Which will raise my credit score better?
ok I have been told that paying off debts in full actually hurts my credit score and then the more payments I make actually hurt my score b/c of the the changes in the activity dates and then I was told paying them in payments raises my score I have been told applying for a credit card and paying off the balance every month will help my credit score I am told that more I have (c.c's) is better to but not to apply for to many b/c they lower my fico points I am told there is nothing that will remove my bad points at all I currently have around 17,000 dollars debt 90% is doctor bills I am working on a goal to get in the 700 range within the two years by paying these debts and what ever will help as well also if I use a c.c to pay payments on old debts and keep my balance paid every month will this double my points I am so tired of mixed answers I just want to know what will work the best I am not in a big hurry being I am wanting to make this a 2 year plan not a fly by night thing thanks
Public Comments
- HEY YOUR BEST WAY IS TO HAVE ALL YOUR DEBT UNDER 40% OF YOUR HIGH CREDIT LIMIT. FOR EXAMPLE IF YOUR CREDIT CARD LIMIT IS A 100 DOLLARS OWE THEM 35 DOLLARS, DON'T PAY THEM OFF BECAUSE THEY WILL NEVER KNOW IF YOU CAN HANDLE DEBT THAT'S THE MAIN ISSUE WITH CREDIT AND NEVER EVER GO OVER YOUR LIMITS THAT WILL MEAN YOU R LIVING OFF YOUR CREDIT CARDS...I REALLY HOPE I HAVE HELP YOU ..IF YOU HAVE MORE QUESTION EMAIL ME AT ISKRAPUCHI@YAHOO.COM, I'M A MORTGAGE BROKER AND FINANCIAL ADVISOR I HAVE HELP A FEW PEOPLE GET BACK ON THEIR FEET
- If you apply for credit cards to pay off your debt and you can not pay off the loan from credit cards, you will have MORE DEBT later because of the high interest rates. Talk with your bank for a personal loan or line of credit and compare the interests. You can find out more information and tips from "Credit Repair" and "Debt Relief" at http://info.lifequery.com
- What you need to do is contact the people directly. Most of your debt will be charge offs. If you pay these it will show on your report as you paying for bad debt. What you can do is contact them and tell them that you will pay them x amount in return you want a letter stating that this should never have been on your account in the first place, or it wasnt delequent. They then have something like 60 days to take that off your report after you pay them. You do NOT want to make payments on charge offs. If its a current account you should pay it up to date, slow pays show badly. If you cant pay it up to date though slow pay is better than charge offs and no pays. The best way to build credit is to get a credit card and keep a ballace on it. This could mean putting gas on the card and paying it off once a month, or getting a car and making payments on that. Anything you can get current is good. ALSO I was told that the best credit is one major card and two store cards. In good standing of course. Also be sure to not check your credit too often as that will bring down your rating. For the medical bills you want to ask for a letter stating they shouldnt have been on your report and that insurance was to pay them, that seems to work best. Good luck!
- Here's a few credit and Credit Card basics: Use your card only for emergencies then pay your card off in full each month. Make sure you pay your bills on time, including utility bills. Also, applying for a lot of cards & offers of credit will create inquiries which could also lower your credit score. Avoid taking out cash advances unless absolutely as the fees are higher than average. View your credit report often to make there are no discrepancies.If there are negative items on you report then your 2yr plan may not work as well as you'd like as those items It could remain on report for 7 yrs from the date of last activity. For more info you can visit any of the three credit reporting agencies and/or view your rights under the "Fair Isaac credit reporting laws" Or try: www.ftc.gov/credit Hope that helps.
