will this increase my credit score.??

Question

I have a bad credit ,so what i did was i applied for 2 unsecured cards for bad credit ppl and luckily they approved me for credit 300$ each..what i'm planning is to Pay them full every month for the next 6 months. will it increase my score after 6 months, if so how many pts??.. and btw i'm approaching my 7 yrs credit history record and hopefully all my bad credit bfore 6 yrs may be eliminated.. any tips on this..please advise??

Answer 1

yes, its an excellent plan, but do not charge more then 180 dollars (30%) on the cards at one time, as to have a good debt to available debt ratio (as your credit line increases, you can charge more) and pay in full each month. now its just a waiting game. i would say you have a year to 2 years before you you can get a good enough score for a unsecured card, and at least 3 years with the unsecured cards before you will be able to get a decent APR on it. FICO is a mysterious thing, no one can say how much your score will improve, but with time, and your past indiscretions falling off, it will be sooner then you think.

Answer 2

You will not have great credit with 2 $300 cards and other poor credit entries (collections & judgments). People with great credit are those who have shown over a number of years that they have the ability to use large amounts of credit effectively.

I do want to say, that it is a good starting point. To understand the scoring model, go to www.myfico.com and hit the "Learn" button. 35% of your score is whether or not you are making payments on time.

Never use a card to get a loan. Pay all but $1 to force reporting. Every month it reports more than 49% of your highest credit usage as a current balance will depress your score. The creditors do not report immediately after you pay the bill. Good practices over time will get you increasing credit lines which will give you more opportunity to use or abuse the credit.

The score is a very fluid number, it goes up, it goes down, depending on your activity and the reason the creditors are pulling the report. Just learning the activities that are being tracked and doing what is considered a good activity will overall improve your credit.

Answer 3

Your plan is a good one. It's impossible to say by how much - the only ones that know for sure are the credit bureau actuaries. Every monththat passes with you practicing sound financial decisions will increase your score. Just don't expect to go from worst credit to best in 6 months - it takes time.

Good luck!

Answer 4

credit ratings run from 350 to 850. i have been in lending about 10 years and that i imagine the utmost score i have seen is about 830. the bottom i will undergo in ideas is round four hundred. Your ratings are astonishing. inspite of you're doing now, you're doing precise. in case you look at your credit rfile, you'll see some "factors" that influence your credit. the countless look very contrived to me. particular sorts of credit are more effective than others, with finance organizations being in route of the bottom of the heap. maximum persons should be more effective than pleased with your ratings.

Answer 5

Paying your bills on time will help your credit score!Also if you apply for credit to much it will lower your score rather than increase it!

Answer 6

The actual FICO is mostly a ratio of your debt to income.
The payoffs will help some but if you still carry a lot of unpaid debt (vehicle / student loans . . . whatever) or have low income . . . The FICO won't change much.
Either pay off existing debt or get a wayyy better paying job.

Answer 7

Paying your bills on time will help your credit score, but it's hard to say by how much depending on your other circumstances.

Answer 8

HAS TO BE 12 MONTHS FOR YOUR CREDIT HISTORY TO BE EXCELLENT WITH THEM , NOW , THATS WITH ANY CREDITOR , PAYING YOUR UTILITY BILLS EVERY MONTH INCREASES YOUR CREDIT SCORE !