Any sharpies out there who would comment, please, on a credit score raising strategy? I know if you pay off credit card balances, you NORMALLY get a big boost. After that, should you idle the cards for a few months and then charge them up a certain percentage and pay off again? Someone once told me to carry a 40% LOC for a few months and then pay off in full and repeat the process. Since I am now paying down my balances in full for the first time, I don't know what to expect in my score.
For the quickest, surest way to raise scores, you are exactly right - paying credit card balances down will yield the quickest increase. I paid my credit cards from roughly 50 % available to 90% and my scores jumed by over 40 pts. I don't think running the cards up and then paying them down does anything for your score. It will help with the creditors maybe.
LKH - do you mind saying what happened to your score after you hit 90% available credit? Did you let your cards idle? Has your score gone up since you paid?
Well, I incorrectly spelled jump above. My scores went up by over 40 pts. when I payed down to 10% used. No, I did not let them sit idle. I usually pay in full each month and if I can't one month, I pay as much as I can, then pay if off the next. I have gotten steady credit line increases along the way.
