My credit score?

Question

i'm 19 years old my credit score is a 599 i have 2 major credit cards and a couple deparment store cards all of which are maxed out and i also have a car that i make payments on....but with the cards if i pay them off about how much can i expect my score to be effected?

Answer 1

From myfico.com...

Improving Your FICO® Score


It’s important to note that raising your score is a bit like losing weight: It takes time and there is no quick fix. In fact, quick-fix efforts can backfire. The best advice is to manage credit responsibly over time. See how much money you can save by just following these tips and raising your score.
Payment History Tips

* Pay your bills on time.
Delinquent payments and collections can have a major negative impact on your score.
* If you have missed payments, get current and stay current.
The longer you pay your bills on time, the better your score.
* Be aware that paying off a collection account will not remove it from your credit report.
It will stay on your report for seven years.
* If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor.
This won't improve your score immediately, but if you can begin to manage your credit and pay on time, your score will get better over time.

Amounts Owed Tips

* Keep balances low on credit cards and other “revolving credit”.
High outstanding debt can affect a score.
* Pay off debt rather than moving it around.
The most effective way to improve your score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.
* Don't close unused credit cards as a short-term strategy to raise your score.
* Don't open a number of new credit cards that you don't need, just to increase your available credit.
This approach could backfire and actually lower score.

Length of Credit History Tips

* If you have been managing credit for a short time, don't open a lot of new accounts too rapidly.
New accounts will lower your average account age, which will have a larger effect on your score if you don't have a lot of other credit information. Also, rapid account buildup can look risky if you are a new credit user.

New Credit Tips

* Do your rate shopping for a given loan within a focused period of time.
FICO® scores distinguish between a search for a single loan and a search for many new credit lines, in part by the length of time over which inquiries occur.
* Re-establish your credit history if you have had problems.
Opening new accounts responsibly and paying them off on time will raise your score in the long term.
* Note that it's OK to request and check your own credit report.
This won't affect your score, as long as you order your credit report directly from the credit reporting agency or through an organization authorized to provide credit reports to consumers.

Types of Credit Use Tips

* Apply for and open new credit accounts only as needed.
Don't open accounts just to have a better credit mix - it probably won't raise your score.
* Have credit cards - but manage them responsibly.
In general, having credit cards and installment loans (and paying timely payments) will raise your score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.
* Note that closing an account doesn't make it go away.
A closed account will still show up on your credit report, and may be considered by the score.

Answer 2

once you start making payments on the maxed out credits, (you have to make sure you are making more than the minimum payments on each card) your scores should jump up between 50-100 in less than 6 months. This will only happen if you are lowering the balances significantly or have paid them off in full. once you have accomplished this do not cancel the cards. you must keep these cards open to maintain your credit history current. by keeping the credit card accounts open, you are showing the credit bureaus and financial institutions that you are responsible with the credit that is available to you. on the flip side, if you start canceling the credit cards once you pay the balances off, your credit scores will drop because you can not handle the amount of credit that is available to you because you are liable to max out your credit cards again.

Answer 3

A big part of your credit score is the debt to available credit limit ratio. If you go over 50% you kill your score. The fastest way to improve your score is to pay down those credit cards to below 30% of the available credit. Better yet, pay them off completely.

Answer 4

If you close old credit accounts, your credit score goes higher: Do not be taken in by the lenders claim that closing old, inactive accounts can make your credit score go higher. In fact, the opposite is true as per the current system of rating. When you cancel your old debts, your credit score goes down due to shorter credit history. The better option will be to limit or close the new accounts to decrease your levels of credit. Do not apply for the new credit because it can bring down your score.

Answer 5

Hi,

Even if you pay off now, it will take at least next six months to show up in your credit report. Check out http://financeguru.consumerspot.info for some useful info and tips on building credit score fast. Good luck!

Answer 6

Kevin, I strongly urge you to take money management classes. You obviously have no concept of how to manage money and at your age, you need all education and knowledge you can get. This kind of spending could impact you the rest of your life. Educate yourself in how to handle money now. Don't wait.