Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
JETSTREAMChatmn

0 Contributions
0 People Helped
I have a bad credit score of 500. If all of my accounts are closed and paid off will my credit go up
If I pay off all my debt ($1800) in one month, and get a credit card to use responsibly, will my credit go up?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
7374 Contributions
3813 People Helped

Paid? YES!! Closed? NO!!

Paying all accounts is good for your credit score.  Closing them is not, because each account has a credit limit, and the higher your total of available credit, the better.  Closing removes some available credit from your total. Also, the longer you have had credit, the better.  So, if you close accounts, they aren't getting any older and that hurts your score.

Your score may not go up immediately after paying off the accounts, especially if they have late payments showing, but it will go up sooner than if you didn't pay them.  A credit card may help, but with that low credit score, you may have to start with a secured card, then build from there.  Can be done because I did it.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.