How much can paying credit card debt help credit score?
When I was 18 I made the stupid mistake of getting a credit card, used it a few months and paid it, than I don’t know what I was thinking. Anyways I didn’t pay it and it went to collections and on my credit. Now it’s $ 900 and five years later.. It’s the only debt I have, I don’t have any other loans, or anything else on my credit.
My score right now is 571 (experian) and they’re calculator estimates if I had no delinquent accounts (I assume that means to pay off al debt) that my score COULD raise to 641..
Could I really expect to see that big of a jump in my credit, and would I be able to get a new credit card to keep open and start building my score even more..
I’m also wanting to get a house within a year or two which is another motivating factor for this so all info is welcome.