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 3 credit cards, Discover (6k) @15%, Chase Visa (9k)@15.65, Chase MC (8k)@10.24%. If that's not bad enough, I just received letters that the Visa will be increased to 22.24%, MC increased to 14.24%. My fico score has been over 700 for years and have never been late in 8 years and have always paid over minimum. The rate increase will take effect next month unless I opt out. They state that if I opt out, they will close the accounts. I know that if I close the 2 Chase accounts that it will ruin my score. I have had the lower interest one for many years, the higher one at chase for about 3 years. I am thinking of at least closing the higher interest one. I only make about 28k per year and live very frugally, car paid off and mortgage only $534.00 per month. With this rate increase, I dont know how Iwill ever pay these off as I will be paying hundreds per month in interest alone. I was told if I close them down that my car insurance and home insurance rates will go up but I wonder if that would be less than this exorbitant interest hike with the cards. If I do choose to close down both Chase cards and dont incur any more debt, will it take many years to get a good credit score again? I am 54 years old, sole supporter and no savings. I only have 7k in my 401k. What should I do?
Answer 15 % of your score is based on length of credit history. 30% of you score is based on utilization ratio's. These are the 2 areas that will be negatively effected. Your car and homeowners should not be effected unless you change policies. Your credit score does effect insurance policies at time of application.
