2007-11-20 01:58:14 · 7 answers · asked by Mindy H 2 in Business & Finance ➔ Credit
Your credit report consists of information from the last seven years, and it all factors in to your score. If you pay your cards off and keep them at a zero balance, it will look good but won't automatically give you great credit. Make sure you don't close your existing cards unless absolutely necessary. Having open lines of credit with no balance looks great on your credit report, and shows lenders that you can use credit responsibly. However, if you know that you will get yourself in trouble again, you might want to close all but one, or ask your lenders to reduce the limits on your cards.
2007-11-20 04:06:16 · answer #1 · answered by Anonymous · 0⤊ 1⤋
How long it will take depends what is in your credit reports. If you haven't looked at them, then now would be a good time to do so! Also, most people have errors in their reports that should be addressed!
Read all of the information in my website. I've been through an ID theft and a bankruptcy and I still got my score up from 486 to 729 in a little over a year! Consider enrolling in a credit monitoring service like Equifax 3 in 1. You CAN get a free copy of your credit report, but it is only good once a year for 30 days and I'll bet you will want to challenge items in your report so you will need this. This is how I went about cleaning up my credit and raising my score by 235 points!
2007-11-20 11:53:37 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Your credit will not "automatically go back to good" by paying off yoru credit cards. If they have been delinquent, or worse, charged off or in collections, that information remains on the file. It will show paid in full, which is better than still showing the balance as being due, but it doesn't erase the fact that they had been delinquent in the past.
2007-11-21 14:43:30 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It will most likely take years. Then you get a bad credit rating because you have no recent credit. I'm going thru this right now.
Seems if you are not paying on something, you have bad credit.
2007-11-20 10:07:07 · answer #4 · answered by Big Bear 7 · 1⤊ 1⤋
In the credit scoring model, 35% of your score is based on your payment history and 30% of your score is based on your debt ratio. If you pay off your outstanding debts, chances are you will see your score increase. It might not be drastic or immediate, but things will look better overall.
2007-11-20 11:26:33 · answer #5 · answered by YSIC 7 · 0⤊ 0⤋
as long as you have no deliquent or other "not so good" credit, your score will improve as credit card debt is paid off. if you have any "dings" in your credit, such as repo's or collections, it will still improve, but it will take longer to get back to the optimum score.
2007-11-20 10:08:39 · answer #6 · answered by Mr. RN 3 · 2⤊ 0⤋
THe scoring model uses a trend analysis. See www.myfico.com
2007-11-20 10:13:04 · answer #7 · answered by Anonymous · 0⤊ 0⤋