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I do not have ANY mortgage, car payments, and I have NEVER owned a credit card. Just want to get that out of the way.

I’m in college right now and I have a few students loans out. I also have some bills as debt such as a few doctor bills, a phone bill, and a cable bill from when I was trying to live on my own.

Along with my student loans, I’m close to 10,000 USD in debt. My credit score is very poor thanks to my unpaid bills.

Is it better to pay everything off ASAP or should I set up payments to show I can make the payments on time? Which would raise my credit score? I’m at a loss!

2 Thoughts on How to pay off debt and increase credit score?
  1. Reply
    Ryan M
    September 14, 2012 at 3:43 pm

    You are aware that it takes YEARS to significantly raise credit scores….right? Simply paying off all your bills will not really do all that much…..no matter how quickly you do it. Also, your student loan debt (assuming its current) is actually HELPING you right now since it is diversifying your debt.

  2. Reply
    Sheryl
    September 14, 2012 at 4:14 pm

    If you don’t have any mortgage, car payment and credit card, it will be hard for you to raise your credit score

    it is always better to get debt out of your way ASAP. Get a second job, get more working hours, raise your income. Cut all service that you don’t need (cable/phone etc)

    try and see if you can do a student loan consolidation as well

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