Raising Credit Score - which is best?

Question

Which is best for raising credit:

If monthly payment is $100:
1.) Paying $150 on time
2.) Paying $100 every 2 weeks (to be "ahead")
3.) Paying $100 on time, then $50 every week between payments.

I guess that I'm asking if there is a way that repairs credit fastest.

Thanks,
Leea

Answer 1

1.) Paying $150 on time -- in the world of money timeliness is more important. You dont need to be early. Just on time. Paying early isnt going to boost your score.. though I should mention that it doesn't take long for short term changes like account balances, payments, and available credit to show up on your credit report and effect your score -- likely these are the things to have impact over the short term, and you have a better change of fixing your score if you try to address one of those issues, which you can do easily in a matter of weeks.

When you're trying to build a solid credit score it's important to get a comprehensive view of what is actually effecting it...

Your Credit Score (also known as your MyFico score) is calculated with the following breakdown:

* 35% -> History of Payments
* 30% -> Debt to Credit Ratio (available credit)
* 15% -> Credit History (length of open accounts)
* 10% -> New Credit (are you expanding your credit)
* 10% -> Credit Types in Use (varied credit types from loans to credit cards)

If you excel in one area and lack in another, only fixing the areas which you lack are going to improve your score.

Here are my 10 steps you can use to build your credit score quickly. I raised mine to well over 700 points fro 500 using these steps in less than a year:

You can read more about these tips on my blog: How Can I Increase My Credit Score

* http://millionster.com/articles/debt/increase-fico-credit-score/

1. Know and Track Your Credit Score (be sure to sign up for the free trial of your credit score monitoring listed on the article below. It really helped my get my score up.)
2. Never Miss a Payment, Starting Today
3. Never use more than 20% of your Available Credit
4. Keep Credit Cards that Have No Annual Fees Open For as Long as Possible
5. Extend Your Credit Limit on Cards You Already Have before You Get New Ones
6. Get Credit Cards that Have CashBack Rewards to Contribute to your Balance
7. Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit-
8. If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan
9. Take out a Small Personal Loan and Repay it Over a Year
10. Ask Someone With Good Credit if They will Account Shadow you


There's no trick in how you setup payments to boost you score =) Creative thinking though! haha =)

Good luck

Answer 2

hi Jessie, listed here are some information I supply my consumers while they're finding to strengthen their credit for a house own loan. a million. by no skill close any debts. merely pay them right down to a 0 stability. 2. Paying previous debts ought to drop your credit. concentration on paying those days opened debts. 3. Get a secured mastercard. easily you will desire to pay a cost for this card yet you're borrowing out of your own money to re-set up your credit. purchase some thing small as quickly as a month (like $15 nicely worth of gas or nutrition) then pay it at modern. by no skill PAY THIS CARD pass 30 DAYS! 4. do no longer enable all and sundry pull your credit. After maximum of inquires, your score will drop. 5. in case you have open credit taking part in cards and that they are over the decrease, pay them under the decrease and pay them to a 30% stability or much less (occasion in the journey that your mastercard decrease is $one hundred, you will desire to basically have $30 on the cardboard). 6. Dispute something on your credit it is not any yours to the three credit bureau companies. wish this facilitates. nicely needs.

Answer 3

Pay online if you can. No missed mail.

My plan for you, pay minimum for a full year, then start adding more to the minimum.

My story: I was a passenger on a airplane with a carryover stop, where some passengers leave, more depart. While waiting for the plane to refuel, exchange the bags and such, the next plane over was getting US mail loaded upon. The convayer was going, one tray stopped, guy kept loading, two trays collide, both fall over, mail slips out of one and goes flying in different directions of the tarmac. Nobody goes after the mail that flies furthest away.

Answer 4

Leea,

Any extra money you pay above the minimum will accelerate paying off your debt. All three options you gave are better than paying only $100. I'm not sure what your balance is, but I ran the numbers using $2,500 at 18.9%.

Option 1 pays $50 extra and will reduce the time to pay off from 10 years, 6 months to 1 year, 8 months. It also saves you $1,109 in interest.

Option 2 basically pays an extra $100 per month. This reduces your time to pay off to 1 year, 3 months and saves you $1,226 in interest.

Option 3 is basically paying and extra $150 per month. This reduces your pay off time to just 11 months and saves you $1,290 in interest.

As I'm sure you've guessed, the more you pay above minimum, the more you save and the faster you pay off debt, which will help with your score.

Answer 5

I feel/believe I would pay the $150 on time or before. For instance if it was a credit card you should pay as soon as you get the statement or at least 12 days before it is due.

If it is a loan a straight simple loan and you only get charge on what is owed and there is no penalty for early payoff i would do option 2 most definitely.

Answer 6

If you are trying to improve your credit score, all those extra payments won't help at all.

You can improve your score by paying down your credit card balances below 30%. Best way is to concentrate on the highest interest rate card, while making minimum payments on the rest. When the highest rate card is paid off, move to the next till they are paid off.

After you pay off credit card debt, negotiate settlement of any negatives on your credit .

A consistent on time payment history is the best way to improve your credit.

Answer 7

as long as you are making the mininum payment. it won't matter how you pay it. Paying it off at once saves u interest charges which is probably the best way to do this.

Answer 8

Option 2 is good.

The link below also has different scenarios that you can choose to see how your score flunctuates. It is run by TransUnion at no charge.
http://www.truecredit.com/help/learnCenter/welcome/scoreSimulator.jsp