Hi Money Minder,
I recently graduated and, umm, I kinda messed up with my credit cards. My credit score is at a sad 484 now, but back in 2022, I was rocking above 800. My credit score took a hit as I started using my credit cards more. Currently, my credit card usage is at a crazy 102%, but hey, all other areas look good according to CreditKarma. I’ve landed a sweet job now and plan to chip away at my credit card debt by 15% each month. I need to find an apartment soon and I’m curious – how fast will my credit score bounce back once I start paying it off?
Catch you later,
Striving Student
Response from THE MONEY MINDER:
Hello There,
Congratulations on graduating! I understand the stress of being in credit card debt, especially seeing your credit score drop. It’s great that you have a plan in place to lower your credit card debt by 15% each month now that you’re starting a well-paying job. The good news is that making consistent payments toward your debt will have a positive impact on your credit score over time.
Since your credit card usage is currently quite high at 102%, bringing it down gradually each month will show your creditors and credit bureaus that you are actively working to reduce your debt. As you continue to make on-time payments and decrease your credit card balance, you should start to see improvements in your credit score.
When it comes to finding an apartment, some landlords may check your credit score as part of the application process. By demonstrating responsible financial behavior through paying off your credit card debt and improving your credit score, you will be in a better position to secure the apartment you want.
Remember, improving your credit score takes time and consistent effort, so be patient with yourself as you work toward your financial goals. THE MONEY MINDER wishes you all the best on your journey to financial well-being!
