What if you stop paying credit cards?
After many calls and letters - very stressful! - they will eventually send your account to collections (which is a way of suing you). My grandparents have over $100,000 in credit card debt and the phone calls start at 8am and don't stop until 5pm. Also, you will not be able to apply for a loan or anything that requires a credit check because it will all be there on the report. No lender would make a deal with someone who has delinquent accounts. But the collection companies will always offer to settle the debt if you pay as little as 30 cents on the dollar (the average settlement is about 50%). If you take them up on this offer your debt will be reported as settled with a zero balance. Your credit score will begin to improve after all your debts are settled, and within a couple years you will again be getting credit cards offers in the mail on almost a daily basis.
I would think not paying on your credit cards would have the biggest effect on them. I'm sure they would care less if you pay on your house as long as you pay them. If you have to make a choice between the two then pay on your house. Your house is more important to your survival and is secured by your mortgage but your credit card is most likely an unsecured loan.
Please do not stop paying your credit cards back. You will destroy your credit score. It is devastating what can happen if you stop paying off your cards. Credit card companies will harass & chase you for up to 7 years if you do not pay. They can make your life hell. This happened to me. I did my best to always pay off everything I owed. I worked 3 jobs at one time to…
If you stop paying on a collection account that no longer shows on your credit report can the collection company report the unpaid balance to the credit bureaus?
Closing the account will remove the temptation to spend up the cards again but, closing the account can actually lower your credit score. You ought to take that question and your private credit information to a credit counselor for a better answer. By the way, CONGRATULATIONS on paying off the cards!
things that raise your credit score are , having major cards open more than 3 years, and showing good standing with that creditor. you dont have to use a credit card to show good standing. yes paying off high dept will raise your score. and having too much on your cards even if you pay on time will lower it.
Is it better if I pay of my credit card balaces with money I have on side or if I just keep paying payments that I can each month?
The answer to that question depends on how much interest you are paying and how much interest you are earning. Almost all of the time it is better to pay off your credit cards. But if you need to borrow for something else then you need to compare interest rates before you pay offthe credit cards. But ALMOST ALL of the time paying off a credit card and not paying interest is in your best…
You cannot pay the credit rating bureaus to improve your credit rating. However, you can improve your credit rating by paying your bills on time and paying the full required amount due. If you can put additional money towards paying off your mortgage, car loan, student loan or credit cards, this can also help.
Generally, paying by credit card does not impact your other credit cards UNLESS you are attempting to get a credit line increase on one of those other credit cards. When you use your credit card, depending on the timing of credit bureau reporting, your credit score may be negatively impacted if you have a balance (whether paid off in full each month or not) that is equal or greater than 30% of the card's credit…