Paid off all debt....now what?

**msmoniqu** · 03-03-2009, 05:44 PM

Hello everyone I am new to this thread(or any thread) but after hours off googling I figured I needed to ask my question directly to get a clear response..My situation...

I have always been good with paying my bills on time. I only had a few, gym membership,magazine subscription....etc(nothing major).I always purchased my cars cash... nothing fancy. Then my car clonked out and I didn't have enough saved to purchase a new one so I decided to take out a car loan and the dealership said I had no credit so I had to get my mother to co-sign. Upon hearing that I knew I wanted to start building some credit. A year later I got my first credit card followed by second a few months later. I didn't realize at the time that if you were too close to your limit it would affect your credit score. Once I realized that I paid them off. My car was also paid off in 2 years...so about a year ahead of schedule. So my question is .. How come my credit score is still so low..609....The second credit card I have gives me access to my score daily and when I opened the card it was 670.. The card company also alerts me when it has changed by 20pts.(up or down) or more.This is how I found out it was dropping and why. The thing is I have paid them and it seems nothing has changed. I would like to have a score in the 7's. Not for any particular reason other than its just good to have a good score. Any advice would be greatly appreiciated. Oh and by the way I paid everything off in the same month.

**Magic69** · 03-04-2009, 07:34 PM

You have no lates, no collections, no judgements listed by any of the bureaus?

**msmoniqu** · 03-06-2009, 10:16 PM

I did have an hospital bill on there. It took about 3 months to have it removed because I have(had at the time of service) insurance. It has been about 6 months since it has been removed other than that there was nothing in the negative part of my credit report, I ordered all three with my score(from Equifax) in December 08'. I always paid the minimum balance on my 2 cc's ,never late, but I was close to the limit on both.

**Magic69** · 03-07-2009, 05:25 PM

being close to the limit on revolving credit (i.e. credit cards) will ding you. Supposedly carrying a small balance (10% of limit) is better than carrying no balance, but I've had success with just paying off my cards every month.

Good luck!

**msmoniqu** · 03-08-2009, 09:26 PM

Originally Posted by Magic69

being close to the limit on revolving credit (i.e. credit cards) will ding you. Supposedly carrying a small balance (10% of limit) is better than carrying no balance, but I've had success with just paying off my cards every month.

Good luck!

Thank you. I will try that approach.

**Magic69** · 03-11-2009, 01:54 PM

Let us know how it goes and good luck!

**msmoniqu** · 03-19-2009, 02:58 PM

I will. I'm gonna wait until June and check it again. Thanks.

**DebtGuy** · 03-25-2009, 09:37 PM

What type of time limit did it take for your credit to drop so drastically?

**msmoniqu** · 03-26-2009, 02:20 PM

I would say it was about a year after I opened the second credit card.

**msmoniqu** · 03-29-2009, 01:27 PM

Hello All
I checked my score again today( I know I said June but I was too anxious) and it went up a little to 636. Thats still rated NOT GOOD but only 25pts from being in the GOOD section. The good thing is (I think) is that both credit cards say I still owe. I paid off everything in one month. So I paid down half the balances on both cards and then two weeks later I paid off both balances in full. So I'm thinking next month, assuming I don't make any new purchases, that my score will go up again. Because they will report the new zero balance ,Right?

Another question is I do have an old phone bill on one credit report...I ordered the three in one report ...it is from 5/2002...Transunion says it should be off this month..Its been paid in full (like 3 years or so ago..I had forgotten all about it) But its still on there. Should I wait until May/June to dispute if it still appears or do I say something now? One last question if and when it is removed will it lower my score because it is listed as my oldest account..Any advice will be appreciated.

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Paid off all debt....now what?

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