I was just wondering if you don't have any more debt showing in your credit report because you paid it off, but there has been all those charge-offs and derogatories, will you still have a low credit score? Or does it get higher after some time? And do apartments and all the other places that check your credit before approving you for anything, will they still have any reason to decline you or do you think that hardly ever going to happen if it can be seen that you did manage to pay off all your debt?
2007-07-16 13:47:34 · 7 answers · asked by fallen_confused 2 in Business & Finance ➔ Credit
Yes, but not instantly.
Your credit rating will increase over time as you build a history of on-time payments.
Having a low debt (including credit cards, car payments, etc.), few monthly commitments (alimony, child support) in combination with a steady employment income can sometimes help out in many circumstances (e.g., car loans, apartments).
2007-07-16 13:50:14 · answer #1 · answered by TruthIsRelative 4 · 0⤊ 0⤋
Yes it will, but it will not show till the next month. Credit card companies report all info in the beginning of each month to the credit bureaus. When u payoff or pay down to under 50% the credit limit, it will increase your score quite a bit. But only the first month after paying the debt off. There after your score should go up a couple of points every month provided you keep paying on time and you dont open up new credit or max out credit cards. Maxing out credit also lowers your scores.
2007-07-16 21:38:24 · answer #2 · answered by luvkitties 2 · 0⤊ 0⤋
Sorry, contrary to popular opinion, debt, especially for cars and even more so for houses, raises your credit score! Go figure. Key things that raise your scores are how long you have had your credit; your debt to credit available ration, how many creditors you have, your credit history (whether you always pay on time), etc.
You can always check www.annualcreditreport.com and the various Federal agencies for a complete breakdown.
2007-07-16 20:58:33 · answer #3 · answered by Nothingusefullearnedinschool 7 · 0⤊ 0⤋
I would think so.Having no debt would also help get better credit on things like car deals,lower interest rates as well.
2007-07-16 23:43:05 · answer #4 · answered by cokezero100 3 · 0⤊ 0⤋
be patient...it will go up...slowly. the derogaories however will remain for 7 years, thus working against you
2007-07-17 10:05:40 · answer #5 · answered by zioncanyon 3 · 0⤊ 0⤋
Your score will go up for sure!!
2007-07-16 20:49:41 · answer #6 · answered by Gengis 6 · 0⤊ 0⤋
paying helps some.
but paying ON TIME is most important.
2007-07-16 20:50:09 · answer #7 · answered by Sufi 7 · 0⤊ 0⤋