had changed from a 546 to 608 I paid off 2 credit cards and got a new credit card. Is that what helped it. Both?? Please let me know how to continue to bring up the score. I am quite happy. I would like to bring up to 640 how can I do that??
2007-11-04 02:17:39 · 6 answers · asked by Lynn H 1 in Business & Finance ➔ Credit
Before I go any further, I'm going to break down what makes up your score:
a.Payment history-35%
b.Total debt owed vs. avaiable credit-30%
c. Length of time establishing credit-15%
d. Types of credit established-10%
e. Inquiries and New accounts-10%
Ok, by you paying off your 2 credit cards, that immediately affected factor (b). Were those 2 cards maxed out by chance? If so, that's the reason for the dramatic increase in your score. Also, the new card will help, but a little later on down the line at least a year or so later until the account establishes payment history. My suggestion would be although you've paid those cards off, I would still use them lightly. And what I mean by that is that: treat those cards as well as your new cards like the credit limit is only $50, regardless of how much the limit is. Make small purchases (like $20 or so) that can be paid off on time every month. Wy you want to do this is that you want to still continue building credit with those cards by showing monthly activity, but at the same time not going into debt trying to do it. Like I mentioned earlier, 30% of your score depends on you keeping the balances no more than 25-30% of your combined avaiable credit. For example let's say that the total available credit of the 2 credit cards you paid off and the new one you just got is $6000, you should have a balance of no more than $2000 between the 3 cards. The lower the balancce, the better so that you won't have to pay additional interest.
My suggestion at this point would be to charge what either can be paid off or a small balance left over every month.
2007-11-05 09:30:02 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Yes, the paid off accounts helped, but opening a new one didn't really help (in just increases the open inquires).
Just put aside the paid ones (don't close them) and use the new one as little as possible and pay balance off every month.
If you maintain the monthly payments on time and pay more than minimum, your score will rise in small increments but will still rise.
DON'T assume any more debt and pay down any other liabilities (i.e. auto, mortgage, boat, RV etc). Eventually your score will break the 640 mark and go higher after a few years.
Remember "TIME" will heal all broken credit scores.
2007-11-04 05:19:53 · answer #2 · answered by Sgt Big Red 7 · 0⤊ 0⤋
Always keep your credit cards with a balance of less than half the limit this will help a lot. Also if you want to build credit charge small amounts and pay them off this will help in the long run. Also keep you inquires to a min. this will kill you score.
2007-11-04 03:35:19 · answer #3 · answered by Helping you 2 · 0⤊ 0⤋
Go to this website below and read it all! You'll be glad you did because this site is all about credit repair and how to get your credit score up! Don't destroy ALL your credit cards, just use them wisely and don't max them out and you should be fine!
The only people I know who are happy to get rid of all their credit cards are those who had no contol over their spending habits and bought everything they wanted whether they could afford it or not!
I got my score up to 729 from 485 in a little over a year with the help I got from this site, but also get a credit monitoring service like 3 in 1 gold from Equifax and keep an eye on your credit1 You can check your own credit as often as you want without damaging your score!
You need to have credit monitoring because trying to make your score go up with out real time credit monitoring is like driving while blind, it hurts when you crash into something!
2007-11-04 03:07:10 · answer #4 · answered by Anonymous · 0⤊ 4⤋
my suggestion for a happier financial future is to get rid of all your credit cards. If you need a cc, keep one and try not to use it unless it's an emergency, then pay if off as soon as you get the bill.
The government wants to keep you a slave. The easiest way to do that is to KEEP YOU IN DEBT.
take note and be wise: I got rid of all my credit cards 10 years ago and am extremely happy that I did.
2007-11-04 02:28:31 · answer #5 · answered by Ronaldo-is-the-man 2 · 0⤊ 1⤋
Good for you. Continue to pay off those credit cards. That is what does it. I am happy for you.
2007-11-04 02:20:50 · answer #6 · answered by That one 7 · 0⤊ 1⤋