How many points can your score increase when credit card balances are paid 30% below your credit limit?
I owe more than 75% the balance on my credit card. If I pay the balance below 30% how many points should my credit score increase? Does this point system also apply to personal loans as well?
Public Comments
- It is hard to say how much your score will go up. It depends on the amount of overall debt you will still have. But it will got up, promise. Credit score calculations are not made public, so no one can give you an exact answer. It depends on your accounts, your age, the age of your accounts, your payment history, all your account types. On term accounts, it isn't quite the same, since the debt doesn't revolve like a credit card - it just slowly pays itself down. The overall debt balance counts, so as it pays down, your debt load is lower and your score gets higher.
- There is no actual way of knowing how much your score can increase. So, if you want to know, you should probably do an experiment, and compare your score now, and then keep your credit card balances under 30%, for awhile and then see how much they have increase. Keep in mind there may be other factors involved. But, if you do this, continue to pay on time, pay the minimum or more than the minimum amount, don't go over your credit limit, and don't apply for anything within this period, you should see and increase. Now how much of an increase I just don't know.
- I don't think anybody knows precisely how credit scores are calculated but I've seen from the advice experts on PBS that if you increase your credit to debt ratio, your score will go up. And if the ratio is positive, meaning that your "available credit" is higher than the balance you owe, that will generally put you into a better than average category. Of course your credit history goes back 81 months in most cases, so if your credit ratio is right side up today but has been upside down for that last 5 years ... well you get it right?
- Dependent upon other things withing your credit score the simulators say around 30-50 points. Again many other things are associated with this
- http://www.cellsware.info/restorecredit really helped me out in figuring out how to raise my credit score the most i can.
