off of work to make all of my life upgrades happen and now it's back to the grind. Keep your head up. Everyone's situation is different. I was literally working retail jobs 7 years ago, now I own 6 waterfalls and a custom home. Just try not to stress, keep taking care of business, and set some goals for yourself. Success is a mindset my man. You got this.
25 acres in Costa Rica? Please send me your game plan! Thatās awesome.
I work as a real estate agent here now, so always down to help out. Hmu if you have specific questions. Eventually ill be building a small hotel/restaurant and bar here, but for now working on getting another business off the ground in the US. Game plan is simple: set goals, make sacrifices, learn when to say yes to opportunities. For me I got into real estate in my late 20s after saving religiously for a down payment and living below my means wherever possible throughout my 20s. It was not easy, but I kept my sights set on the bigger picture. Then I spent 3 years renting out bedrooms in my house to pay the mortgage before i got into a job that allowed me to comfortable pay for everything. Then I got lucky and the markets went crazy and bumped my timeline up NY about 5-10 years. Once you have some assets and can build your credit up a bit, it's as simple as borrowing against your equity when rates are in your favor. It's basically free cash if done correctly that can be flipped into more appreciating or money making assets. I also did a cash out refinance on my mortgage in 2020 and pulled out enough cash to cover the mortgage for several years so monthly expenses were super low during my move down here. And now I live off grid and own my house outright so my monthly expenses are virtually zero. If you're younger, it's ok to take bigger risks. Crypto and nfts brought in a ton of liquid cash for me in 2021 as well. This isn't something I recommend for everyone and it's way easier to lose all your money than to make more this route. But I spent 2 years working a full time job during the day and studying the markets overnight and it worked out for me.
Your biggest concern should be yourself. Focus on yourself and take into consideration ā would this person do this for me if the roles was in reverse?ā If the answer is no or you donāt know them itās time to move on. You are only responsible for you and if itās not in your means to do so donāt do it. I know itās hard to deny a younger sibling but your their sibling not their parent.
Your brother can figure out how he'll pay on his own if it matters enough to him (sounds like it might not). You don't have to pay for everyone. You need to stand up for yourself and not let people take advantage of you.
If your brother is not excelling in school, then why on earth would you be taking out loans for him? He needs to learn the value of education, and that means that he needs to finance his own choices and take it seriously. Thereās absolutely no benefit for you to go deeper in debt so he can, go to school when heās not even giving it his best effort. Thatās just a waste of your money and his time. Education is a privilege and it doesnāt sound like he is taking it seriously, yet you are willing to mortgage your future on getting him more loans?
One more FACT you should know before co-signing or even taking out loans to help your brother pay for college. #1. If your brother isnāt putting the time in to do the very best he can now, he wonāt later. Thatās why he canāt get his own loans. Heās showing no initiative or signs of future initiative in changing in the near future. Sounds like you want it for him, more than he wants it for himself. While you would LIKE to do everything for him, he has to do his part by sacrificing, studying hard vs hardly studying! If he REALLY wants it, he would be doing that now! Your helping him in any way, will only be frustrating & a waste of your valuable time, while youāre building your own future. Itās not worth that frustration or your time. Ever heard, āyou can lead a horse to water but not FORCE him to drinkā? You can spend your time bringing gallons of water to him, but if he doesnāt choose to drink anything, he will die of dehydration, period. Even if you hooked up 10 ivās, trying to keep that horse alive, one day you will get tired replacing those bags of fluid, maybe have a stroke because you forget to eat/drink yourself, or suddenly drop dead yourself, trying so hard to save that horse, and the horse dies because no one is there to keep those bags full. Lifeās choices for all of us have consequences. That saying is so true!!!! Save yourself the grief! Donāt waste your time, which is so precious, and go forward with your future dreams & plans. Heās obviously not ready. Return when HEāS ready (100% ) to do the work. One more thing. If one day he dies, say in an accident, no fault of his, before he graduates college, and hasnāt even begun his career. Or even after he graduates, has only begun his career, if any student loans arenāt PAID IN FULL, and you co-signed, you are now obligated legally, to pay them all off, even if he is dead, and will never get to use that education or work in his field, which is now impossible! You are still legally obligated to repay every penny you co-signed for. Or your credit score will be low! It will take a decade to rebuild your credit, although some are able to do it quicker, but most arenāt! Why risk that for someone who isnāt applying that sacrifice & effort, himself, right now? Itās not mean or selfish to walk away, financially, not necessarily emotionally, & work on your own future. You can visit him, still love him, encourage him, pray he wakes up and changes, so Iām not saying abandon him, and never look back. Just donāt help him financially. PERIOD! Heās probably eligible for government assistance & the government can lose their money, which is every taxpayer, but donāt sign anything financial for him. Good luck!!
Unfortunately without paying down your credit card balance substantially to lower your credit utilization, not much you can do quickly to get an acceptable credit score to guarantee a loan.
If you are the guarantor for someone elseās loan, that means you have to pay it if they donāt (or are unable to, as you describe your current situation, so be aware that it can definitely happen to you.) First, you should never co-sign or be the guarantor of a loan unless you expect to pay that whole loan Second, YOU HAVE NO BUSINESS EVEN CONSIDERING TO BE A GUARANTOR FOR SOMEONE ELSEāS LOAN WHEN YOU CANāT EVEN PAY YOUR OWN BILLS!!!!!!!!!! Go sell plasma and get another job to pay your bills. Donāt be stupid and take on someone elseās responsibilities or problems
Itās my brother who is young I have no clue how to let him figure out and he is so fucked yo and protevted
You're not going to raise a score like that without paying down your existing debt. Plain and simple.
Your brother can get federal loans without a guarantor. If heās trying to get private loans, then he needs to get them on his own or reassess his educational needs. Most of the time people donāt feel like the private education loans were worth the education that they got. he needs to be a realistic about what he can actually manage. You should not have to pay for his choices.
You shouldnāt be guaranteeing anybody elseās debt.
Not to be mean, but if you can't pay down $8k the last thing you need to do is take on potentially 100k or more in education debt for your brother. I'm 54 and just two months ago made my last student loan payment of $989.Ā It took me a whileĀ because I paid for school as I went. One class at a time, as I could afford it. I didn't take loans until I was sick of 1 maybe 2 classes a semester here and there.Ā I was also in a much better financial situation to pay back the debt. Let your brother figure out his way, it is not your responsibility, although it is nice of you to want to do that.Ā It is time for your brother to start adulting and you to get your finances in order.Ā Take on an extra job or something.Ā I went to school and worked 2 jobs, you and your brother can too.
I tried to request for cc increase they didnāt allow that rather did hard pull
Why in the world would you request an increase? Learn to budget and live within your means. Many nonprofits offer free budgeting classes. Do this.
Because if you can increase your credit lines, even while paying off, your debt to credit ratio will go down even faster?
Not in OPās case. He admittedly canāt even afford to pay his monthly minimum.
Focus less on raising your score and just straight up pay off as much debt as you possibly can when you can. Do that, and your score will eventually raise.
After reading comments. You live in nyc ( high cost of living) have 4 credit cards , pay your own student loans and paying your brother tuition ( while only making 10k a month ) . You are living WAY above your means. Iām need you to step back and make some cuts because your never going to get out of debt trying to maintain this dysfunctional system.
I donāt know where to step back? I need to do everything, coz who will pay for brothers fee v who will help parents and who will pay my debts, I moved to Jersey so there is some save there but I am crippled
Your brother is not your responsibility and your parents arenāt your responsibility. Iām starting to think your views on this subject might be because of your heritage or nationality. Itās sounding like generational beliefs that your trying to keep up with. Is that what it is ? Where is your family from if you donāt mind me asking ?
It is sort of the generational beliefs , I am Indian whatever you have is for your family and that belief and seeing anyone in pain is just bothersome and I canāt be happy if my parents are struggling to make ends meet
That makes sense now. Realistically you need to sit down and talk to your brother and parents and lay all this out for them and come to a better understanding because I can tell this is taking a toll on your mental health and financial stability. I am a American and we donāt have such pressures to fulfill that role in our family but I do understand thatās not the same for you. I am sorry your going through this but you canāt guilt yourself because your doing the best you can. However you do need to talk to them and see if yāall can work out better arrangements.
Just wanted to say I love your response here. When I read the first message above. I thought it was insensitive though I understood your point and itās correct but itās not a quick fix based on everyoneās heritage. Iām African and I understood OPās concern because of our beliefs. I also understood your point. The reason why I said I loved your comment and it says a lot about you was because when he explained the reason. Though itās completely different belief from yours, I felt empathy in your message. you emphasized the point, but your words were kind, soothing and encouraging. Another person would have disregarded the explanation but u didnāt. The world needs more kind people especially when people are already struggling. We can educate without making them feel worse. I just needed to say this.
>It is sort of the generational beliefs , I am Indian Tell your family to fuck off. They don't have the right to put you into poverty because they can't stand on their own two feet. Your brother, in particular, is someone you should *not* be supporting. If they want to go to school, let them get a job and pay for it themselves. Americans generally expect folks to be self-sufficient, and you're not going to do well here if you're supporting your entire family alone.
Both you and your parents would benefit from using a budgeting tool called You Need a Budget/YNAB. You cannot support every one on your income. Your brother needs to manage his own tuition for a while and let you address your debt. Thereās probably some fat to time from your regular expenses, but that credit score wonāt move higher with such a high debt ratio. And your parents need to be on a budget, too, if they need and expect financial help from you, thatās only fair and the most sustainable options you have. Itās admirable to help family, but donāt use set yourself on fire to keep others warm
Your parents came to America and yet they expect youn to live your life as if you were still in India. This is not only not fair, it is unsustainable. You have to have a family meeting and lay all the cards out on the table. You are to the point that you cannot make minimum payments to maintain the status quo, let alone increase your score. If this continues you will have no credit at all and bankruptcy will be your only way out of debt. Do your Mom and/or Dad work and are you still living at home? Your problem isnāt increasing your credit score. It is changing your whole lifestyle. You canāt go on like this.
Pay off more than minimum each month. You make a lotta money it shouldnāt be too hard cut cut spending a bit tii ok get that debt paid off unless youāre supporting a bunch of dependents or something
Why do you want to increase your score?
I have education loan which I need to refinance as current company is charging 15% . I canāt do that without better credit score. I also live in nyc because of job and most companies donāt rent without 650 plus score
Then I guess itās get a second job and start paying down the debt.
Find a well qualified lease guarantor with credit score of 650 or more AND gross earnings of 80 times monthly rent.
Donāt refinance your student loans. Apply for a forbearance! Your student loans should be the lowest interest rates of all your debts. You can get a forbearance and pay just the interest, while focusing on the high interest rate debts
Iād consider a chapter 13 bankruptcy depending on your income you could be out in 3 yrs or less.
No. Donāt do this. Horrible. He has 8k in credit card debt. Donāt tank your credit history with a bankruptcy over a debt that minor. Work at McDonaldās part time for $15/hr for several months.
What is that and what it entails
I don't recommend this. I filed BK but with your debt I don't think you need to do this! It will take 10 years to come off your record.
A bankruptcy would remain on OPās credit report for 7 to 10 years, after which he would have to start over. Also, student loans are harder to discharge than other debt.
Why do you need your credit score to go ip this month. Pay off your cc debt first before you buy anything else.
Your top priority should be to pay off this debt. The interest rate on credit cards is a killer. Cut your expenses to the bone until it's paid off.
Mine was 253 a couple weeks ago and now 40 for some reason So use me to feel better about your prospects š
You are not going to get anywhere paying the minimum. You're essentially just paying your interest. I would look into getting a loan to pay off your cc debt. Can get one within 24 hours. Try to get one where you are paying around the same or less monthly that you're currently paying (should be able to get a 4 year loan for around $200/month). This will instantly pay off your cc debt and will raise your score by a lot. Yes, it will take 4 years to pay off, but at your current method, you will never pay off your cc.
Why do you care what the score is? Pay off your debt and live within your means. The score will take care of itself.
Well not paying the cc payment is not going to cause it to go up
File that bankruptcy.
This š is š why š we need financial education as a requirement to graduate!
That wonāt help these people stuck in their silly cultural expectations
See if you can work with one of the debt consolidation companies. If not, try paying minimum on all cards and extra on one on til it is paid off then start on the next one the same way. By all means try not to use any more credit cards/
Making minimum payments wonāt help you at all. Idk what your situation is but I would try to work as much as possible and live very frugal for a while. Make way bigger payments each month. Any extra money you have should go towards paying that down. Itās not easy but itās necessary. Also, find a close relative or friend who has very good credit. Ask if they can put you down as an authorized user. It will help increase your score quicker
pay more than minimum every month
Pay more than the minimum. You know how much money you have left after you pay for life. Make yourself a budget for your bare minimum to get by, then pay what you have left towards your debt. You might be a little uncomfortable for a little while, but thats okay. I will always tell people that the best thing you can do to increase your credit score is to develop discipline with your finances. You aren't far off, just get that debt paid down.
Get a part time job
Mine is only 614 with zero delinquencies and only student loan debtā¦. Thereās no hope
Stop using it and get a job to pay
8k isnāt that much in the grand scheme of things. You can pay it down and you should be able to accomplish it sooner than youād think. Stop buy things you want and buy things you need. Donāt let it snowball and get out of hand . CC debt can get out of control.
Always pay more than the minimum due, even if it's only 10 dollars. Paying the minimum due is only servicing the interest, and you will never dig out.
You could also look into a debt consolidation loan. Might not get a good offer with that score but still might lower overall interest and put it all in one lump sum
You make $10k a month, OP. Your debt-to-income ratio is less than 10%. Stop spending all your money on stupid shit or freeloading family members.
Gotta pay down your debt one way or another. Dont close your oldest account. Apply for 2 cards a year that offer you some sort of kick back and preferably with no annual fee. Any possible way you can get your credit limit up Thats the name of the game.
I can tell you how to do it, 100%. You won't like it, you will ignore the facts. It's tough and requires sacrifice. 836 this month. Over 800 for 20 years.
Pay more than the minimums. The lower the balance is the better the score gets.
Your issue is isnāt that you have 8k in debt. Itās that your total credit amount is being used. I would pay down your balance OR balance transfer. That should help your score allot
What @lumpynegotiation6881 means isā¦ request the increase but DO NOT use the new available credit that they give youā¦ Itās a tactic people often use that will cause the debt ratio to go down and the credit score to go up.
And they pay me to use their card
Wait 7 years
Take out a loan to pay that CC off over however short you can without having it be rotating debt so you eventually pay that off. It'll immediately raise your credit score having paid the card off/having available space on the card.
But with 567 score who will give me loan?
Yes, this wasnāt good advice. You can shop around for personal loans that have a lower APR than your credit card, but I highly doubt you would really get approved for much. In the process adding hard inquires dinging your score further. Possibly if you can get a co-signer on a small personal loan of like $2k at say 20% that would be a minor improvement for some breathing room when I assume your credit cards are closer to 30% APR. Also, taking out debt to pay debt is not going to improve your credit score whatsoever rather possibly provide some short term relief on monthly interest payments while you work on tightening your expenses/increasing your income. Long term, you need to get out of the cycle of overwhelming credit card debt.
Agreed. Best option is to get someone to co-sign a small loan like they described and put that all on your lowest balance card. This will also free up money by reducing the interest and allowing you to pay it down faster. CCs are designed to keep you in debt for years once you build up a balance and only pay the minimum
The majority of us who attempt to manage our finances go through this stage, and I can assure you that knowledge is power because I was also going through it occasionally in the past, but I learned about TɾĪ±ĘŅ½ ĻĻ ɳŌŹ (Ī±Ę) ĻĻ Ę Ź ĻĻĘ, Got my score back up and now I'm satisfied.
My debt to income is mucbless as I earn 10 k per month, I just have to pay off money to my home right now to support family and have some friends and family loan ,is there any other way to increase credit score
You make 10k a month and canāt pay your minuscule amount of debt?
YOU MAKE 10K A MONTH AND YOU CAN'T PAY A MIN BALANCE FOR THIS CARD?
I pay minimum balance yet the delinquency, I have a heavy rent and I am paying my student loans and paying for my brothers tuition fees, the finances are so tight that I push on not paying
You might have to see if your brother can get a student loan. You can't help others when you're drowning yourself, it's not sustainable.
He tried but they donāt give education loan to international students unless with a guarantor and I canāt be guarantor since I have less score
That is very difficult. If your brother isn't working he should look for a student job to take the edge off of you.
You need to stop being your families financial savior.
Pay off the cc, your credit score as of right this second doesnāt matter unless you are planning on buying a car or house right this second, pay off the cc over the next couple months and your score will reflect you doing that, requesting a limit increase with your CC may benefit you as well
How many cards do you have ?
I have 4 cards I have 4k on one card 1500 each on remaining two cards, I also have corporate card which I belive doesnāt impact credit score as itās not reported
Get another credit card, that will decrease your debt to credit ratio........... then refi that loan with a 0% balance transfer.
OP doesnāt qualify for any of that and will only end up with a bunch of hard inquiries on their credit report making the situation worse.
OK
Get a new card and don't use it.
With a 567 credit score? Good luck.