credit cards?
if i have about $5800 on my credit cards right now, and i'll be able to pay it off in about 4-5 months, is my credit basically shot? how bad does this look?
Public Comments
- Stop using credit. Seriously, just stop using it. Listen to Dave Ramsey.
- If you pay your bills on time it won't be shot. Credit ratings are based on several things - debt to limit ratio and payment history. If you have a higher limit versus how much you owe the better. It shows a lower ratio of debt owed. If for example, your credit limit on the cards totals $6000 you are essentially maxed out and that would be reflected in a lower credit score. Always pay your credit bills on time including rent and utilities.
- It does not really matter how much you owe. The important thing is not to max out your credit cards and pay on time. Other factors that affect your credit score are: the number of credit accounts you have, the percentage of available credit used and the length of your credit history. I would recommend that before stressing over your credit history and credit score you run your credit report and see what it looks like. You can get one free credit report a year from each credit bureau. Just go to annualcreditreport.com. You cannot see your credit score for free there, but when you order your credit report they will offer you to buy it for a small fee. Or you can sign up for one of those credit monitoring systems that give you access to your credit score. Most of them give you a free trial for 30 days. So if you cancel before that it won't cost you a penny. Hope this helps.
- if you can pay $5800 off in 4 - 5 months your credit will be good, provided you haven't or don't miss any payments. that's what ruins your credit.
- Another vote here for Dave Ramsey. go to daveramsey.com and listen to his radio show or watch him on Fox Business News Network. He has lots of great advice on money and debt. Some people say his ideas are radical. 250 yrs ago people said that our founding fathers where radicals. I'd say hes in good company! Debt Free is the way to be!
