how EXACTLY do you raise a credit score? Pay off in full, or payments?

Question

I was wondering if someone could tell me how exactly my score could be raised the fastest. I have 2 credit cards, one with $300, the other with $2,500. Each with 12%APR.

I want my credit score to improve (i think its only 700) so whats the best way to go about it? Is it better to pay off a credit card in full or make payments? (My minimum payments are about $25 month, i always put at LEAST $60/month on each & was only late ONE time the entire 2 years i've had the cards)

THANKS

I already have 2 credit cards, i dont want to open a 3rd. Thats how people get into huge debt. I HAVE the money to pay off the card in full.. what i am asking is SHOULD i or just keep doing payments?

Answer 1

That "only late ONE time" is one time too many! Paying on time is the best way to increase your score. Late payments make a huge ding.

Carrying a balance on credit cards does absolutely nothing to improve your credit score. Pay them off in full every month and always on time.

A big part of your credit score is based on the ratio between debt and available credit. Anything over 50% debt will kill your score. The lower the debt percentage, the better.

Answer 2

If your past payments have already been timely then the next most important thing is to owe less than half of the total credit amount on the card. Another thing is to establish a different form of credit, take out a secured loan from your bank for about $500. you can have it paid off directly from your savings account or checking account depending on the bank. Today they also look at your payment of your gas bill, so make sure that it is paid on time as well. I know this isn't everything, but hope it helps.

Answer 3

The best way to get your score off is to use the card a little each month and pay off the balance in full each month. That way, your current balance is always zero but you build positive payment history.

Answer 4

first thing you need to do is transfer the 2,500 acount to a 0% balance transfer card.

Answer 5

just keep paying off your cards on time and that should do it