Question:
suppose I dont make any other debt in that period
Answers:
Hi,
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That's impossible to answer without viewing your credit report. You are on the right track though. Becoming debt free is the first step to building great credit.
Perfect is a realitive term, and having no debt and no payments will not raise your score. To obtain a perfect(900) score, you would need debt, and a lot of it, that you pay each month, but not be maxed on your debt. Say you have 40k in available credit, they want to see you with about 10k in debt that you make in regular payments. Secured loans(houses/cars) are much better than unsecured(credit cards). If you paid off all your debt and had no lines of credit, eventually your score would drop to 0.
As long as you let it; you can speed it up with credit repair though I don't recommend paying for a professional service. I used a kit I found online with good results. Good luck.
YOU cant have a PERFECT score, but you can build your score.. here are some things to remember ...
It is impotant to remember that your FICO is made up of a percantage of things
35% = Making ONTIME payments, even if it is the MINNIUM!
Mail it in a week early!
30%= debt ( monies charged, loans..) VS. What amount of credit is actually available to you. The smaller debt and bigger credit is what you are aiming for.
15%= Length of credit history. Having accounts open years ago, actually helps sometimes. Unpaid ones could potentially help also, it is establishing how long you have been around , getting credit. Shows them you have a history. So dont go cancelling older cards... that would erase some of your history , actually damaging your score.
10% = New accounts and inquires on your credit.
Obviously more inquiries lowers your score, but New lines of credit help raise it.
10% A good mix or balance on the types of loans and credit you have. ( RE: Home , car, credit, departmant store)
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