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If I'm unemployed, how do I deal with credit card debt?

Derick Vogel
Credit Advisor & Owner, Credit Absolute
Derick Vogel is a Credit Expert and CEO of Credit Absolute, a credit counseling and educational company based in Scottsdale, Arizona. Derick has over 10 years of financial experience and specializes in consulting mortgages, loans, specializes in business credit, debt collections, financial budgeting, and student loan debt relief. He is a member of the National Association of Credit Services Organizations (NASCO) and is an Arizona Association of Mortgage Professional. He holds credit certificates from Dispute Suite in credit repair best practices and in Credit Repair Organizations Act (CROA) competency.

Derick Vogel

Credit Advisor & Owner, Credit Absolute

Expert Answer

First, you should call all your creditors and let them know you lost your job and are looking for help in deferring the payments. Ask them to send confirmation in email if possible. By deferring the payment, you'll be allowed to find a job without having to make the minimum payments and getting any penalties and 30 day late payments. However, if you can make the minimum payment, then at least do that.

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Question

How can I get a new credit card if I have bad credit?

Derick Vogel
Credit Advisor & Owner, Credit Absolute
Derick Vogel is a Credit Expert and CEO of Credit Absolute, a credit counseling and educational company based in Scottsdale, Arizona. Derick has over 10 years of financial experience and specializes in consulting mortgages, loans, specializes in business credit, debt collections, financial budgeting, and student loan debt relief. He is a member of the National Association of Credit Services Organizations (NASCO) and is an Arizona Association of Mortgage Professional. He holds credit certificates from Dispute Suite in credit repair best practices and in Credit Repair Organizations Act (CROA) competency.

Derick Vogel

Credit Advisor & Owner, Credit Absolute

Expert Answer

There are secured credit cards for people who are trying to rebuild their credit. A credit counselor can also help you figure out which credit cards are worth applying for.

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How much of my credit limit should I be using?

Derick Vogel
Credit Advisor & Owner, Credit Absolute
Derick Vogel is a Credit Expert and CEO of Credit Absolute, a credit counseling and educational company based in Scottsdale, Arizona. Derick has over 10 years of financial experience and specializes in consulting mortgages, loans, specializes in business credit, debt collections, financial budgeting, and student loan debt relief. He is a member of the National Association of Credit Services Organizations (NASCO) and is an Arizona Association of Mortgage Professional. He holds credit certificates from Dispute Suite in credit repair best practices and in Credit Repair Organizations Act (CROA) competency.

Derick Vogel

Credit Advisor & Owner, Credit Absolute

Expert Answer

Keep your credit card balances under 10% of the credit limit. For example, if your credit card has a $1000 credit limit, you would want to keep the balance under $100. Some people suggest keeping your balance under 30%, but studies show that people with a high credit score only use around 7% of their credit limit.

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How much does one 30-day late payment affect your credit score?

Derick Vogel
Credit Advisor & Owner, Credit Absolute
Derick Vogel is a Credit Expert and CEO of Credit Absolute, a credit counseling and educational company based in Scottsdale, Arizona. Derick has over 10 years of financial experience and specializes in consulting mortgages, loans, specializes in business credit, debt collections, financial budgeting, and student loan debt relief. He is a member of the National Association of Credit Services Organizations (NASCO) and is an Arizona Association of Mortgage Professional. He holds credit certificates from Dispute Suite in credit repair best practices and in Credit Repair Organizations Act (CROA) competency.

Derick Vogel

Credit Advisor & Owner, Credit Absolute

Expert Answer

Making a single late payment could lower your credit score by as much as 50 to 100 points.

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