How much will my credit score go up?
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Hi. I live in Chicago, and plan to take an auto loan in a few months from now.
My current score is 540, which is pretty low. I’m not sure if my application will be approved, and even if it does – my terms will probably be very bad.
My credit report includes some medical bills, one judgement and 4 credit cards.
I need desperately to raise my credit score. I was wondering how much my credit score will jump up after I pay the stuff off?
Tnx
Patricia
Raising credit score takes time
Your credit score IS very low. Most chances that you’ll not be approved, or get very low terms. That will make your loan very expensive.
As to raising your credit score – there is no magic pill. Most people fail to understand that credit score is a lot about history, and you can’t fix that overnight.The only one thing that you can fix immediately is to reduce your credit, so that your credit utilization is below 35%.
Total debt utilization counts for 30% of your FICO score, so reducing it will raise your score.
How ever, as for your judgement and medical bills (are you late on them?), this stuff remain on your credit report for a long time, and while it’s there it lowers your FICO score.
Even if you pay everything off – the negative entries about ever being late remains on your credit report.
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