raising credit rating?
If I had a credit rating of 650 and then paid off all of my credit cards and loans how much would or could I expect my credit rating to raise?
Public Comments
- quite a bit.
- Good for you! Congratulations. There's no way to predict accurately how many points it will go up, because it's, in part, dependent on how much debt you had when you scored 650, and what your optimal score would be in your individual situation (debt-to-credit ratio, bank balance, etc.) ...
- !!!!!!!!!!!!!THE ANSWER IS!!!!!!!!!!!! Because your credit to income ratio will increase which is one important factor in how your credit score is decided. SOLUTIONS TO GET HIGHER SCORE: 1) Buy your food, pay your bills like cell phone and so forth with a credit card...>BUT PAY IT ALL OFF AT THE END OF THE MONTH....this will show the credit bureaus that you borrow money but pay it back...>THIS IS THE FASTEST WAY TO INCREASE CREDIT OVER THE NEXT 4-5 months I work as a mortgage and financial consultant
- You can run different calculators at http://www.myfico.com/ to see how it would impact your credit score. FICO is the industry standard for credit ratings. You don't want to have 0 open accounts as that actually will look bad, not good. What I would do is pay down to where your credit to income ratio is very low and then leave the rest to pay monthly. Pay off the highest interest loans/credit cards and keep one or two of the ones with less interest.
- Does not always increase your rating! As your file will show no borrowing you may even be penalised in THERE eyes you not a borrowing customer............ and if you DONT need to borrow, although great for you but THEY dont like it because they cant profit by lending you money. crap way at looking at it but remember they are profit making business.
