Suze Orman say's cleaning up old debt does not raise your fico score so how do you raise your fico score most
Answer:
Just make your payments on-time! That is the best thing you can do. Also, try to keep your balances low. Closing open credit doesn't really help much. If you keep an open account, but don't use it, it looks good to creditors.
So, just make payments, make payments & keep them on time.
I would say Suze Orman is full of it, but if you believe her to be an expert, why not ask her what to do?
Cleaning up old debt is not an instant answer, but it's the only one I know of that's a sure thing.
Have a look here.
Suze is correct: Your FICO is a reflection of your credit history-
not the other way around.
Your old debt is ALREADY factored into the score.
You can't change your history, concentrate on the future.
Look at WHY your score is what it is, fix that & your score will
come up with time.
your creditscore is based on the following components:
35% punctuality of payment in the past (only includes payments later than 30 days past due)
30% capacity used: the ratio of current revolving debt (credit card balances, etc.) to total available revolving credit (credit limits)
15% length of credit history
10% types of credit used (installment, revolving, consumer finance)
10% recent search for credit and/or amount of credit obtained recently
So based on the above, keep on making payments on time to your hospital bill and start lowering your credit card debt.
what is she mean ,that if you have old, negative account- the damage on your credit is already done. if let's say you want to pay this account after 5 years, the software credit agencies used will read this like new activity on your negative account and even you will pay this account- it will lover your credit score.
she refer to the statue of limitation law ,that let people to remove those negative marks from theirs credit reports in most states after 7 years. bankruptcy can stay 10 years. she is right and your credit score is calculated base of your new payment history , so sometimes is better to not touch your old bad accounts, then coming clean and pay them. unfortunately not so many people can afford and don't use any credit for 7 years and wait for all negative accounts to be removed by themselves.
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