Paying off Debt

[velo90]

Does anyone know?.... If I pay off all of my debt (approx. $8000), what potential increase in my credit score can I see. I understand that the numbers can vary but does anyone know why it might? Whouldn't x dollars equal x points in all circumstances? Thanks, Eric

[Tuscani]

What kind of debt? Are any collections or judgements?

[velo90]

It's all credit card debt. I had a medical collection paid several years ago and it's still hurting. Thank you for your reply. Eric

[Tuscani]

What is your current utilization?

[velo90]

Sorry, What do you mean by "current Utilization"? -Eric

[Anonymous]

Percent of the CC in use. For example, $1000 limit, $850 balance, is 85% util.

[velo90]

Sorry it's taken so long to respond. It took me awhile to find out the info you required. My current utilization is 55.85%. If I pay off my entire credit card debt (all installment loans), what type of score increase can I expect? What if all of the cards are closed due to CCCS? Thanks so much.

[Anonymous]

Paying your debt down from 56 percent to between 1 and 9 percent will give you the biggest bump.

However, if you're working with CCCS, I strongly encourage you to dump them. Have you already closed all of your CCs?

[velo90]

I believe that the CC's are automatically closed out when you sign up with CCCS. I sent the check to them for the payoff so I cannot keep the balances at 1-9%. Any thoughts on score increase?

[Anonymous]

I had a slightly different situation, but when I got the utilization down, I jumped about 50 points.  Good luck.