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Question By
tuckercharns

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Debt consolidation nearly done but credit rating sinking?
I have gone through debt consolidation/pay off with a non-profit. I got it together, made monthly payments for nearly 5 years and am almost done. Got a secured loan for a used car last year and haven't missed one payment. As I pay off the credit cards/lines of credit, my credit rating is sinking as my available credit (what I owe, really) is going down. How can I increase my credit rating as I pay down and close out these old accounts?

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Top Contributor
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You need to replace the old bad accounts with good accounts.  But make sure you don't over-extend yourself.  If you don't have any open credit cards, then I suggest getting a secured credit card that reports to all three bureaus and keep the utilization under 30%.  Go to www.creditcards.com and you can compare them all for the best deal.  Try to be patient (sounds like that is not a problem for you) 'cause it will take a few months for the good credit to impact your scores.  Congratulations on overcoming your debt and keep up the great work!

Reply by
tuckercharns

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Thanks for your time. It is much appreciated.

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