Posted on: 22nd Apr, 2010 12:50 pm
How much does it really help to pay off the existing debt from your credit report? I mean does it make a major change in the score? What should I do to significantly increase my credit score?
Depending on the debts you have on your report. It is always beneficial to keep your credit balances at 40% or below. You should see your score begin to increase as I have done this personally. I hope this helps...
I agree, but go a step further. I've always used 33% (a third) as the level at which you ought to keep your balances as a maximum. The lower, the better, in truth. Of course, there are plenty of other factors taken into account when a credit score is calculated. Keep inquiries from new creditors to a minimum, don't make it a point to open new accounts just to increase credit availability, as it may work against you, and (of course) pay your accounts in a timely manner.
What is your score now?
It is easier to increase a score if it is lower than if it is higher. If you have a score of, say, 670 or 710, it is difficult to increase the score "significantly" becasue you are already in a bucket with no late payments.
If scores are already "decent" but not where you want them as noted above get credit card balance below 40% or 30% of the line available and continue to pay on time and after that time must pass to increase length of credit history.
Do not CLOSE credit cards, at least not old ones--you lose the length of open credit history. You could close new ones.
It is easier to increase a score if it is lower than if it is higher. If you have a score of, say, 670 or 710, it is difficult to increase the score "significantly" becasue you are already in a bucket with no late payments.
If scores are already "decent" but not where you want them as noted above get credit card balance below 40% or 30% of the line available and continue to pay on time and after that time must pass to increase length of credit history.
Do not CLOSE credit cards, at least not old ones--you lose the length of open credit history. You could close new ones.
I agree on the 33%. That is the same rule of thumb that I go by. As for number of credit card accounts, the ideal number is between four and six and longevity is definitely a factor. older card = greater credit history = higher credit score.
Hi,
It is always preferred to keep the credit card balance below 40% to get a good credit score. However it is also essential to check your credit report whenever you clear off any account. It may happen that the lender does not report it to the credit bureau and thus hamper your credit score. Try to make payments regularly which will help you to improve your credit score.
It is always preferred to keep the credit card balance below 40% to get a good credit score. However it is also essential to check your credit report whenever you clear off any account. It may happen that the lender does not report it to the credit bureau and thus hamper your credit score. Try to make payments regularly which will help you to improve your credit score.