If I was to pay off all my credit, will my credit score improve?

If it does improve, by how much? Also, if I've been paying everything on time and continue to, does that make a difference on my credit score?

Public Comments

1. Paying on time will definitely improve your score. Doesn't take too long, if you are paying on time. Try to use the credit card for paying most of your bills too.. use it for most payments.
2. Of Course It Would.
3. I'm in the same boat as you. Each time you payoff or remove a negative debt from your credit report your score increases. it may however take a while before you notice the difference. Every on time, early, late, or non-payment makes a difference. Shoot for the first two since they have the best outcome. Good luck!
4. yes! The best way to improve your credit score is to maintain low balances on credit cards and pay them off every month. Another trick is to pay the bill a week before it is due. You will not see an immediate high jump, but if you maintain this you will get a steady rise. Remember that your score is based on the 3 main companies whose scores are put in a highest, middle and lower level. Most companies looking at your credit will take the middle score. Also limit the amount of creditors looking at your score. If to many look at one time, it makes the creditors nervous and will lower your score. Good Luck!
5. When I worked at TRW/EXPERIAN seemed to be the sysop view that your checking account ballence was the best score triger. I could be wrong but make you payments on time and have a large amount of money in your checking or savings account for a month or two they you'll get lower interest credit cards mailing you and competeing for your buiz.
6. It will definitely increase your score. Hard to say by how much since the formulas of the credit scoring agencies and Fair Isaac are closely kept secrets. But in general, if your allowable credit is high and your oustanding credit is low, that's a good thing. Another good thing is to pay your bills on time. Late payments are bad and very late payments are very bad. Collections and charge-offs are very very very bad and bankruptcy is the worst, but surprisingly, the clean slate makes you a better credit risk and you will actually start getting credit offers, albeit at rather high rates.
7. Your credit score is a combination of many factors. Paying off your credit card debt is one way to increase your credit score, but it would be impossible to predict how much it would increase. After all, being consistently late on your payments could also offset any gains made by paying off your debt. When I was in college, I worked in the customer service department of a local Sears store. I remember people being denied credit because they had too much debt (i.e. it would be difficult for them to make the minimum payments if granted more credit). I also saw people being denied credit for having too much AVAILABLE credit. There debt load was aceeptable, but their available credit could get them in trouble if they maxed out their credit cards. Those are just a few examples of things that can impact your credit report. The best think to do is have as little debt as possible and pay everything on time.
8. Paying on time but with a little extra is best. Bankruptcy lasts for 7 years. By all means pay off as much as you can and will improve your score. Best credit score is for people who have lots of bills but pay always on time and little extra. Go figure.
9. Some of these posters have no clues about FICO credit scores. Lets clear up some myths: 1) Having a savings or checking account will have no bearing on your credit score. It isn't reported to the credit bureaus. 2)Paying your statement balance on your credit cards every month will improve your score. Of course not paying on time will lower your score, but the credit card company will report your balance every month and your credit limit. If your limit is $2K and you always have a $1k balance you will be reported as utilizing 50% of your credit line. That will be OK but it would be better if you had less than 35% on your card. 3) Credit Reporting Lag-If you pay off all your credit cards and show zero balances your score will improve. However it may take 30-60-90 days for that to show up on your credit report, depending on how often your credit card companies report. If you want to have "Excellent Credit" (FICO scores above 720) do the following: Have about 3-6 revolving accounts with as close to a zero balance as possible and 1-2 installment accounts paid on time every month. As long as their are no other negative items on your report after 12 months you will have excellent credit that you will only have to maintain. Good Luck