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how quickly does paying off credit cards help

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Anonymous
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how quickly does paying off credit cards help

I currently have a credit score of 591 because I recently missed a payment.  I currently owe about 6500 in revolving credit.  I'm hoping to be able to get my score up enough to buy a house by late next spring or early summer.  If I'm able to pay off all of my revolving credit within the next 6 months and have no late payments at all, how will that affect my score and how quickly will that take effect?  I hear all of the stuff going on about buying a house now and how hard it is to get a loan, what does your score need to be to qualify for a home loan?
 
Thanks!
Message 1 of 20
19 REPLIES 19
Anonymous
Not applicable

Re: how quickly does paying off credit cards help

Paying down revolving debt has a HUGE affect on your FICO.

GW that late.
Message 2 of 20
haulingthescoreup
Moderator Emerita

Re: how quickly does paying off credit cards help

Pay them down as fast as you can. Each time a CCC reports your new lower balance and it gets posted on a report, your score will rise, as long as nothing else bad happens. The more you lower your balance each time, the higher the score bump.

You lost 50 points with that late. GW as Timothy says, and NEVER be late again. That's the worst short-term killer there is.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 3 of 20
Anonymous
Not applicable

Re: how quickly does paying off credit cards help

I'm new here, what does GW mean?
Message 4 of 20
John060675
Valued Contributor

Re: how quickly does paying off credit cards help

Goodwill letter.  It asks a company to remove baddies from a report.  Search GW up above to find sample letters.

Starting Score: 583 EQ, 612 EX, 569 TU
Current Score: 658 EQ, 648 EX, 618 TU
Goal Score: 720 EQ, 720 EX, 720 TU


Take the myFICO Fitness Challenge
Message 5 of 20
Anonymous
Not applicable

Re: how quickly does paying off credit cards help

Thanks for the insight guys! Smiley Happy
Message 6 of 20
haulingthescoreup
Moderator Emerita

Re: how quickly does paying off credit cards help


@Anonymous wrote:
I'm new here, what does GW mean?


It will really help you if you'll take the time--lots of time!--to read through the posts that are clumped at the top of each forum. A lot of them give a great basic overview of the whole credit minefield, and they might save you from some false starts.

Doubtless Tuscani will soon be here with his welcome and link to Credit Scoring 101. (Hi, Tusc!) It says "start here," and that's a great idea.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 7 of 20
fused
Moderator Emeritus

Re: how quickly does paying off credit cards help

Your teacher Tuscani is not coming in today, I'm your substitute teacher and here is my lesson plan (courtesy of Tuscani and Noah).Smiley Tongue
 


Message Edited by fused on 10-02-2007 06:05 PM
Message 8 of 20
Anonymous
Not applicable

Re: how quickly does paying off credit cards help

I paid off my discover card to a zero balance.  It had a huge impact on my credit score. my TU score went up from 678 to 719!!!!!!!!!!!!!!  Good luck to you.
 
 
loveninewest
 
 
Message 9 of 20
Anonymous
Not applicable

Re: how quickly does paying off credit cards help

Timothy - I was told it is better to pay them off a bit slower to demonstrate a pattern of on-time payments.  Do you think it's best to just pay them off totally?
Message 10 of 20
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