Posted on January 29, 2010 at 1:07 pm Hello Everyone So last year, I really messed up with my credit cards as I got diagnosed with an illness and lost my job missing several payments from February 2009 to July 2009. I have 3 credits with Visa (3 different banks). Unfortunately, they all had their credit limit revoked to 0 some time between May to July 2009. They are closed and I would need to reapply. The balance on them is approximately $800 each (so total of $2400ish). The interest is around 19% on each. My situation improved slightly in july/august, so for the last 6-7 months. I was paying above the minimum each month (around $30-$35/month). I would like to improve my credit rating. I was wondering if someone could please tell me what the best strategy would be. 1) Should I keep paying above minimum to change my "bad" credit history to good? 2) Should I reduce 1, 2 or 3 cards to below 30%-50% of the balance, than keep making above minimum payments? 3) Should I pay in full 1, 2, or 3 cards and reapply for new ones to build credit? 4) Any suggestions Appreciated. If someone could please advise me what the best thing/strategy would be do to approve my credit rating, it would be greatly appreciated.

Posted on February 1, 2010 at 4:34 am It's good that your situation has somewhat improved ... but how long do you think that's going to last? What's the possibility of missing payments again at some point in the near future?I get that your goal is to improve your credit score ... seeing that it's unhealthy ... or "bad" ... and I think all of your suggestions are good, but what do you think of changing the goal to getting rid of the debt instead? Start a new.

Posted on February 1, 2010 at 4:43 am But Oracle the balance is not enough to settle the consumer's debt ... is that what you're getting at?

Posted on February 1, 2010 at 4:56 am Why not try credit counseling? It's free - but expect that they'd offer you their Debt Management Plan. It's a program that negotiates your interest rates with your creditors so you could get at your principle much quicker.

Posted on February 1, 2010 at 4:57 am I agree with Stan, that way you can manage your monthly payment, stay current ... because your monthly payment is only around $25/mo.There's just this one small thing ... most creditors don't like working with credit counseling agencies...

Posted on February 1, 2010 at 5:04 am 3) Should I pay in full 1, 2, or 3 cards and reapply for new ones to build credit?..or you can do a balance transfer.

Posted on February 2, 2010 at 10:22 pm Hi Guys,Thank you so much for all the replies!I actually have the money to pay off all 3 of my credit cards.  But, once that is done I will no longer have a chance to fix my "bad" history with these credit cards (because the credit limit is revoked and I am required to reapply for new cards).  I have also made 7 consecutive payments on time for all these three cards, but prior to that I have a bad history with all three.So, do you guys think its best to pay all 3 cards in full and apply for new credit cards or too keep paying some money off to to fix this "bad" history.Thank so much!

Posted on February 3, 2010 at 2:19 am Keep the oldest card and apply for new ones to improve the bolded segments of your credit score:<p>-35% Payment History- 30% Amount Owed-15% Length of Credit History-10% New Credit-10% Types of Credit Used

Posted on February 3, 2010 at 10:56 am Hi Lonely,Thank you so much for your response it was really helpful!!!So, the thing is if I keep the oldest card (only 3 years old), it will always have a credit limit of 0 and I will never be able to use it.  How long should I keep this card?  Will the fact that it is a credit card with its credit limit revoked affect my credit rating?Thanks so much!