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Well first of all credit scores are based on all the information compiled in the credit report. If you pay off your credit card debt than your debt ratio will decrease, thus having a positive effect on your score. Depending on your credit card debt ratio will determine how much your score will increase. There are many ways to increase your credit score. But first lets look at the things that make up a credit score.
According to myfico.com your credit score is made up of 5 basic parts (all of those with sub-parts)
35% of your score depends on "payment history"
30% of your score is the "amounts owed"
15% of the FICO score is "length of credit history"
10% is "new credit"
10% is "types of credit used"


Of the entire score approximately 35% of your score is based on credit cards. Its funny that the thing that causes many peoples credit scores to drop is the exact same thing that can make them increase.
Let's run a scenario:
John Doe has a mortgage(opened 5 years ago), an auto loan (3 years old), and 3 credit cards (all over 3 years old).
He has never been late on anything before. If he were to have all 3 of those credit cards maxed out (lets just say for scenario purposes that they are all $10k limits) for a total of $30k in debt it would be possible for him to have a 650-660 credit score.
Now if John Doe was to pay off all the credit card debt, it could be highly possible for him to see a 100 point increase in his credit score and maybe even more (that could save thousands of dollars of interest on loans). This is just an example but helps explain how important it is to have credit cards opened and to keep the balances down.


So what can someone do that has no credit cards and poor credit? It is possible to do, what we call in the business, credit piggybacking. Basically you are borrowing someones perfect credit history and copying it over to your credit report.
This has been around for years and has been gaining popularity over the years. In fact, it gained so much popularity that Fair Isaac Corp had decided they would make a new credit scoring model that would remove the possibility of credit piggybacking. Oops, not so fast. That was proven illegal according to the equal credit opportunity act.


There are companies out there that are still doing credit piggybacking. Many have vanished because of the scare that this operation (credit piggybacking) would seize to exist under the new scoring model.


One of these companies which I personally used to see of its effectiveness was www.BoostMyScore.net which was my choice after doing much research with many companies. The thing that attracted me to them was the fact they are with the Better Business Bureau with no negative items against them. I noticed that this isn't the case with most companies in this business (that is assuming they are EVEN with the BBB-most weren't). Since I don't work there I probably am not allowed to discuss how they do business, so I would recommend you go to their website and do your own research.

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โˆ™ 2009-10-20 22:24:42
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Q: How much will paying your credit card off increase your 580 credit score?
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Can a debit card increase your credit score?

No, because it has nothing to do with keeping or paying off credit.


If you close out some of your credit card accounts and continue to pay them off will that increase your credit score?

You should not close a credit card if you are still paying on it. It will bring your credit score down. Close it when you are done paying. I know this because my mom owns her own credit repair/management business and she tells me what to do with my credit cards.


When might one get an increase in their rate on their credit card account?

You can get an increase by paying your bill on time for at least 6 months, late payments can result in credit limit and credit score decreases. You can also lower your credit utilization.


What actions would improve your credit score?

paying off your credit card bill


Will credit card increase my score?

That depends on the consumer using the credit card. Paying on time and keeping low balances will keep your good credit standing ...good. Not paying on time and having the balance close to the credit limit will decrease your credit score dramatically Having a lot of credit cards is not good either because the risk of possibly being in debt is high. Also if you apply for a new credit card it will reduce your credit score because it's consider a new loan with no credit history, as the credit card gets older and more established the score will go back up.


Does paying off high balance credit card help your credit?

Yes. Amounts owed accounts for about 30% of your credit score. Ideally your utilization rate should be 20% or less. Paying your credit card balance to 20% or less will improve your credit score.


How does paying by credit card affect your other credit cards?

Generally, paying by credit card does not impact your other credit cards UNLESS you are attempting to get a credit line increase on one of those other credit cards. When you use your credit card, depending on the timing of credit bureau reporting, your credit score may be negatively impacted if you have a balance (whether paid off in full each month or not) that is equal or greater than 30% of the card's credit line. In this case, the score may have been impacted enough where the other credit card company may not grant a credit limit increase.


If you are specified as an authorized user on a credit card account that is not a joint account can your credit score increase?

No, only the primary cardholder's credit score is affected.


How many points will your score go up by paying off credit card?

15


How many credit points a month do you get using a secure credit card and paying on time?

You don't get monthly points, it doesn't work like that, the only way to increase your score is to have good positive open trade lines with no lates and as they get history and age on them your score will increase as time goes on.


What are some ways to clean up a credit score?

Some ways to clean up a credit score is to start paying bills on time, reduce credit card debt, and open a bank account. Those are the best ways to clean up a credit card score.


How would one go about finding their credit score?

You can find your credit card score in a number of ways. You can write to a credit agency, supplying evidence of who you are and paying a small fee. Or you can also now apply for a credit score online.


If you pay off a credit card balance is it bad your my credit report?

not always, depends on your credit situation. keep using and paying off your credit card every month to improve your credit score


Can paying off a credit card damage your credit score?

No, only if the account is a paid closed account. What affects your score is utilization of your credit limit, which should only be about 25 to 35%.


You have 2 credit cards that are almost maxed out Will your credit score raise if you pay half of the balance of each of them or should you pay one completely off and still have the balance on the oth?

Your score is like a report card, it takes time. Payment updates, opening a new account or closing an account could cause your score to fluctuate. If you plan on keeping the card after paying it off, this could help increase your score because it will show that you have an available line of credit. Having bank card accounts with a valid credit limit can have a positive impact on your credit score.


How may a credit card negatively impact an individual credit history?

A credit card may negatively impact a credit history in a few ways. 1. Paying your credit card late will hurt your credit. 2. Keeping a high balance on your credit cards will lower a credit score. 3. Going over the credit limit will negatively impact your credit score.


Is spending a few hundred dollars on a credit card enough to cause a lower credit score?

As long as make the correct payments it should actually increase your credit score.


How can I improve my changes of getting approved for a credit card?

You can start by never paying over your limit on a credit card. You will have a good credit score that way and will always be approved. If you do go over your limit and fail to pay back the debt in time, your credit score will get worst.


After paying off a credit card balance how much does your credit score go up?

it will go up by 10 to 50 points depending on the amount owned and cancelled. You can further improve it by continuing to use the credit card, and paying the balance in time.


If you eliminate all credit card debts will this increase your credit score immediately?

No, it will not. You should have a mix of different types of credit, such as credit card, mortgage, car loan. Credit card debt should be kept at least at 50% of your balance. 30% is best. An example is keeping a $3,000 balance on a card with a $10,000 credit limit. It is helpful to have a longer history of paying on debts, and it is good to have a minimum of 3 credit cards, all under the 30% limit. When you check your FICO score, look to see if the credit accounts that are open list the credit limit. If not you want to report that limit to the credit scoring company (Experian, Equifax, Transunion). It sounds crazy, but eliminating your debt and just paying the total balance in full each month will not increase your credit score. The credit scoring companies want to see a variety of debt, as well as management of that debt, i.e. reasonable balances, and regular payment on that debt.


Will not paying for items that you won on Ebay affect your credit score if anything?

No it won't affect your credit report unless you happened to charge the item to a credit card and not pay for the item once charged to the card.


If you have low credit will getting a credit card and paying it on time up your credit score?

Yes, by taking out a credit card, charging an item(s) to the card and paying at least the minium balances due on time, your credit score will eventually improve. Just be sure that you can afford the monthly payments and mail it in enough time so its received on time. On way to ensure timely payment is to authorize the credit card to deduct the minimum amount (or more if you desires) electronically each month.


What is Vanquis and can they help with credit scores?

vanquis is basicly a credit card company that will give you a credit card regardless of your credit score. you will be able to get a credit card and will allow you to get a better credit score


Does your credit score go down if you do not use your credit card?

Generally, no, your credit score will not be reduced if a credit card that you own is not being used. You don't, however, want to cancel the card - cancelling a credit card (whether voluntary or forced by the issuer) does reduce your credit score.


If you pay off your credit card balance monthly will this help your credit and are you paying no interest?

Paying off you credit card balance helps you, yourself the most. but according the the fico score they like to see a small balance, for some reason its not good to pay off a card totaly, I have never understood this.