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Best course of action for lower than would like score?

New Visitor

Best course of action for lower than would like score?

Hi,
I am new to the game.  Just got my Fico score, much lower than I would like.  Lets just say that I have made some mistakes in the past (including late payments).  I am working to correct that now.  I have around 9,000 in credit card debt I am working on paying off as well.  When I did the score simulator, it said if I paid everything off in the next 24 months, my score jumps significantly.  I will be getting some addiontional money soon and I was planning on paying it all off at that time.  However, should I pay a portion off a little bit at a time?  What looks better-paying it all off at the same time or paying a portion over time?
 
Any advice is greatly appreciated!
Message 1 of 6
5 REPLIES
Senior Contributor

Re: Best course of action for lower than would like score?

Hi girl. Welcome to the forum. There's a wealth of information here for you to help you with your credit needs.

I was not in a position to pay all my cc's down to reasonable levels all at once. It took me about 3 months. But when I did, my scores zoomed up from 521 to 671, over a 5 month period.
"Never ever, ever be late. Never" (FUTR)
Message 2 of 6
Frequent Contributor

Re: Best course of action for lower than would like score?

I would say it doesn't matter whether you break up the payments or pay it in a lump sum.  As soon as they creditors report your balance, you're going to see a huge boost.  You'll see a boost no matter how you attack your debt.  Over time, or immediately.  You'll get the same result, in my opinion.
Time is credit's best friend...it can heal any wound.
Message 3 of 6
Moderator Emeritus

Re: Best course of action for lower than would like score?

The only reason I might recommend to pay in big chucks instead of all at once is if you have had high UTL for a while and might be subject to a CLD -



TheCynicalOne wrote:
I would say it doesn't matter whether you break up the payments or pay it in a lump sum. As soon as they creditors report your balance, you're going to see a huge boost. You'll see a boost no matter how you attack your debt. Over time, or immediately. You'll get the same result, in my opinion.



Message 4 of 6
Moderator Emerita

Re: Best course of action for lower than would like score?

I get that on my "best course" sim as well, and I refuse to believe that I am supposed to draw things out over 2 years. I once got this when I had a total balance of $317, I think it was.

I think it means pay it down and keep it down. In other words, get the util low, keep it low, and behave ourselves. Nothing else is remotely logical.
* 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 5 of 6
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New Contributor

Re: Best course of action for lower than would like score?

Don't forget - the "Best Score Sim" of paying down over 24 months takes into account the lower utilization, and the additional aging and timely reports.  My guess is the sim (if you could do multiple components to scenario) would look the same if you specified - paying it all off, and paying everything on time for 24 months.
Message 6 of 6