AboutDavid Expertise I can help answer questions on how to raise credit scores. I can educate you on all areas of credit scoring. My specialty is helping people recover from Bankruptcy and low credit scores quickly.
Experience I own a credit repair company and have helped hundreds of my clients raise their scores to purchase homes, cars and qualify for other loans.
Education/Credentials My background is in Financial planning.
Question I have 2 credit cards , one with a 5,000 limit and one with a 15,000 limit. I always paid on time and had no problem . I came into hard times and maxed out both cards and then missed a couple of payments. Both credit cards have raised their interest rate to 27 percent. But now I am making money again. The credit card companies contacted me and said if I close the accounts they will lower the rate and give me 5 years to pay it off. I do not want to do it. I just want to catch up with what I owe. And keep the cards. what do I do. Close the accounts or catch up with my payment and hope in 6 months they will lower back down my interest rate.
Answer Sam,
Just keep in mind this while deciding. 30% of your score is based on how much you owe on credit cards. The more you owe the worse. Paying them down without closing the accounts is best in the longrun. Also, your score suffers when closing accounts.
You can help a little by doing some credit repair. you can learn about that at www.financialscoringsolutions.com
