How will my credit score would be better in the following situations:?

Question

1. I have US$25,000.00 4 credit cards 7500+7500+5000+5000
2. One have had balance 6500.00 for over one year but the minimum payment was going on time.but I just paid off and balance is zero now.
3.Second card 4000.00 out 7500credit I also paid off balance zero.
4. Third card which has 5000.00 Limit I just used two times in a year and just use it two time for a just few hundred and paid off as soon as i got statement. balance zero all year.
5.The fourth card I used 25% of the limit and paying the minimum payment on time but keep the balance same.
All card are more then 3 year old and paying on time, so please coments how my credit score would have efect in above situations.

Answer 1

Credit scoring is very complicated... it's not easy to explain, and Fair Issac, the creator of the "FICO" score only released limited information on how their formula actually works.

So, generally speaking, paying on time, and having low balances (under 40% of credit limit) will give you good credit.

Having established accounts (over 5 years) will raise your score.

Having different types of accounts (installment, revolving, mortgage) will raise your score.

Answer 2

Paying off the credit card balances will always improve your credit score. You should pay off that last card too. Save all that interest.

Answer 3

This credit score simulator in the link below is a great tool. You can put in scenarios like the ones you have outlined in your question. It then shows you how your credit score moves up or down.

http://www.truecredit.com/help/learnCenter/welcome/scoreSimulator.jsp

Answer 4

CREDIT SCORE-650 OR BETTER