I'm paying off my credit cards. How long does it stay on my credit report? Trying to improve my credit by having 1 credit card. Any ideas? I have like 6 credit cards. Someone told me it still says on credit report for a few years. Does it improve your credit score by paying off credit cards?
2007-10-03 11:44:31 · 8 answers · asked by greeniis777 1 in Business & Finance ➔ Credit
Yes, paying off your credit cards improves your credit rating. By paying off the balance you are increasing the amount of available credit which is a good thing.
More information about raising your credit score:
http://rismedia.com/wp/2007-07-18/seven-simple-steps-to-raising-credit-scores/
http://www.associatedcontent.com/article/140151/top_10_tips_on_raising_your_credit.html
http://www.zillow.com/wikipages/Hints-on-Raising-your-Credit-score
2007-10-03 11:50:22 · answer #1 · answered by Treadstone 7 · 1⤊ 0⤋
You won't notice an immediate effect on your credit score but you will have a lower debt to income ratio in which people will look at to consider you in loans and stuff. It does help your credit though by having your balance on your credit card being lower than 1/3 it's limit. If you have a limit of 3000, you wouldn't want your balance to go above 1000 because then it hurts your credit. You should have no more than 2 cards in your name at once. Hope that helps.
2007-10-03 11:53:26 · answer #2 · answered by Anonymous · 1⤊ 0⤋
The credit companies report to the credit bureaus promptly if they are getting some finance charges to the amount you owe them. Of course, you should NEVER be late on making atleast the minimum payments to keep building a good
credit history. It'll take 6 months to a year to see the improvements in your credit history.
Its a good idea to get your free credit reports each year.
To get your free report check out www.annualcreditreport.com
2007-10-03 14:16:57 · answer #3 · answered by Sreenu 4 · 0⤊ 0⤋
I was told if the total debt was about 30% of your gross wage and each card is under 26%, then it would help your FICO Score. The following has a good program regarding FICO Scores which might change their ratings after the current Sub-Prime loans disaster.
2007-10-03 11:54:02 · answer #4 · answered by American Dissenter 5 · 0⤊ 0⤋
one component they like to work out on your credit checklist is stability. Paying off an high priced stability by surprise is probably no longer your suitable wager. Spikes on your revolving debt could make you seem erratic...extra of a danger. i'm uncertain in case you're paying interest on that student mortgage yet, and uncertain what you're paying in interest on your individual mortgage. If the interior maximum mortgage is at intense interest you may desire to completely pay that off. Regardless, a secure selection which will make your credit seem so plenty extra appropriate in the long-term is to proceed to pay those off. set up some stability. It reflects nicely once you pay early, or pay extra effective than what your minimum fee is for that month. it fairly is great which you have this money coming to you and which you're working a stable job, yet you never understand once you have an emergency. My suggestion is to pay off a million/2 the interior maximum mortgage (all of it in the event that they're gouging you on interest), get caught up on your student mortgage, and stick something in the economic employer. If the money is fairly burning a hollow on your pocket, pay a month forward after which you will continually be a month forward on a minimum of those 2 expenses. returned, i are conscious of it ought to sound weird and wonderful to no longer pay it off awesome away, even though it will finally end up making your credit extra suitable sooner or later. yet another selection must be to open up a credit card account and pass your balances onto it, and then pay that each and each month. inspite of a credit of 548, you may desire to have the potential to discover a stable grant....seem for one with 0% financing for as long as you will get it. this might shop you from paying pointless interest mutually as letting you pay off your debt over the years. stable success!
2016-10-10 06:16:04 · answer #5 · answered by abdulla 4 · 0⤊ 0⤋
Pay on time and pay them off. BUT don't close the accounts (unless you can't control your spending). Everyone (like Suze Orman) says it's better to show that you have a great credit to debt ratio. I guess if you close your accounts - the amount of your credit goes down.
2007-10-03 11:57:33 · answer #6 · answered by DAM 1 · 1⤊ 0⤋
Yes it changes your score for the good. It will take a few months for you to see a big change, . Close 4 of those accounts. That will help your score as well. Keep low balances, that tells the creditors that you know how to manage your money.
2007-10-03 12:02:36 · answer #7 · answered by SandraD 3 · 0⤊ 0⤋
Yup it sure does help. I should know. :) best of luck to you.
2007-10-03 11:51:53 · answer #8 · answered by ? 2 · 1⤊ 0⤋