I have 5 accounts equaling $3400 in collections and no revolving credit. In hte next 3 months I am going to pay off all of my debt and open 2 - 3 secured credit card accounts. If I were to apy off my my debt and maintain low balances and pay on time for 6 months how much will my score improve. Oh yeah it's a 528...
2007-03-14 10:43:37 · 3 answers · asked by timmy78 2 in Business & Finance ➔ Credit
getting rid of delinquincies will improve your credit score DRASTICALLY
pay those collections and keep you credit to debt ratio at about 1/3
meaning if you have $1000 of credit keep a $300 balance and ALWAYS PAY ON TIME
give it 6 months and you could be looking at a 680-700 fico score
2007-03-14 10:58:10 · answer #1 · answered by EF 2 · 0⤊ 0⤋
Paying the collections will close the accounts therefore allowing the 7 year reporting clock to begin. As far as opening new credit card accounts, a previous answer is right on the mark, keep your balance no more 1/3 or your credit limit and pay on time. However I do disagree with your score being a 680-700 in 6 months. If you are currently a 528 in 6 months assumin 3 new credit cards, I would guess a score of 550-575, because the collections will still show up on your credit. Car loans and home loans build your score the fastest. I would guess it will take 5-6 years to reach the high 600's.
2007-03-14 11:57:52 · answer #2 · answered by surgicalvenom 2 · 0⤊ 0⤋
If you pay off the accounts that are in collection - that will help in terms of your credit profile, but not much with your score. If you open new accounts - that also reduces your score, but over a period of six months (good pay history) - your credit score will begin to rise. There are many factors which effect your credit score and not just the number of accounts you have open. Credit score is best effected by keeping a low amount charged, and making timely payments.
2007-03-14 10:59:33 · answer #3 · answered by Terrie 3 · 0⤊ 0⤋