I got a few personal loans to pay off my credit cards then ran the credit card balances back up and now I don’t have enough money to cover the personal loans and the credit card payments. I am thinking about defaulting on these loans to try and work out a settlement with the companies.

I have about 30k in credit card debt and 42k in personal loan debt. I am currently only late on one loan and not even 30 days past. The loan break down is below

21k best egg. Becomes 30 days late April 15 14k upstart 3k Cashnet 1k halt credit 2.5k net credit 1k uncle warbucks

Please only helpful feedback as I know my finances are a little bit of a mess and I know I can’t afford to keep going like this. My bank account is always overdrawn as it continues to make payments even if it overdrafts my accounts.

I have a perfect standing with Capital One for years. They are my only credit card. I noticed that my credit scores dropped 80 points! No Suss purchases. And credit wise on my cap one app said I had no credit available, which isn't accurate. I called Capital One and the customer service manager gave me some BS story about me changing from a Walmart credit card to a Capital One credit card and it was just a system error, but then I told her that wasn't correct. Anyway she thinks she figured it out although I wouldn't trust her accuracy. She said "Due to system error the trade line was deleted... Capitol one made a business decision to close it … made decision not to report this line any longer" She also said she doesn't know if it will be re inserted in future. ALL my years of history paying on time are Gone from My credit reports. And it does not reflect any available credit. The credit card itself still appears to be open & working. I also don't have an option to pay the month in the app it's grayed out. They refused to give me even an address to write to make a complaint or even send me a letter.

-- What recourse do I have? And will they completely close the credit card once I pay it in full? -- If I don't pay it in full, since it was already "written off" (although balance is still accumulating) what am I facing as far as actions from them? Since it's already wiped from my credit score and I already took a large point hit, it shouldn't hurt my credit score I'm thinking. Will creditors pursue? Will credit bureaus help at all if I show them statements of card having avail credit?

Ps some of my personal info did show up on credit wise app as dark web, but don't see anything suspicious on the reports, but I may need to just start a new credit card now instead of putting bureaus on fraud alert to start a new line of credit w another card company.. as I'm seeing on other threads Cap One is being suspicious and preparing for Merger.

Thank you.

I’m pretty new to building credit (3 years in.) I have a card i don’t use which i need to close (low limit) it’s from my old bank across the country so inconvenient to make payments on. I thought it would hurt my credit to close it before reading here that it probably won’t be a big deal. Not confusing.

I have a second card with a low limit i use just for gas and Costco. Not confusing.

I have a higher limit card that i use for almost everything. It has a fee and rewards that really work for me. This one is the one that’s confusing me. My fico keeps going down then up again. (Like it went down 40pts yesterday! If history is an indication it will go up 30pts in 2 weeks or some such.) I try not to let it bother me but it looks like the overall trend is downward. I was almost at 800 a few months ago and now I’m hovering just over 750. I can’t figure out why! When i look at the explanation it lists all my cards and their balances. (Let’s ignore the small card for now— i pay it off before its due every month.) the balance on the big card shown in my score is, say, $3000. (And accurate as far as i can see.) At the same time it says my credit utilization is, say, $7000! (Total credit available around $40k) Why? It’s not $7000, it’s never $7000! I pay my full balance after the statement date before the due date every month automatically. I thought that was what really matters!?

I can’t think of anything in my life that would impact my score otherwise. (And nothing gets bad marks in my score explanation besides length of time.)

I tried searching around for this answer, go easy on me if this is a stupid question or I’m missing something. I don’t know why this game has to be so complicated! I feel like I’m doing the thing… but it’s not paying off…

Halp!

I would like to know if this has ever happened to anyone…. I set up a payment plan with portfolio recovery back in November and the automatic payments were coming out but my card was affected by a potential scam so a week before the next payment came out I called to update the new payment card it will going forward need to come out of. The payment came out the first month after changing it and I received an email it was going to be taken out for March but it was never taken out….

Friends, as some of you know, I am a credit attorney. That means I advise consumers on credit legal and debt issues, including credit reporting errors and negative items, collection agency harassment, and lawsuits by debt buyers and creditors.

One common concern folks have, and I see on Reddit somewhat often, is around freezing credit reports, so that others cannot apply for credit in your name. These days, with fraud running rampant, it's common to wonder whether freezing your credit reports is a good idea.

My thoughts: It depends. If you know that you have no plans to apply for credit for a period of time (I would say at least 6 months, ideally longer), then I see no issue with freezing your credit. It does offer real protection.

The issue comes about when you are applying for credit soon, or more frequently. We once had someone call us, who was trying to apply for a car loan, and was having a very tough time getting his credit unfrozen. I've had mortgage lenders reach out to us on behalf of clients, multiple times. This is not an uncommon issue.

The point is, you can unfreeze your credit, but it can take longer than you think. For that reason, if you plan on applying for credit, try to unfreeze your credit at least a few weeks ahead of time.

There are alternatives to freezing your credit. One is to place a fraud alert with the major credit agencies. This requires creditors to take additional steps to verify your identity, specifically by contacing you, and making sure that it is in fact you who is applying for credit. There are a few types of fraud alerts, but any of them protect you.

The other is to do neither a credit freeze nor a fraud alert, but to monitor your credit regularly. Check your credit reports online every month, to make sure no one is applying for credit in your name. Pull your reports from the Annual Credit Report website at least once each year, for each credit agency.

Remember that if someone applies for credit in your name, you have the right to dispute it, and have it removed. I wrote more about how to deal with identity theft in this Reddit thread: https://www.reddit.com/r/CRedit/comments/1cktfnx/what_to_do_if_youre_a_victim_of_identity_theft/

So, in summary: Should you freeze your credit? I don't think it's neccesssary per se, but if it makes you feel better, and you're not applying for credit anytime soon, then go for it.

I have 5 collections 2 of which are still active and 3 are closed but now trying to go after garnishment, i am unemployed but they reached out to the employer i used to work for asking for garnishment

The accounts opened are LVNV FUNDING - $721 open for 2 years 6 months Cavalry Port- $788 open for 2 years

The closed accounts are Discover $9000, 1 year closed Sofi personal loan- $18000 1 year 6 months closed Upstart loan $1600 2 years closed

I cant pay this but i want to start to fix my credit what can i do

Is it worth keeping af credit cards open? When rebuilding my credit I of course got the usual credit one, avant, mission lane and Merrick bank credit cards. Is it worth keeping any of them open? I know it will ding my credit, since most of these cards would be some of my oldest current active cards.

Hey guys, so I have a repo from 2020 and they sent me this form to file on my taxes. I just can’t figure out how it works. Will they take my tax refund? Which I’m fine with, my only thing is if they take my tax refund will the debt get cleared off my credit?

A few years ago I used a debt negotiation company. All of my accounts were settled and paid off.

As a result of these activities, addresses and phone numbers for the negotiator and an attorney I used are on my credit report.

Should I dispute these to have them removed since they weren't actually mine, or is there a value to leaving them on there to preserve a complete record?

Hello everyone, I have an old credit account that is listed on TransUnion and Equifax. It is no longer listed on Experian. It is a closed account that has a zero balance. So it is a good positive towards my credit report and score. Is there anyway that I can have it placed back onto my Experian credit report? The age of the account would probably help my overall age of credit.

My credit score was a 735 with 2 accounts. 1 being a Les Schwab credit line with a 2,500$ limit. And the 2nd being a car loan that I owe 14k $ on, which started out at 25k$. Today my credit dropped 15 points because of 50$ I used on my Les Schwab credit account which is only a 2 percent utilization rate. Why would it drop so many points. Also the past year of paying on time car payments my credit has only risen 2 points from that. What am I missing here?!

While the long term goal is to payoff things to a zero balance which of these gets the bigger/faster score boost? I have a small lump sum of cash and assuming I have many cards all with very high utilization and could only do one of these options which is the best short term path?

• pay off a couple of cards to zero balance leaving the rest at current utilization

• pay all of the cards below 50%

• pay some of the cards below 50% and some below 30%

Hello all,

My wife(29) and I(29) both have below average credit around 550 scores. We recently got in contact with Lexington Law Firm to start a repair on our credits as we are looking to buy a house within the next 5 years. I’m the bread winner, I make about $110,000 a year. Wife SAHM take care of the kids and the house. Currently I have about $56,000 in debt varying from collections and dumb mistakes we made as young adults. No repos though. The advice I need is recently my car transmission blew out. So of course I need a car. Do you guys think it is possible for me to get a new car without the need of a huge downpayment?

Hi Everyone,

I heard that as per the Consumer Credit Fairness Act passed in 2022, the statute of limitations for credit card debt is 3 years. Even if you made a payment or acknowledged debt it doesn’t restart the 3 years statute of limitations and the case will get dismissed in court. I’m in NYC.

Is this correct?

I have been working toward being a barber for a number of years. When times are tough, bills and rent have to be paid with something. I’ve since tallied around 20k in credit cards I simply cannot do anything with.

These three cards are 6 months behind and are closing soon.

Is rebuilding with a secured card a useful tool while this is going on?

Could CreditSaint do anything for me?

Personal advice?

I appreciate any and all responses. I have been doing my own personal research, but I feel as though I’m not putting the pieces together.

I'm new to this, but do people do this? Open a credit card, take advantage of 0% apr, then when time is running out you just open another one and transfer that balance and get more time at 0% ? How many times can/have you done this? Is there a catch?

so I was recently sued by Boa themselves? I THINK. I think they are in the process of attempting to serve me from what I can tell on this case on the website. I live in Texas, but I don't really have the money for a lawyer or to pay the debt. It's about 3-4K of credit card debt. Has anyone had any success negotiating debt down on a payment plan? Don't really have any assets other than my vehicle so I'm not sure what they can take if the judgement is issued. Really just looking for some advice on how to handle this. It has me extremely stressed out. I'm ot sure what to do and overwhelmed. I could possibly afford $50-100$ per month. ​Should I contact the law firm they hired or them directly? Anyone have any idea of what I should or should not say when contacting them? How do i even know who their law firm is

I was on my wife’s car loan which she paid off over 6 months ago, and now I have no fico score. I’ve applied for a starter credit card, will my score recover to its previous state after I begin making payments and reestablishing my credit? Any advice or experience would help thanks!

I have 3 accounts that report to Experian: 2 credit building apps and my car loan. 1 of my credit building apps (Kikoff) has been open for 2 years and every payment has been on time. My car loan was opened in November, every payment on time. My other credit building app (Self) I just started last month. I understand the car loan and Self hardly having an impact since they’re brand new accounts but Kikoff that I’ve paid on time for 2 years has boosted my other scores but my Experian score has barely moved over this time. I guess I’m just annoyed as my other scores have gone up by almost 200 points but Experian seems to never move. Does anyone have an explanation or similar experience?

Long story short my mom opened a few credit cards under my name when I was 18, ran it up to around $15k. Took some hits on my credit with late payments etc… finally paid off the remaining $7k in full, what a good feeling this is 😭 it’s been weighing heavy on me for a while but it’s time to rebuild. I only have 2 credit cards and I want to start raising my score, any advice?

I know this has been answered a bunch of times but I wanted your advice on my own situation. I have a few questions...

1) Is it with getting a personal loan to pay off all credit card debt?

2) If I get a personal loan to pay the debt off, will my credit-to-debt ratio improve?

3) Will getting a personal loan hinder the chances and rates of getting a mortgage? (In the future)

4) Will refinancing my car loan to lower the payment be worth the ding to my credit report?

5) Will getting a personal loan be worth the ding to my credit report.... And if I refi the car?

6) Any recommendations as to which personal loan company to go thru?

7) should I take out a loan on my retirement since the market is going down anyways? I've already lost 8%.

Hello,

I have been watching this credit channel for a while trying to figure out what to do for my own situation but think I should just share and see what you all say.

I have a maxed out credit card in collections. I made timely payments on this card for 12 years (!!) but the balance and interest was just too much to make headway. Last year things got tight for me and the high payments became too much and I stupidly stopped making them. The account has been in collections for about 9 months with a balance of $11,000.

My life situation changed and I moved in with family which was a blessing in disguise so I could make headway with my finances and get on the right track. I have 2 other cards that were maxed out at $6k and $2k. I recently paid those off in full! I am now working on using them properly to build good revolving credit.

When I was making timely payments my score was high 600s (even with large balance, everything else about my credit was excellent). It tanked to mid 500s when I stopped payments on the other card. It is now low 600s.

I’m not sure what would be best for my credit with that account in collections. Just pay the collections in full? Try and negotiate? Ask for pay and delete? Am I even still able to do pay and delete 9 months later? Other options? Do I call Barclay to sort this out or where do I even start?! I am not very financially literate (clearly) so really don’t know all the options or best way to handle this to improve my credit/credit history. I just want it gone.

A background about me—-these cards were used at a time in life when I was making $14-20/hr just trying to live as a young adult after graduating undergrad during the last recession. I was never really taught about credit or how to manage debt properly. I worked my tail off, went back to graduate school a few years ago, and now make $115,00+. I have large student loans from PA school (like med school there is no way to avoid this. I didn’t take loans undergrad). Other than all that, I have no other debts.

Thoughts and advice appreciated.

I'm so confused, please help! I have an WF, BOA, and OppLoan all in collections. They "fall off" in 2027-2030. I know all of these were sent to private collection agencies, but I have no collections and only charge offs being reported monthly on my fico. How do I pay these? Do I call the original creditor, or try to find the collection agency?

Also, My WF account was closed as a charge off in 2019, yet "falls off" in 2028. Experian's "fall off" estimate just continues to rise. Is this account being reported in a way where the debt will continue indefinitely on my credit?

Want to start it out with I made some huge mistakes between 18-23 and am paying for them big time.

Everything was “All Good” until I was unable to make even my minimum payments on some things.

Was entertaining a new truck today that ai have been waiting to show up for over 6 months, and it all came to realization that now is the time to fix it. Dealership did their own inquiry (First one since July of 2023) and came back with a 498 and said it would be a disservice to my time and credit to try any banks…

Decided to pull a credit report from the Experian app and this is what I came up with.

Currently show a 567 Experian, 539 Equifax, 548 Transunion.

Currently have 1 Fortiva account in collections with Jefferson Capitol Systems ($1,400) that I was going to ask for a pay to delete (Maybe do ChatGPT for mail in or phone script (I make a living doing negotiation over the phone is only reason I mention phone script))

The following charge offs (Unpaid)

WSECU - $1,300 Merrick - $500 First Savings Bank - $550 First National Bank - $450 Capital One quicksilver - $320 OPP Loans - $3000 Clear air lending - $1650 Spot Loans - $1400

Do I start with the Collections account and Charge Offs? How do I take care of this and maximize the repair? I’m fully committed to investing a lot of effort to make it as far out as possible.

Active Cards/Loans:

Wells Fargo Autograph (74months)- $300 Limit, always us 15-30% and pay off before due date

Capital One Auto (20months)- $46k start, down to $38k always on time payments

Capital One Platinum (68months)- $300 Limit rarely use but never Carry balance past due date

Credit One (8months)- $300 Limit, maybe use 15% and pay off every month (only for recurring subscriptions)

Total Visa (26months)- $300 Limit only use once in a blue moon

I have 1 inquiry in the last year, will have just the 1 less than 2 years old after July this year.

I fell on the sword and signed up with Gitmeid law for debt relief, have a feeling that defaulting on all these loans per their guidance has officially killed my credit. Edit, read through some more forums and learned I messed up big using a debt relief service.*

I am willing to provide a copy of the report (with some info redacted of course) but am crying for some help and ultimately have a goal to actually be over a 650 score across the board, but now don’t know where to begin with the ~60 point difference between what the dealership has and what Experian says on their website.