I think my credit score is about 630. If I am about 11,000 dollars in credit card debt and I pay it all off in one day, will my credit score go up a lot?
2007-01-11 05:27:00 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
p.s. Credit cards are the DEVIL! lol
2007-01-11 05:46:19 · update #1
Yes, This will substantially increase your credit score. However, do not close the account leave them open. a large part of your score depend on the length of time that you have had open credit lines in good standing. so and open account with no balance is a very good thing. After you pay your accounts to a 0 balance it will take sometime 30-60 days for that info update to your credit report. once the account balance info is updated your credit score will start to improve. the longer the account is open in good standing with a low or no balance the higher your score will climb. Fixed rate loans such as car loans and mortgage loans in good standing for 24+ months will bring your score into the mid 700's. Credit score swings from mid 700's to mid 600's are largely due to high credit card balances.
2007-01-11 05:43:07 · answer #1 · answered by nick w 2 · 1⤊ 0⤋
You should pay off your credit cards if you can. There's no reason to continue paying finance charges if it's all possible to avoid doing so.
Your credit score will go up quite a bit if you have no other glaring problems on your credit report. If your score is low just because of your balances, you'll see a nice rise probably above 700 within a month or so after paying the bills off.
If you have other issues on your credit report, the effect of paying off the balances will be less.
As others mentioned here, do keep the accounts open to keep the credit history intact and keep the available credit percentage strong.
Learn more at http://www.thetruthaboutcreditcards.com
2007-01-11 06:25:39 · answer #2 · answered by Todd S 3 · 0⤊ 0⤋
LMBO, uh heck yea it'll go up.
If those are current credit cards then pay it off it you can.
If they're in collections, you'll need to get an agreement typed up BEFORE you send them a dime. They'd need to read it, sign it, and return it to you under your terms. Your terms would be that if they accepted the money then they will report "Paid In Full" on your credit report. Otherwise a scrupulous collection agency may not report it and help your score go up.
2007-01-11 05:39:28 · answer #3 · answered by mycountryfamily 4 · 0⤊ 0⤋
Not as much as you might think...because then you'll have a large amount of available credit. They ding you both ways. But, if you're doing it to buy a home? Do it! Even if it means you have to take a larger loan....high interest non-deductible debt for low interest deductible debt? You bet!!! But, after you do it...please don't let the balances get above 4-5k again.
2007-01-11 05:44:13 · answer #4 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋
no not absolutely true. Your scores are reflected mostly by the limit on the bank and your pay history where revolving is concerned. If you have that much cash --- pay them down to $100 balance and then see what happens. For example
Limit $5,000 --balance $100 great. the scoring module picks up you can handle credit.
Conversely
$5,000 limit $4,988 balance BAD you can not handle $$.
Always pay on time all the time every time.
2007-01-11 05:35:38 · answer #5 · answered by golferwhoworks 7 · 0⤊ 0⤋
Revolving debt is highly weighted in FICO scoring, so paying it off will do wonders for your score. If you are close to your limits, it could result in a 100 point jump or more! MyFico explains it.
2007-01-11 05:48:50 · answer #6 · answered by Kevin K 3 · 0⤊ 0⤋
They mostly look at if you were late on a payment or missed some if you were over the limt etc. Keeping your monthly payments up is very imporant it goes on your credit report and shows that your able to make monthly payments.
2007-01-11 05:46:11 · answer #7 · answered by Stacey h 1 · 0⤊ 0⤋