Question:

How much will paying off my debt help my credit score?

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I'm 22 years-old and fresh out of college. I recently began working and earning a decent salary. During college, instead of taking out loans, I charged things such as books, gas, etc. to credit cards. I did work as a nurse extern, but it was hard to work and still try to pay for well, being alive and attending school.

Anyway, my credit score is currently 690 (scale was 550-990; used TransUnion... other score was 695 using the Vantage circle). That is a bad score to me. My freshman year of college, I had a credit score that was ranked as an A and over 800.

On my reports I've never been late, my accounts are in satisfactory condition... everything is in the green and nice.

So, I think it's the fact that I do have high balances on some of the cards that is hurting me. I had over $10,000 in credit card debt two months ago and now I've worked it down to $7,000. It should all be paid off by December.

Will paying off my debts help my credit score a lot? How quickly?

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6 ANSWERS


  1. Well, people tend to assume that paying them off it some type of combination will help speed things along. Truth is, time is the real issue here. If you have negative remarks, only time will be the fix. Now, since you don't have that, pay down your debt to credit ratio and it will improve slightly. I don't get why it is 690 if you haven't had any lates or delinquents. even if you have a heavy debt to credit ratio, as long as minimums were made on time it shouldn't have made it go down from 800. So i think there must be something bad on there. Plus, keeping the accounts open is fine. Just pay down the high-balance ones. After that, then decide what to close down officially. You don't want to rock the boat too much.


  2. Yes it will increase you credit score, I done many for the pass 5months and now I received a 19point increase. Dang! not much at all. Also the credit beuro has thier secrets, so you won't know till 3 to 6months from now. That is why they give you 1 free credit report every year. Go figure they want you pay your debt as well as they keep you thinking about it and by them making it worse then it seem, it is called a "stratagy" or mind games behing close doors no one know except them. Like your story no one know's your real debt? We can only assume.... so wait 3months to 1year to see a change.

    My Story is similar to yours. But I have a bad debt, which is now being paid off by end of July 2008. I took a loan of $10,500 for school and a Auto Loan for $10000 total of $20,000 in debt.

    Do to job lost, finacial difficultys, i was unable to pay anything for 5yrs. Guess what, My score dropped from 740 to 595.

    All I have to say is only time will heal your credit score, but unlike me I have to work alittle more to get back on track.

    After paying off my last debts this comming Aug 1st. I can tell my credit score will be at 640. Maybe If i am lucky I get 30points a piece puts my at 660. Either way there is no fast solution. Put it this way If you took time to damage it it will take it time to heal...I done that just welll.

    I don't care no more, as long as I have a decent income, a car, real cash in hand to toss at the dealers face, or a 20 percent down on a house.....Im all good.

    After reading your story, looks like  you have a excellent track record for your debt. Though I wouldn't worry much, at least your above advarage from the rest of us low or bad credit guys. If you like to see a prediction of your credit score I suggest trying out this site out. It will make you feel alot better.

    http://www.whatsmyscore.org/estimator/

    Bluff a little acts if you already pay off that $7000 monkey that is on your back hammering to send a check lol. I bet you will score very high.

    P.S Why delete good standing credit cards, when it was the intity that got you a good score?  I rather just leave it on your record for good looks.

    Good luck, and take care.

  3. High balances do affect your credit score. Before closing any accounts you should read the article listed below that explains credit scores in detail.

  4. 720 is the average score in the US.   Yours will go above that when the $7,000 is paid in full.  You can keep the other cards open to see if you need them.  You must have paid something late at one time to drop under 700.  I'm not saying this to be mean.  It usually won't drop under 700 just for a high balance.

  5. none, the credit reporting agencies are a joke, that is why the wave of lawsuits is on the horizon, i had negative things fall off my credit report and my score went down, go figure!

  6. Yes paying off debts will positively affect your credit score. How quickly cannot be determined. If you find difficulty paying off your debts you can go for a debt consolidation company. They can help you to pay off your debts by managing it well.

    Here is the source of a debt consolidation company named http://ezconsolidation.com for your reference.

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