How many points will my credit score go up if I pay my credit card in full each month?
My credit score is so low and I managed to get 2 of the worst credit cards, but I'm just using them to raise my score. If I pay off both of them in full each month how much will my score go up? Thanks.
Public Comments
- First, as long as you make at least the minimum payment by the due date, the credit card company will report that you paid on time. Paying the balance in full each month doesn't do anything special to increase your score, anymore than carrying a balance. Of course, paying in full each month means you don't pay interest -- definitely the smart thing to do. You don't get a certain number of points per month. That's not the way credit scores work. You will need at least 24 months of consistent, on time payments to see improvement in your score. The longer the good payment history, the better the score. Good credit is built up over years, not months.
- One of the larger components of your credit score is your amount of debt compared to your total credit limit. You should try to keep that ratio low, so in other words, not carrying a balance can help your credit score. Your score might improve a little bit from this tactic (maybe 50-100 points) However, if you have a history of missing payments, that will weigh much more on your score, and the only thing you can do about that is wait for them to age and eventually drop off your report (7 years). When I was young and irresponsible my credit score was in the low 500s; that was 10 years ago. After paying my bills for 10 years, my score is in the upper 700s. It takes time.
