How much will my credit score go up if I pay off all my debt?

+1 vote
asked Jul 21, 2018 in Credit by beemee (300 points)
How much will my credit score go up if I pay off all my debt?

If I were to pay off all my debt how much would my credit score go up and improve?

1 Answer

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answered Jul 21, 2018 by Calix49 (300 points)
Wanting to pay off your debt that you owe is a great thing and you should pay off all your debt if you can do so.

Because being debt free is a wonderful thing knowing that you don't owe anyone anything except for utility bills and other essential things you need to pay.

But do know that paying off your debt in full doesn't mean you'll automatically see your credit score and credit rating improve however it will improve after awhile.

Even though you pay off your debt in full you may still need to get a credit repair agency involved to have them help remove any negative remarks that might be on your credit rating.

But if you have open loans your credit score might improve a little bit after paying the open loans off but it's much better to keep the loans open and continue to make the on time payments each month since the longer you have the loan account or other credit account open the better it will be to show that you pay your loans on time and are a good credit risk.

Closing an open good standing loan too soon can actually harm your credit rating so if possible keep the loan open for the full term to see a better credit rating and credit score.

Same goes for auto loans keep the auto loan open for the full term so it will be reported on your credit rating and help to improve your credit score.

The open accounts with on time payments that you've never missed show other lenders when they look up your credit score that you're good and responsible with credit and your credit rating will also improve overtime.

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