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Is paying off debts on your credit report the best way to fix credit?
Wiki User
∙ 12y ago
Yes and no.
First, paying your debts is a good thing. However, do so in a manner that allows you to keep current on your rent, utilities and so on. They count and the longer you maintain a good payment history, the better your scores will look.
To pay off bad debt, pay the highest interest bills off first. If you choose to consolidate into one account, be careful! Do not use a home line of credit. Watch out for interest rates that increase to a higher rate than you already have. Also, if the debt has been charged off, and/or is more than several years old, leave it alone. You do not want to awaken zombie collection agencies.
If figuring this out is scary, do go to a non-profit credit agency for advice and then take it. You may need to really cut back on expenses or get a second job to pay things off faster. In the end, life out of debt with a good FICO is much easier.
Wiki User
∙ 12y ago
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If you pay off all debts on the credit report will your score go up?
You didn't really explain what you mean by "all debts". Paying down (or off) your revolving debt CAN cause your credit scores to increase. Paying off bad debts, like collections and charge offs will not necessarily (immediately) raise your credit score, although it helps in the long run. It depends on what you have owing and what the overall picture is. Do some research to see what would be in your best interests before you start writing checks.
If your credit card balance is close to your credit limit does that hurt your credit score?
ANSWER Paying your debts in a timely manner doesn't give your credit score best results !!!! Crazy isn't it ! This is called your balance-to-limit-ratio and counts for 30% of your credit score. In order to get best result you have to keep your balances at least 70% away from your limits.
What is the best way to win my credit report dispute?
The best way to win a credit report dispute is to show proof of your claim.
Credit card debts in estate?
The estate has to pay all of the debts, including credit cards, if possible. If the estate doesn't have the assets to do so, they distribute as best they can. If the court signs off on the distribution, the debts are ended.
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.
If you pay off all debts on the credit report will your score go up?
You didn't really explain what you mean by "all debts". Paying down (or off) your revolving debt CAN cause your credit scores to increase. Paying off bad debts, like collections and charge offs will not necessarily (immediately) raise your credit score, although it helps in the long run. It depends on what you have owing and what the overall picture is. Do some research to see what would be in your best interests before you start writing checks.
If your credit card balance is close to your credit limit does that hurt your credit score?
ANSWER Paying your debts in a timely manner doesn't give your credit score best results !!!! Crazy isn't it ! This is called your balance-to-limit-ratio and counts for 30% of your credit score. In order to get best result you have to keep your balances at least 70% away from your limits.
Know Your Credit Score When Applying for a Mortgage?
Knowing your credit report credit score is the first step in securing a mortgage. When you are looking to buy your home, having a current, up-to-date copy of your credit report is essential in securing the best rates. By reviewing your credit report prior to applying for a mortgage, you will be prepared to clear up any past debts or errors on your credit report that could prevent you from getting a mortgage loan. Your loan officer will request a copy of your credit report credit score, so don't be taken by surprise when it comes time to apply for your loan.
What is the best way to win my credit report dispute?
The best way to win a credit report dispute is to show proof of your claim.
Credit card debts in estate?
The estate has to pay all of the debts, including credit cards, if possible. If the estate doesn't have the assets to do so, they distribute as best they can. If the court signs off on the distribution, the debts are ended.
How would you quickly rebuild your credit?
Perhaps the quickest way to improve credit score is by paying off debts. This, however, is very difficult, so the best way might be to simply be more careful in the future and pay all bills on 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.
Can a collection be placed on your credit report twice?
COMPANIES TEND TO MAKE MISTAKES WHEN IT COMES TO DEBTS APPEAR ON YOUR CREDIT REPRT MORE THEN ONCE. THE BEST THING TO DO IS CONTACT THIS CREDITOR AND HAVE THEM REMOVE THE EXTRA DEBT BY REPORTING IT TO THE BUREAUS. THEY WILL INFORM YOU ON WHAT NEEDS TO BE DONE.
How do you find out if you owe any credit cards banks loans department store cards and any other debts?
The best way to determine what outstanding debt one has is to review credit reports from all three (3) credit reporting agencies. Everyone is entitled to one (1) free report per agency per year (at the website www.annualcreditreport.com, managed for the three agencies). Everyone is also entitled to a free credit report if they have been denied credit (one must ask to get the credit report).
How do you raise your credit score fast?
The best way to quickly raise your credit score is to pay off all debts. Another thing that will help it to not drop is to pay debts on time.
What is the best credit report someone can have?
Depending on which credit report company one is with, depends on the highest credit report, as they have different categories. Experian's ratings are Very Poor, Poor, Fair, Good and Excellent, so Excellent being the best credit score. Equifax reports scores between 300-900, 900 being the best credit score. There are plenty of other provider's for gaining a credit report.
What are the best keywords for a free instant credit report?
The best keywords to use for free instant credit reports are indeed the words together. Free, instant, credit and report. Other words would be credit score.
