I paid off my credit cards back in March. I mean mid-statement, not-a-penny-outstanding, paid them off.
I didn't post about it at the time because I didn't think it was that big of a deal. It was just nice--relief--to pay off all the vacations and furniture and bar tabs I couldn't afford.
I had no idea it would bump my credit score up this much! 70 points!
This picture is the Experian FICO tracker from my Washington Mutual card. I don't use this card anymore because of a lousy customer service experience, but it's nice to easily see my FICO free. I wouldn't recommend this card, but the FICO scores are a nice feature if you already have it.
4 comments:
Wow that will come in handy on any potential home mortgages, auto insurance, health insurance, and property insurance.
Keep up the good work!
I'm aiming for a FICO score of 0. The only thing that determines FICO score is debt. You have to establish credit, use it frequently, show debt to credit utilization, and your payment history. I've been there and done that, and I'm not going back. Do you know the emotion involved in cutting up a credit card? Try it if you think I'm not serious.
I do think it's very important to make sure your debt stays current and you don't default on anything. There's a huge difference between no credit and bad credit. By paying off my debt it will free my cash flow to build wealth. With wealth you can do anything, using credit you're at the mercy of the FICO score.
Dedicated: You don't need credit for any of the things you just mentioned. Look up manual underwriting regarding a mortgage.
Oh! I did that too - my cc's are all at 0, but it's my huge student loan and other loan outstanding that's bringing it down..
Congratulations on the payoff and for the big increase in your credit score :-)
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