Zorbonaut
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Having $3,000 in debt which you pay on time will not greatly impact your credit rating per se. Basically whilst your credit score may be impacted, it is more than likely due to your Servicing Capacity (i.e. amount of funds that you are able to borrow).
What I mean by that is that the more disposable income you have available after tax the better credit score you may receive.
Your credit score will be affected by numerous reasons and is different (in proportion) with whom you deal with. Repaying your bills is only one part of your credit score.
If you did not pay your bills and debt recovery action was taken against you, and subsequently a default/judgement/writ listed against you...then your credit rating will be significantly impaired, but once again...to what degree is different with whom you deal with.
cheers |
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tap892
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Recently some of the credit bureaus have changed their policies, I would contact them to find out what their policy is. However, over the years, I've found as long as you pay on time, regardless of your indebtedness, you should always have a great score, but check to make sure. |
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Jessie
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If your trying to get a loan, they look at your credit to debt ratio, meaning if your debt is higher than your credit, they wont give you a loan. No it doesnt effect your credit score, but if you have too much credit lenders wont give you credit until some is payed off. 3,000 isnt too much if you have a high credit score. |
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Dark A
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no |
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Philly Kid
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It depends. The most important thing with credit is to always pay on time, so in that aspect debt doesn't automatically hurt your credit. On the other hand lenders look at your "debt to income ratio" i.e. if your debt is more than about 20% of what you make then you begin to lose points. But that really only hurts you when you start seeking new loans like if you are trying to buy a car, or house. If you are consistently on time and not looking to borrow any more money anytime soon, then paying down a 3000 dollar debt can actually help your credit in the long run. Just remember to always-- always pay on time, and pay more than the minimum, or you will end up paying 2 or 3 times the original debt. |
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cej
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Well depends on your debt to credit ratio if you have a credit line of only 4000 dollars tat means your debt to credit ratio is high and it lowers your score but if you dont charge any more and pay down your ratio your score will rise and be sure to pay more than the min on your credit card bills or you will be paying on them for years because anything over the min goes straight to principle |
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qwerty
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The ratio of your current balance to your maximum credit limit DOES play a factor in the credit score determination function. (E.g: a lower balance with a higher limit will yield a higher score.)
But, since the exact function is a proprietary secret, no one can tell you how much levity this specific factor plays, it's just 1 factor out of many. Paying bills on time (or as fast as possible) is another factor that will yield a positive outcome. |
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Mrs Robinson 2 B
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yes |
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Mushhh
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No, because you are paying on time and not falling behind on payments. if you were 3000 in debt because you didnt pay your bills on time in the past, then your credit score would of gone down. If you continue to pay on time, then your score will go back up! |
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Cinders
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Not in NZ it doesn't. |
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★★★ Katharine ♥♥♥♥
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yes it does - my credit socre was above 800 - until I put $3000 on the credit card - that lowered it to in the 700's. now it is paid off - so, I should see my score going up soon .
I have about 5 credit cards - one being 15,000 available on it. |
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Classy Granny
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No. I have about 10,000 worth of debt with a credit score of 760 |
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beauty s
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NO!!! aslong as u are paying your bills on time then u are fine.. U could be 90,000 in debt but if you are paying on time u are fine.. |
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