Thread: Building your Credit Score

I've paid my credit cards off every month since my first starter card when I was 17. I'm 25. Never carried a balance once.

I've always thought its a great habit to get into.

-Markus-

Originally Posted by tubby

Fast forward to the last 6-12 months, that $12,000 has grown to $35,000 with interest, despite closing every account. ....What happened? My purchases on credit exceeded my ability to pay the balance off every month. If you slip up, you will be screwed. Trust me. I'm living it. I've probably got the lowest credit score on this forum.

Brutal, you might consider declaring bankruptcy to lose the debt. 35k in credit card debt is unsustainable unless you can pay it off in a month.

Originally Posted by BullsFTW

Brutal, you might consider declaring bankruptcy to lose the debt. 35k in credit card debt is unsustainable unless you can pay it off in a month.

I'm not a "I'm broke as hell and can't pay shit" kind of guy, I'm a "I'm broke as hell and have to find a way to repay my debt" kind of guy. I was so broke I couldn't afford to file for bankruptcy. Last 4 months I've been with a new business venture that has brought in enough money to pay off 2 CCs. Four more to go.

But the bottom line is what you preached: sound fiscal management. Build credit by paying the debt (completely) monthly shows you are financially competent and that financial competence is what changes your score for the better. Business is about getting paid.

Tubby, I know about the business you started and congratulate you -- but to be honest, paying off those credit cards, unless you're paying them in full, your money on minimum interest payments is going down the tubes.. These guys play this game with you, your credit is already screwed. Your best bet would be to build up enough cash, then make a deal with them. Basically tell them 50% or nothing... They'll take it.

- Do NOT give your SSN to anyone, ever, for any reason, unless it's a bank or a place you're applying for credit. Your doctor/dentist/etc do NOT need your SSN even if they ask for it.

In regards to that, I do disagree that dentists and doctors do not need your SSN. I am a dentist and we need the SSN for most patients, as your insurance company will utilize your SSN for processing claims. If your insurance uses a non-SSN subscriber ID number then this is different. Like I said, we have very few insurance companies that have non-SSN ID subscriber numbers. If you want to bill your own insurance and pay the doctor/dentist cash then you do not need to give us your SSN.

Originally Posted by kunal

In regards to that, I do disagree that dentists and doctors do not need your SSN. I am a dentist and we need the SSN for most patients, as your insurance company will utilize your SSN for processing claims. If your insurance uses a non-SSN subscriber ID number then this is different. Like I said, we have very few insurance companies that have non-SSN ID subscriber numbers. If you want to bill your own insurance and pay the doctor/dentist cash then you do not need to give us your SSN.

I would never give you my SSN if you were my dentist. If that meant me finding a new dentist I'd do it in a second. No offense..

Originally Posted by BullsFTW

I would never give you my SSN if you were my dentist. If that meant me finding a new dentist I'd do it in a second. No offense..

No offense taken... I would gladly work without taking your SSN, but like I stated it would be nearly impossible to bill your insurance company as well. This could probably be arranged with the insurance company by giving you another identification number. I've never had to research if an insurance company would provide another number if the subscriber asked, but I'm sure it could be done. Again if you don't have insurance it doesn't matter either.

Originally Posted by BullsFTW

Tubby, I know about the business you started and congratulate you -- but to be honest, paying off those credit cards, unless you're paying them in full, your money on minimum interest payments is going down the tubes.. These guys play this game with you, your credit is already screwed. Your best bet would be to build up enough cash, then make a deal with them. Basically tell them 50% or nothing... They'll take it.

The two CCs I paid off were lump sums. First one was only $1,500 so I didn't deal on that, just paid it. The other was a bit steeper. I got them to settle for a wire transfer of 35% of the balance owed and got it in writing they wouldn't send me a 1099-C for the remainder, which they've upheld.

Funniest thing out of this ordeal is as low as my credit score is, it's actually leverage against them. You can't go much lower than my score and when you're close to that low, WTF are you going to do to "hurt" me even more? Report me to the credit bureaus?

Anyone know how canceling a secured credit card (used to build credit score by reporting to all 3 bureaus) will affect a credit score?

Originally Posted by E46_Project

Anyone know how canceling a secured credit card (used to build credit score by reporting to all 3 bureaus) will affect a credit score?

bump