Whats the best way to increase my credit score?
My current score is a horrible 590. I have $7400 credit card debt, which I am able to currently pay off to zero. Will a zero balance significantly increase my score?
- 1 decade agoFavorite Answer
Payment history is the single most important factor in determining your credit score, making up 35% of the total. Since recent history carries more weight than what happened five years ago, getting in the habit of making on-time payments is an incredibly powerful way to start rebuilding your credit rating.
Likewise, delinquent payments can devastate your score. Missing even one payment can knock 50 to 100 points off a good score. Skipping payments for a single month on all your bills can lower your number from a respectable 707 to the dismal range of 562 to 632, according to the credit score estimator at Bankrate.com. The simulator lets you estimate your credit score and see the impact of various credit behaviors on your score.
Tip: I've found the best way to avoid late payments is to put as many of our bills on automatic as possible. Our mortgage lender, utilities and phone service providers are happy to take their payments directly from our checking account each month. Online bill-payment systems are another way to ease monthly check-writing chore, and many provide reminder services so you don't forget a bill. The latest versions of Quicken and Money have good reminder features, as well.
- charlie mLv 41 decade ago
Beki and Judy are right! Another tip to get higher scores is to open new credit card accounts but never or rarely use them. And get the highest amount of $$$ on them that they will give you. The more credit you have available the better your score, generally, will be. The secret is to have all these approved and open accounts with nice high $$$ ceilings available so the 3 credit bureaus can see 'em. This will help you FICO numbers, just don't run up balances!
- Anonymous1 decade ago
Pay those balances off and watch your score skyrocket.
It is 100% myth that carrying balances increases your scores.
Something old ladies will tell you.
The opposite is quite true.
Use your card for things you need like food or gas, and pay it in full each month.
Never pay a penny interest.