Can I raise my credit score by paying off my mortgage?
News from Concord Monitor:
Dear Debt Adviser: My credit score is 600. I plan to pay off my home completely. This will eliminate a major debt. How much will this improve my credit score?
Dear Patricia: How did you end up with a credit score of 600? Was it because you paid your mortgage late? My guess is no. So if you eliminate your mortgage, that still leaves the reason for the terrible score. That is where you need to focus your efforts if you want to improve matters.
Even if the cause of your low credit score is because of past credit problems with your mortgage, paying off the loan will not dramatically improve your score. However, if the mortgage loan is a positive item – meaning you have never had any late payments and always paid as agreed – then paying it off may give your credit score a little boost. And the paid-off mortgage loan will remain on your credit reports for 20 years, which will be a positive for your credit score moving forward.
In order to improve your credit s…………… continues on Concord Monitor