Repair Credit Score

Question: If i paid off all my dept how much will my Credit Score improve?

It was 726 a few months ago. Since then i was late on 4 car payments, maxed out credit cards (and late on payments), paid my phone bills late and basically screwed up my score. I owe $1500 on my car payments and i was wondering if i were to pay what i owe on my car, pay half of what i owe on my credit cards and pay every bill on my name how much will it improve my score? Right now the score is 499

Answer: Don't pay off the car completely. Each month just pay a little more then the minimum (on time). What you should pay off completely are the credit cards.

As the months pass, the score gradually increases.

I have monitered my score for the past 2 years and have noticed how the score has changed in comparision to my activity.

The average change in the sore has been 40-50 points each month.

So I believe if you are never late on a payment again, and you don't put more then $1000 on a credit card from now til then, your score will be back in the high 700s (if not low 800s) by the end of 2009.

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