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- July 26, 2011 at 4:09 am #355893
I understand that business credit is different than personal and that at first many entrepreneurs personal credit is their business credit at first or at least the basis thereof. My question is, if you open a business is there any effect on your personal credit score? The reason for the inquiry is my personal credit score is decent about 700 but is falling because of a high debt ratio. So, because of the high debt ratio, lately no credit cards will touch me and what I want to do is transfer to an introductory rate to get out of high interest debt. I am able to pay all of my minimum balances plus 100 percent each month but I am of limited income from disability but get $ 26,000 a year for grants for Grda school each year, $ 10000 of which is government sub loans. So what is happening is I get the installments twice a year. I immediately pay down all of my cards ranging from $ 1,000 payment to $ 4000. My total debt is about $ 20,000 and most happened prior to my disability.
Nearly all of my Grad school grants and loans are going to my credit cards and by the end of a semester I am out of funds from supporting my wife and son and myself. So, I use the credit cards I originally tried to pay down at the beginning of the semester and the whole thing cycles again. What should I do, bankruptcy? I really feel a moral obligation to pay off my debt, I spent the money and that is my responsibility. The problem is that because my debt ratio is so high and I constantly teeter on the limits of my cards I get hit with crazy rates. The last one was a raise from 5.9 percent to 15 percent and 32 months later a raise to 29.9 percent from Citibank. I think that with the upcoming laws the credit card companies are trying to lock me into these high rates and since my situation is that of a stressed borrower they immediately hit my account with any raises.
That was really long winded. The 2 questions I have are will opening a business help my personal credit and can I freeze my credit card APR’s or cards because of becoming “permanently” disabled in the span of accruing interest about 2 years ago. Any advice would be really appreciated, I”m really stressed out and trying to support my family while going to grad school and on disability all the while making the maximum amount allowed to stay on disability per month, $ 900.00. I’m so bogged down in interest that I can’t make any head way on my credit cards because al of my payments go primarily to interest. Thanks.
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