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Paying debt off does not automatically raise your credit score.
it depends what % of your credit lines you were using.
One of the fastest ways to raise your score is to have reasonable debt and make minimum payments on time.
Your credit score is NOT an idication of how much debt you have.
Paying debt off does not automatically raise your credit score.
anywhere from 4 months to 2 years depending on what company it is and how soon they report it paid.
Common is correct to an extent. Your score doesn't necessarily go up after paying off debt, depnding on what kind of debt it is. I'll give a breakdown of what makes up your score:
1. Payment history- 35%
2. Total debt owed vs. Available credit - 30%
3. Lenth of time establishing credit 15%
4. Types of credit established 10%
5. Inquiries and New Accounts 10%
As you can see, payment history and total debt vs. available credit are the 2 most important factors that make up your score. Now paying off current debt like active credit cards could possibly raise your score because of the #2. Now let's say for instance you were paying off delinquent debt, that may not raise your score as much as you would expect because of #1, the negative payment history since it would be delinquent. I wouldn't expect it to go up as much as you think. If you have a credit monitoring service, I would keep an eye on your reports after a few months to see what happens.
Paying off debt, unless you are behind and in the hands of collections, may not zoom your scores. By paying all bills on time every time your scores will go up. Maybe not fast, but they will go up. Carrying debt, i.e. balances on credit cards, is not a bad thing. Just don't get stuck making the minimum payment every month. ALWAYS pay on time or even early.
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