I have a 9,000 debt on my cc and I send in about double of what the minimum payment is. My current credit score is 705 and Im 21. I want to improve the score since my credit used to be 725. so will paying in advance INCREASE MY CREdit score?
2007-11-26 07:04:28 · 5 answers · asked by super1 3 in Business & Finance ➔ Credit
Yes it will help your score somewhat, but you will wait for a long time to see the increase! I would more than double your minimum payments because a percentage of your credit rating and score is based on how much credit you have and how much is used up!
Go to my website because you will learn a lot from here and after I went through ID theft and bankruptcy I still got my score up from 486 to 730 in a little over a year, so this is something I know about!
It would also take a long time to post everything you should know here and you will benefit from the "how credit scoring works" section too!
2007-11-26 07:47:13 · answer #1 · answered by Anonymous · 0⤊ 0⤋
This is what makes up your score:
1. Payment history-35%
2. Total debt owed to available credit ratio-30%
3. Length of time establishing credit-15%
4. Types of credit established-10%
5. Inquiries and New accounts-10%
What you need to understand is this: #1 #2 are affecting your credit the most. So, by knocking down that $9K balance would definitely help your score. Just make sure that you're paying on time.
2007-11-26 15:51:04 · answer #2 · answered by Anonymous · 2⤊ 0⤋
A big part of your credit score is the ratio of debt to availble credit limit. Anything over 30% kills your score.
If you have $9,000 credit card debt, you need to be paying a lot more than double the minimum! Stop using those credit cards and start throwing every penny you can at that debt to get it paid off.
You are wasting a lot of money on that high interest and with that much debt, you could find yourself in a lot of financial trouble very easily. Pay off those credit cards and only charge what you can afford to pay in full every month.
2007-11-26 15:16:37 · answer #3 · answered by bdancer222 7 · 3⤊ 0⤋
The more you lower your debt balance, the better your score. The ideal ratio is approx 20% of your credit limit. If you can reach this point with your credit card, then you'll have the perfect score, but at the moment, it will take time.
2007-11-26 15:09:42 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I don't believe that it does but the feeling you get from paying it down more quickly sure has benefits.
2007-11-26 15:09:33 · answer #5 · answered by infoskoop 2 · 0⤊ 0⤋