Increaing my credit score

[pauzies24]

First off let me say this board is great. I'm glad to see that they're are lots of people in the same boat as me. I've recently started working on my credit and seen it fluxuiate from high to low between dropping as many as 47 points one week and increasing 25 points couple weeks later. As it stands right now I am at 551 and my goal is to increase it 100 points in a short matter of time. I will be paying off a CA for a one credit card that I had closed and couldn't make payments on. I have 3 low limit credit cards that I recently paid down for all to show a $0 balance. The only other thing I have on my report is student loans totalling 22,000 which are deferred until 2012.

Question 1. If I decided to make payments to deferred accounts before 2012 will it hurt or help my score?

                   1a will my account become active and a payment be expected every month. As of right now 1st payment isn't due until 11/2102.

Question 2. Does not using your cards with $0 balance help increase your score each month or should I charge something then pay it off in full to help booster credit.

Question 3. Is it better to have some debt on your report or try paying everything of and just having low balances on any active CC's?

Thanks,

Pauzies24  Current EQ 551

                      Goal (short term) 650 (LT) 740

[llecs]

Welcome to the forums!

1) Making payments on a deferred SL won't likely have any impact on your FICO score. I don't know how payments will impact the deferred status. You might want to contact your lender first or read your agreement. There are some on the Student Loans board who might be able to help too.

2) FICO scores on your CC utilization as opposed to your usage levels. It's OK to have $0 balances report, just use it every 3-4 months to keep them from closing it. Once you use it, even if it is just for $1, then pay it in full and remain debt free.

3) For max points, get all but one CC to report $0 and get the remaining to report a balance of under 9% of the reported CL. However, utilization is a snapshot in time and going over or keeping all $0 balances won't have any permanent negative effect, only short-term or until the balances go back in check.