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Old 12-02-2007, 12:27 PM
 
Location: Highland Creek, NC
704 posts, read 1,241,042 times
Reputation: 299
Thumbs up More direct steps to improve FICO score?

I paid off all of my credit cards in November, as well as 1 of my 2 car loans. When would I see my FICO improve? How long does it take? Also- now that they are paid off, I dont plan on using them anymore (the cards- I still need to use the car). I know not to close them, but is there anything negative about leaving them unused? Thanks!
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Old 12-02-2007, 12:34 PM
 
Location: Up above the world so high!
44,320 posts, read 54,771,183 times
Reputation: 37045
Quote:
Originally Posted by mikealialex View Post
I paid off all of my credit cards in November, as well as 1 of my 2 car loans. When would I see my FICO improve? How long does it take? Also- now that they are paid off, I dont plan on using them anymore (the cards- I still need to use the car). I know not to close them, but is there anything negative about leaving them unused? Thanks!
Not an expert, so hopefully some of our financial wiz's here will chime in. BUT, while you do want to close some of those accounts, plan on keeping 2 or 3 that you do use and pay off IMMEDIATELY every so often. This wil definitely help your score. Not having a card or not using a card you have WILL hurt you.
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Old 12-02-2007, 01:02 PM
 
Location: Charlotte, North Carolina
185 posts, read 413,449 times
Reputation: 62
Quote:
Originally Posted by mikealialex View Post
I paid off all of my credit cards in November, as well as 1 of my 2 car loans. When would I see my FICO improve? How long does it take? Also- now that they are paid off, I dont plan on using them anymore (the cards- I still need to use the car). I know not to close them, but is there anything negative about leaving them unused? Thanks!
I'm not sure about length of time for FICO to show improvement , but from what I understand about credit cards, it is a good thing to keep them open and unused. When a credit check is done I think it's actually to your benefit.

1) Not only did you have credit payments to make , you paid it off !
2) Your credit line is open and not being used shows you need not live off credit! (which must drive the creditors insane)

Thats why they say if possible, never close your oldest account.

Wait till you see all the offers that roll in for better rates etc. you might opt to take advantage of those and like Loves stated..... pay off right away.
(Disclaimer: I'm not the financial wiz Loves was hoping for)
Where is SUSIE ORMAND when ya need her?
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Old 12-02-2007, 01:26 PM
 
Location: Charlotte,NC, US, North America, Earth, Alpha Quadrant,Milky Way Galaxy
3,275 posts, read 4,538,642 times
Reputation: 1616
Personally I think the whole credit/fico system is such a scacm. The best credit is no credit

Anyway, you can see your credit inch up month to month. You can watch it using one of the monitoring services like myfico (there are others i happen to use that one). Probably one of the best things to prevent it from going down is prevent inquiries. If someone must look at your credit say your financing a car, or something, give them a recent print out *before* hand and once you are comfortable with the terms they give you, let them pull it.
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Old 12-02-2007, 01:27 PM
 
Location: South Charlotte
1,395 posts, read 3,783,973 times
Reputation: 454
From everything I have learned about a credit account if you close the account you will lose all of those "1's" or positive payment/history marks. This in effect will decrease your credit or fico score.
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Old 12-02-2007, 01:43 PM
 
Location: Highland Creek, NC
704 posts, read 1,241,042 times
Reputation: 299
Yes, I heard also not to close my accounts. I am wondering though how quickly I will see the benefit of paying off all of my accounts. The most negative mark on my report was my high balances.
I plan on buying in June, so I am counting on my score improving to the 700's before then.
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Old 12-02-2007, 01:47 PM
 
Location: Up above the world so high!
44,320 posts, read 54,771,183 times
Reputation: 37045
Quote:
Originally Posted by mikealialex View Post
Yes, I heard also not to close my accounts. I am wondering though how quickly I will see the benefit of paying off all of my accounts. The most negative mark on my report was my high balances.
I plan on buying in June, so I am counting on my score improving to the 700's before then.
I do think you can do it by June. I had a similar situation some years back and was impressed with what I could do in 8-12 months
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Old 12-02-2007, 01:48 PM
 
Location: Up above the world so high!
44,320 posts, read 54,771,183 times
Reputation: 37045
Quote:
Originally Posted by mikealialex View Post
Yes, I heard also not to close my accounts. I am wondering though how quickly I will see the benefit of paying off all of my accounts. The most negative mark on my report was my high balances.
I plan on buying in June, so I am counting on my score improving to the 700's before then.
Also, just another tip...between now and June do not take out ANY credit anywhere. That means store cards like Kohl's, Sears, Rooms to Go, etc... Every time you do this you hurt your credit score even though it seems like a harmless thing to do.
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Old 12-02-2007, 04:04 PM
 
Location: Tucson
42,846 posts, read 53,316,990 times
Reputation: 22748
Quote:
Originally Posted by mikealialex View Post
I paid off all of my credit cards in November, as well as 1 of my 2 car loans. When would I see my FICO improve? How long does it take? Also- now that they are paid off, I dont plan on using them anymore (the cards- I still need to use the car). I know not to close them, but is there anything negative about leaving them unused? Thanks!
Improving Your FICO Credit Score - Tips from myFICO.com
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Old 12-02-2007, 04:17 PM
 
56,251 posts, read 28,057,614 times
Reputation: 7079
Quote:
Originally Posted by mikealialex View Post
I paid off all of my credit cards in November, as well as 1 of my 2 car loans. When would I see my FICO improve? How long does it take? Also- now that they are paid off, I dont plan on using them anymore (the cards- I still need to use the car). I know not to close them, but is there anything negative about leaving them unused? Thanks!
Depending on the number of cards you have, its not necessarily bad to close some.. (its so hard to decide to close or not to).

Just if you do close a few.. close the newest ones opened because the oldest ones have a pay history attached.
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