Paying off loans and credit card debt can improve damaged score
By Credit.com Staff
But now that the economy is slowly recovering again, consumers may want to know just how to begin repairing the credit they damaged. According to a report from the Richmond Times-Dispatch, the fastest way to begin fixing your credit score is to start paying off delinquent credit card debt. The sooner a consumer starts making payments into their balances again, the sooner their credit score will begin to improve again.
In addition, consumers may further improve the health of their credit report by beginning to pay into the federal student loan debt they may carry. Unlike most lines of credit, delinquent student loans issued by the government don't come off a person's credit report until they're paid.
The largest portion of a consumer's credit score is made up solely of their payment history. One bill that goes past due, even if it's only by a day or two, will do damage to their rating.