Time if would take to Improve my Credit score? Any answer is very appreciated!?

Question

I have never had a late payment and all I want to do is pay my credit debt off, its just taking a long time becuase of the interest (From 9.9% to 18.35%) and of-course, the amount of debt. I make payments every month, and they are always more then the minimum.

If it takes me more then a year or two to get down to 30% of my huge credit debt (a little over $25,000) does that mean that it will take that long for me to get a good or decent credit score?

Thank you!!!!

Answer 1

Call consumer credit counceling at 866-889-9347 (24 hrs. a day/7 days a week. They might be able to have the companies lower the interest rate for you. Best of luck

Answer 2

You can use credit repair agency, for example this one - http://creditreport.fateback.com

They will clean lots of bad stuff from your credit report - and do it much faster than yourself, so your credit will go up fast. They also will help you refinance your debt with much lower rate. 18.35% - is really huge, you should refinance it.

Answer 3

Are these credit cards? If so, try contacting the credit card company to request a interest rate decrease.  If you have been consistent with payments and not late, they are sometimes willing to comply.  May only be 1-2% decrease, but any decrease helps. I've done it before, so I know it's possible.  Is there anyway possible for you to combine one or more of the debts, so you aren't paying all over the place.  Better to be able to focus on one large debt then several small - medium debts.  Then you can pay more on the larger debts and maybe see your over minimum (very nice) payments.  Your credit score will begin to go up as your debt comes down.  Have you looked into debt consolidation?  My sister did it and it did wonders for her credit report over the years.

Answer 4

It is true, concentrate on one card at a time...Pay it off, and then go to the next...In addition, you can pay one credit card off and then transfer the balance of another high interest card to the card you just paid off...The reason is that Credit Card Companies will give you a great deal on transferring balances, 0% a lot of the time...You just need to make sure you make the payments...

Answer 5

Everyone has basically covered everything, also try a debt consolidation company, lower interest rates, lower payments, pay more than the amount they ask for.

Answer 6

Since you have never been late, your payment history is fantastic. As soon as your debt to limit ratio drops below 30%, you will see a significant boost. And then when it goes under 10%, it will be optimal.

You have an option by the way. Try getting a personal loan from a bank or credit union for $25000 and pay them off. I can almost guarantee that the APR you pay on that loan will be ridiculously lower than 18% you are paying. Get a personal loan for 25000 for 60 months, get the money, pay the credit cards off and pay off the loan in the next 5 years. Having an installment loan of 25000 is not going to affect you as much as having a revolving 25000 debt. Infact, it will improve your scores since now you have a loan on your credit. But to qualify for a loan as such, your credit history should be clean. i.e. no negative marks, collections etc. Since your payment history is good, I think you should be able to get a personal loan for $25000, 60 month term at 8-10%. See the URL. It is just one of the banks that do this. Almost any bank will give you one.

http://www.bankofamerica.com/vehicle_and...

If you get the loan and pay the credit cards off right now, your scores will jump immediately. Revolving debt is what is calculated in determining debt to income ratio. Not montly installment loans, student loans, auto loans or mortgage! Plus you will not pay 18% APR to those sons of female dogs!

Answer 7

You will see a gradual improvement as your debt-to-limit ratio declines.

Answer 8

When it comes to credit scores there are many factors that go into it.  One of course has to do with your payments.  Now if a person pays things off right away sometimes does not go in as credit.  Credit is based on time paying.  Now paying your bills on time or earlier helps so does paying more on each payment.  That is all placed on your credit report. The other thing that people do not understand is apart of your score is the amount of money you make vs. the amount of debit you have.  The reason for this is because most people who look at your score are people lending you money.  If you have a good score this tells them you are good to pay PLUS you are able to handle more debit.  There is always a window on how they figure that out and they do take into consideration people can loose their jobs, other expenses come up etc.  So there is a certain percent of your debit and your income they allow.  

One person could pay all their bills each month but they have many debits outstanding.  While you have another person who was late on a couple payments in a lifetime but do not have tons of debit.  This person may have a better score than the person paying each payment on time.

Your score will change each month, and it can take time for it to go up but if you are working hard at getting debit down and paying on time you are on the right track.

Answer 9

Paying off the credit card debt is the fastest way to increase your score.

Instead of paying more than minimum on all your cards, concentrate every penny you can squeeze out of your budget on the highest interest rate card, while making only minimum payments on the rest.  When the highest rate card is paid off, move to the next, till they are all paid off.

Paying off the highest interest rate debt will save you money.   You may also want to find other ways to bring in more cash to throw at that debt.  Have a garage sale, collect alum cans, get a part time job.

Answer 10

you should see some improvement over time as the limit on the bank drops