I had $20K debt due to some negligence on my part, but I was able to pay it off in 1.5 years! I make close to $58K a year, but if I didn't have a wedding coming up, I would've been able to pay off my debt sooner. I was schooling another young guy at my work telling him to spend less, and put as much money as he can to his student loans to pay them off faster. I told him once he pays them off his credit score will sky rocket! I saw my credit score drop down to the low 700's, and then sky rocket to 830+ after paying off my last credit card. The only thing creditors care about is that you will give back their money when it is loaned to you. Unfortunately I had to loan $25K for the wedding I spoke of earlier, but it still didn't drop my score as much as it did when I was in $20K worth of debt. I guess the debtors know I am good to pay them back.
If you're looking to increase your credit score, this is a good way. Yea, you will pay some interest, but getting a loan and then paying it off helps increase your credit a lot.
April 20, 2017 at 02:59PM
