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tinkerbell4dg · Posted: Fri Aug 18, 2006 11:14 am Subject: paying off some debt

Hello,
I have a question. My husband just reenlisted to stay in the military. We are getting a bonus I think after taxes it will be 10860.00 We are going to pay down alot of our bills. Now will this raise his credit score? If anyone knows that would be great for some info.

Posted: Fri Aug 18, 2006 11:35 am Subject:

tinkerbell4dg

Hi, welcome to the forums.

Paying your bills on time is a great way to raise your credit score. Also, paying off any debt will help increase that number. Paying your bills contributes about 35% of that score number you see. Also, what are your plans after paying off your old debt? Keeping those accounts open will also help increase your credit score.

Regards
Mike

Posted: Fri Aug 18, 2006 12:01 pm Subject:

I second Mike's advice. Paying bills in time definitely helps. Utilize your fund in the best way to improve your credit. If the accounts are shown negatively in your file, it may not get removed completely but still, a paid account will be positively viewed by your future lenders. They will see you as a responsible being and you won't be a risk to their credit in the future. Besides, you will also get the best deals on the table from the financial institutions if you have good credit scores. You will get a better interest rate than someone who has bad credit allowing you some decent savings.

tinkerbell4dg · Posted: Fri Aug 18, 2006 1:03 pm Subject: thanks

thank you for replying. I know when we get our bills down that we are going to keep them down..At the beging of the year he will get deployed so while he is gone I am going to put all his extra pay for being over there away so when he gets back everything will be payed for..That will have a nice feeling..Thanks again for posting..

Posted: Sat Aug 19, 2006 11:43 pm Subject:

Well, congratulations on the bonus. I still think that they don’t pay our servicemen and women enough for their hard work. But for now, I guess bonuses will have to do.

I second all of the advice that was previously given. Put some of the bonus into savings and use the rest to pay down your debt. Paying on time regularly will help you to improve your credit score.

Also, there are other things that you can do in order to improve your credit score. First you can pull up your credit reports and look for any mistakes.

Correcting mistakes like bills with mistakes or bills that don’t belong to you can definitely go a long way in improving your score.

Posted: Sat Aug 19, 2006 11:50 pm Subject:

Also, you can do other things to improve your credit score.

For instance, you should try your best to reduce the balances on your cards. Generally, you should try to keep your balances at or below 25% of your credit limit.

Also, don’t close unused accounts. Keep them open even after you have paid them off. You also, shouldn’t open new accounts when applying for a loan

Posted: Tue Aug 22, 2006 9:04 am Subject: Yeah I think so too

I am in the military and I just got a bonus while I was in Iraq for $10,000.00 tax-free. What I did with my money was I took half of the money and put it in the Savings Deposit program which will give him 10% on his money. Which will basically give him more money than just setting it in a regular savings account.

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