Houston Credit Repair experts at Impeccable Credit Services explain how paying off debt can change your credit.
What do I️ Pay?
If you are wanting to increase your score to its full potential work on paying down revolving accounts. Installment loans are worth less than revolving credit. An installment loan can be a house, car, furniture, even a regular loan. Revolving accounts are credit cards. Paying off collections do not increase your credit score. Often times by paying off a collection can drop your credit score. Make sure you use your credit to your advantage and do not close an account once it is paid off. This does not mean do not pay down your other accounts, but if you are trying to boost your credit work on the revolving accounts to do so and installment loans after. Paying off a car or home does not boost your score as much as you might think.
Will it Help My Credit?
Paying off debt can help or hurt your credit. It is important to pay your debt, but keep in mind that some things help your credit score more than others.People who have 800+ credit scores have their credit cards paid down to a $0.00 balance. Utilization typically is good to keep the card open, but does not need to be 10-20% at all times. Keep in mind that your credit is a history report and it is wise to have extensive positive history. Although it can be annoying to check on the open accounts every month to make sure you do not get any fees or additional charges it does help build your credit score over time. Do not depend on auto draft. It is prone to error and an be the reason of a late payment if it is not monitored. If you have negative items or need help with your debt management consider contacting a credit professional.
Houston Credit Repair
Impeccable Credit Services has been in business for 18 years helping people across the United States! Our goal is to educate others on credit in order to achieve financial success. Impeccable credit has been recognized as the best credit repair company in Miami, Houston, Fort Lauderdale, Dallas, Austin and Orlando. Our motto is repairing credit, changing lives. If you have any questions regarding credit repair or increasing your credit score please feel free to give us a call 713-378-1500.