Am on pace to be completly debt free this summer? But have heard that could hurt your credit score.?

5 Comments Add yours

1. Poppy
   February 28, 2010
   6:30 pm

   Check out Dave Ramsey he is a multi millionaire with a fico score of "0". There are banks that will deal with you on home buying, being debt free and a steady income. I’m proud of you keep up the good work. A fico score is nothing other a score on your indebtedness.
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2. Dixie Darlin'
   February 28, 2010
   6:36 pm

   Being debt free is great!

   You do not have to be in debt to continue to build your credit rating. On the credit cards that you currently have charge small amounts, like groceries and gas each month, make sure and pay off the entire balance each month. This will allow you to continue building credit.

   If you do not use your credit, you will loose it. The card accounts will be closed due to being inactive.
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3. Janey
   February 28, 2010
   6:51 pm

   Paying your debt off is not going to hurt you. When someone has never had a credit card or any debt, they don’t have any credit. In your case, you are paying your credit down/off. Your credit is still there. You should use your cards periodically to keep them active. Don’t close the cards.

   I have zero debt at this point but have both mortgage, car and credit cards showing zero balances.. the mortgage and car are obviously closed accounts but the credit cards are open and active and my score is very good. This after having a score in the mid 400’s just a few years ago. (following divorce).
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4. This Jersey Girl ♥♥♥
   February 28, 2010
   7:15 pm

   man I am going through the SAME thing in order to buy a house. Let me tell you the insane things I’ve learned along the way #1, you should have one or two open credit cards and use no more than 15% of the limit on there, having balances down to zero shows as "inactive" and the account sometimes (especially with the new laws in place) will be closed making your credit look like sh*t. #2. There was things called "hard inquiries" it’s when someone looks into your credit and it stays on there for 2 years, even more and that brings your score WAY down more than carrying higher balances than 15%. It’s all an as* backwards game that really makes NO sense whatsoever. I’d get a copy of your credit report(s) and keep an eye on what’s on there and any changes. It’s almost impossible to get false information off your reports too, you have to work with a (ligit – check with the BBB before using anyone) company to remove false information such as (3 inquiries from one company for no reason). It’s hell and it’s going to make you crazy and sick, just do the best you can, keep an eye on things and do a lot of research because new laws were put into place today by credit card companies that can HURT the consumer. Best of luck to you, don’t let it drive you crazy!
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5. Robert W
   February 28, 2010
   7:58 pm

   yes!! if you don’t owe anything the banks and others don’t know how good or bad you pay?? in time you won’t have any credit reports in your file and no one will give you a loan?? in short=you have to have credit to get credit? even if it is just a little??
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