Is there any way that once I pay off these debts and continue to receive good credit, that that score can actually improve and get higher? I am going to be getting a vehicle soon and am planning on getting married in Feb. 2008. Should my credit be good enough if I continue to be "clean" at this point, or should I be worrying????
2007-06-30 14:43:56 · 7 answers · asked by gododjgjodjod 1 in Business & Finance ➔ Credit
It's good enough right now. But, utilization is a factor. They may improve if you pay them down more. It definitely can't hurt anything.
You should never let your balances get over 30% of your total credit limit.
2007-06-30 15:00:44 · answer #1 · answered by Anonymous · 0⤊ 0⤋
725 is great! I know that some sites take your credit history and score and tell you specifically how to raise your credit but I always suggest that once you charge something... pay it off when the bill comes and then of course just get your debt paid down by not paying the minimum. There is no point in saving tons of money if your interest is higher than the interest rate you are earning on the $ in the bank. It is better off to pay the debt off ASAP. Usually at 700, you qualify for the incentives for vehicles. One thing that might get you though is your income ratio. You might want to call a dealer and ask what the rate is now. But like if 32% of your take home monthly is only 400 and you want your payments to be $600 at the incentive rate of 2.9% because you know what you can afford, then they can't do it because the income is not enough and does not work in the ratio. Good luck to you and congrats on the marriage!
2007-06-30 14:57:38 · answer #2 · answered by Anonymous · 0⤊ 0⤋
First, 725 is fantastic considering most scores are only up to 800. You should have no problems with a vehicle (which will improve it most likely). More of a concern for a future house would be your debt/income ratio, so eliminating any revolving debt should be a concern.
2007-06-30 15:01:48 · answer #3 · answered by Josh H 2 · 0⤊ 0⤋
725 isn't bad, some place consider anything over 720 to be good enough for there best rates. Pay off your debt and keep paying things on time and your score will get much better.
2007-06-30 14:48:53 · answer #4 · answered by shipwreck 7 · 0⤊ 0⤋
To make your FICO score better, always pay on time....it's even better to pay ahead of time and pay more than the amount due if you can. Applying for credit, either cards or furniture or whatever, will cause your FICO score to go down somewhat....but only temporarily. As for old outstanding bills, I would say it's better to pay them off than have them lingering on your credit report. Who ever told you to forget about paying them gave you some bad, bad advice. Call the creditors and work out a payment plan with them as soon as possible. Best to you.
2016-05-19 23:10:47 · answer #5 · answered by Anonymous · 0⤊ 0⤋
shiprepairwoman is right. also improve your debt-to-income ratio.
2007-06-30 14:50:57 · answer #6 · answered by hi91977 3 · 0⤊ 0⤋
PAY YOUR DEBTS AND DO NOT BUILID UP ANY NEW ONES.
2007-07-01 05:50:07 · answer #7 · answered by madison t 1 · 0⤊ 0⤋