Credit score ratings!!?
I have debt of 5000.00, and got behind, and now I am current on my debt but when I got behind on my debt it dropped by credit from 690 to 580. So, now i figured i would moving back home to pay off my debt, I have recently got a raise income thats significant. So i figured in the amount I was paying at my apartment and its utilities i can apply that allto my loan and pay it off in 2 months. Will this help my credit score? SO is paying off my debt so quickly going to hurt my credit?
Public Comments
- Nope.
- I'm not an expert, but I think it will help by reducing your outstanding debt. Initially though, it might be only a small jump since only time heals the damage from being late on payments.
- Anytime you pay off a debt it helps your score. Unfortunately, as you know from getting behind your score drops quick when you mess up and it rises slowly when you do the right thing.
- absolutley it will help your credit... paying off your debt is the #1 priority. No paying it off quick will not hurt you.. however, if you carry a small balance monthly (like $20 or so) it does help your score
- Paying off your debt helps your credit score because it boost your debt to credit ratio! There are many factors that come into play, if your credit score is important to you then you should consider tracking it for a year, or getting a repair kit to boost your score.. When you're trying to rebuild your credit score it's important to get a comprehensive view of what is actually effecting it... Your Credit Score is calculated with the following breakdown: 35% - Payment History 30% - Credit to Debt Ratio 15% - Credit History 10% - New Credit 10% - Credit Types in Use If you excel in one area and lack in another, only fixing the areas which you lack are going to improve your score. I've got a lot of information on my blog about credit scores, and I get a lot of questions so feel free to check out any of my posts on millionster.com; I believe my articles here address many of your concerns but if they don't and you still have any specific questions feel free to leave a comment and I'll reply. How Can I Increase My Credit Score http://millionster.com/articles/debt/ask-1mil-how-can-i-increase-my-credit-score/ and 10-Ways to Boost Your MyFico Score http://millionster.com/articles/debt/ask-1mil-how-can-i-increase-my-credit-score/
