If I payoff all my credit card debt how many points will it raise my credit score? IsNo revolving credit bad?

Answer 1

if you close all accounts it will lower your score, leave at least one open.

Answer 2

Well, that is the real trick. I have learned alot about credit scores in the past ten years, i will share with you what my personal experiances are. First thing, I have never recieved good credit from a credit card (such as mastercard, or visa.. ect.) the people who hold your debt (the bank the card is based from) I have had over twenty cards, and never had positive credit left. I wondered why so I called all the companys up. they told me that they do not report to the credit burueas unless the card is not paid, then they report a negitive report. The best way to get your credit brought up is bank loans, or revolving accounts with utilitie companys (such as verizon wireless, or MDU). Then the account has to be open for at least 6 months, and the point scale is based upon how long and how consistant you make your payments. If you have a credit judgment against you it probaly already decreases 40 points off your credit, and wii remain on your credit until you pay it off. I hope this helped!

Answer 3

you should pay off as much as you can.... 35% of your credit score is based on how much of your credit you use (lenders like to see less than 40%... in other words, if you have a card with a $1000 limit, keep your balance at $400 or less)... but keep your accounts open, because 15% of your credit score is based on the longevity of your accounts... and on your older accounts, use the cards every once in a while (make a purchase at least once every six months) or the credit card company may report that your card is inactive, which could hurt your credit score... paying off everything will have a positive effect on your credit score, but I could not say how much your score would go up.... I have heard of someone whose score increased 50 points in six months after she paid off all her accounts

Answer 4

If you pay them all off, your score will increase.

Fair Isaac and Company (F.I.C.O) is the only company that that calculate how much (accurately).

If you close the accounts it will hurt your credit.

Here is a good article about credit scores: http://www.expert-credit-advice.com/credit_score.htm

Browse through the rest of the site for other information regarding credit.

Answer 5

There's no exact answer since your credit score is formulated on many variables. Reducing the amount of debt compared to the amount of available credit will increase your score. Over time, if you continue the good pattern, your score will keep increasing.

Answer 6

Can I assum that none of these credit card debts are currently delinquent? If so, that's a differant problem.

But generally, you don't want to pay off your credit card completely. They like to see you hold it to 25% of the credit limit or lower.

Revolving charge cards are (espcially the larger bank cards like Chase or Bank Of America) are excellent.

Answer 7

You can't really make a direct calculation about how much it will actually raise your score, but depending on your income to debt ratio and the number of cards you have, it will most likely raise it some, more if you are very deeply in debt compared to your income.

Answer 8

It will take time. I'd suggest talking to a Certfied Financial Planner. Here's a tip - cut the cards, and don't spend more than you earn each month. If you want a credit card for convenience and to build your credit - you have to be able to pay it off every month to really get a good credit score.

Answer 9

You need to keep one or two of them open and make your monthly payments on time, to keep a monthly payment and tradeline history going.This will raise your score. Paying them all off can lower your scores. Just keep them well below the limit, but keep a balance going on them. You can't have too much credit, but you can have too much debt.

Answer 10

even as I trust the ultimate answer. i'd pay it in 60/40 sending the most to the smaller bill and getting it in route of paying off. yet then a minimum of with you sending in an more effective price you'd be getting the interest paid off swifter. Then upon getting the different paid off "decrease" it up. (do not close the account, do in basic terms not use it for a lengthy time period). Then take the money you've been sending to the smaller card to the more effective card. The more effective funds you deliver it the faster you'll have it paid off. good luck!!!!!!!