Hey, All. I recently had an account that was closed out and it has severely impacted my credit score. I’m not going to give you the usual sob story, but I’m in college, I make very little money, I don’t really spend a lot of unnecessary things but things like car insurance, gas, necessities, etc. still add up quite a bit given my limited income. Over the years I have battled to manage bills, creit cards, etc. I was once in the hole with a credit score around 500. I was able to fight my way up to a 686 at one point, last year. But recently my score dropped to 596. It hurts.
The main thing that killed my score was an old account that I had that was closed out. It was around 4 years old and I had always made timely payments on it (except for once, when I was more than 30 days late) For the last 4 months…I did not make payments. I am taking responsiblity…this is my fault. What’s sad is the balance was not even that high at all…something I could have paid (although not easily). Things were tougher for me financially this semester and I have found myself needing extra time for payments, having to save for a large auto insurance payment, etc. I have a great job lined up and will be making good money when I graduate, but right now things are extremely tough. Today I even had to take out a loan at a very high interest rate to keep up with my bills. I am going to have to pick up a lot of extra work from December through March to be able to pay that loan off quickly, since I will be paying back a ton of money if I don’t pay it down fast.
Is there anything that can be done about this closed account? It was just closed out a month ago. I really do not want this on my report. I am looking at possibly coming into ownership of a house in my family next year, but because there is still some money left to be paid on the house it is important I keep my credit up. Plus its just important period.
Thanks for reading!