I have about $9000 in debt. In the last year I had to make alot of my payments late because money was tight, so my credit rating plummeted. I have a lump sum of $16000 coming in a month & will pay off my balances. Which option will improve my credit score the best - 1) Pay them all off in one flailing swoop 2) Take 4-6 months to make payments consistently to pay them off+
2006-10-26 06:22:22 · 15 answers · asked by Gabrielle 6 in Business & Finance ➔ Credit
Pay them all off at once. It will reduce your debt to income ratio. You will also see on your credit report that this account was paid - that is the main thing the creditor cares about.
2006-10-26 06:25:17 · answer #1 · answered by Janice L 2 · 0⤊ 0⤋
If you are 21 and employed 12/18 month. put the $1000 in a saving account and convert it into a secure credit card from your bank or credit union. Just make sure they report to the credit bureau monthly. Use it for small items and pay the balance the following month. In 12 months, you'll have a fair score (620/659 and in 24 a good score 660/749.
2016-05-21 22:30:57 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Pay off the ones with high interest, then take no less than 6 months to pay off the other ones. If you do not have good financial discipline, then pay all of them off. Whichever one you choose to do, make sure to close some accounts so you do not easily fall in debt again
2006-10-26 06:27:10 · answer #3 · answered by jasonheavilin 3 · 0⤊ 0⤋
Your second idea is best. It shows that you have a bit more of a consistence on payments. Banks like to see that more then things being paid off right away. It will show that you know how to budget.
2006-10-26 11:25:24 · answer #4 · answered by cargrl 3 · 0⤊ 0⤋
I would consult with credit counselor. I doubt if I'd pay them off in one lump sum.
You really need professional advise.
Otherwise, you may end up in the same situation again.
No money, and re-charging.
Good luck
2006-10-26 06:31:54 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Credit bureaus ONLY look at if you are "current/paid as agrees" each month. If you have 0 payment due, its the same thing as making your minimum payment.
Pay them off and be done with them-- cut them up-- but dont close them. Keeping them open and with 0 balances WILL help out your score.
2006-10-26 06:29:11 · answer #6 · answered by Anonymous · 0⤊ 1⤋
at this point the debtors want it paid, so I say pay it all off now because whether or not your credit score improves what if something happens so you dont have that money anymore. That will preventing it from becoming even worse.
2006-10-26 06:26:11 · answer #7 · answered by Rae 4 · 0⤊ 0⤋
6 to 12 monthes that will help a lot, althought you will be paying interest,
you could pay in full and then use the cards as cash and pay in full each month, this means living in your means seriously or your credit will just get stomped again.
2006-10-26 06:25:55 · answer #8 · answered by Anonymous · 2⤊ 0⤋
1)
2006-10-26 06:25:32 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Pay them all off. Then call and decrease your credit limit on all of them! This will help your score a lot.
2006-10-26 09:08:25 · answer #10 · answered by katybeth212001 3 · 0⤊ 2⤋