Do you know how much your credit score goes up once you pay something off?

Question

Is it a specific amount or does it vary by balance?

Answer 1

Depends on how much the thing you paid off is.

Answer 2

It varies by so many things you really can't tell.  Paying something off would effect your revolving balance and increase your score but the # of cards you have and how many late payments you have had are what really pull your score down.  To get the best score pay on time all the time, have a few thousand dollar revolving balance, and only have 3 or 4 credit cards.  Also the longer you have had a card, the better.  To answer your question, your score could go up 10-40 points, I would guess.  Do your freecreditreport.com and see how it looks.

Answer 3

Don't know. I do know that if you don't borrow more money and make payments on time. Your score will start dropping. You see, you have to stay in debt to keep your score high. The whole credit card fico score thing was designed by banks to get and keep people in debt.

Credit cards are the financial worlds cigarette and "building credit" is the biggest joke of the 21st century.

Answer 4

It depends on several factors; how large the loan was, and your current score and other issues on your credit. Unestablished credit (low scores with no negative history) go up faster that high credit scores which go up faster than low credit scores with poor history. More important than paying something off is making payments on time. For example if you pay something off but were late in half your payments, that account is more likely to decrease your credit score than increase it, even after you pay the loan off. Paying something off won't undue the damage of a negative credit history. It does however free up your credit. By that I mean, you can now get a larger loan for something else. The interest you pay on that next loan however will depend largely on your credit score.

Everyone has the right to 1 free credit report a year. Go to annualcreditreport.com to get your free report. DO NOT go to freecreditreport.com or other sites that advertise free credit reports. Its false advertising basically. They not only charge you a fee, but continue to charge you monthly if you use their services.