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bmarie101

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Please! how can i improve my credit?
I have a credit score of 600. I owe $2,000 dollars on one credit card and $1,500 on another. I also have a car loan with $10,000 still owed. Will paying off my credit cards help my score? I really need to improve my score and an a timely manner if it's at all possible. Honestly I'm new to this and could use any help I can get.

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Top Contributor
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Yes, paying cards good idea.

Since you're new to this "credit game" (and it is kind of like a crazy game), it's good to get helpful advice.

First, you're carrying a substantial balance on the credit cards, thus paying way too much in interest.  I consider having to pay any interest to be too much when a credit card can be a money saver by letting us take advantage of REAL sales on some items we want.  So getting those paid off is important.  The ultimate goal is to keep your usage of credit cards at or below 20% (of the total credit limit) and paying the total balance due as shown on the monthly card statement when it comes in.  Just don't go keeping track of all charges for the month and paying THAT when the bill says less.  You won't be paying interest when you follow this advice.

Do check your credit reports once a year every year.  It is free and only you can keep the information on your credit reports up to date.  Go to annualcreditreport.com and get copies of all 3 credit reports.  Look them over very carefully and file disputes on every bit of WRONG information (not my account, wrong address, etc) with the credit bureau reporting them.  They then have to investigate and either verify or delete the disputed items.

Use the Financial Tools on this site, such as the Credit Simulator to help you see what the effects of certain financial decisions MIGHT be without having found out the hard way that it would not have been a good idea.  Or you could find out something is a good idea and you can go ahead with it.  Use the tools to help you build a better financial future.  And you can do it!!

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