i am able to pay off a MAJOR portion of my debit. (credit cards..GET THEE BEHIND ME SATAN(S))
so, although the process has removed years off my life, how soon will my credit score rise? right away?, months, years?

I'm not sure if this is an appropriate response because I cannot answer your question....but...

I could care less about my credit score. As a matter of fact, the last time I had someone look at my credit score I was told it was zero. Zero is not a real value, credit score wise, but it showed that I have not borrowed any money in the past numerous years.

Paying off the CC is a great first step. The next step is to forget the credit score and pay cash for everything. Before you know it, you'll be burying cash in an old mason jar in the backyard and watching the change pile grow, which I use for my Christmas gift money each year.

My last big purchase was my Porsche. I found my car, pulled out a wad of $100.00 bills and saved a significant amount by not financing and waving the cash in front of the seller.

Cash is king.

NC <><

you're right...in a sense a good credit score isn't all that important because i plan to use cash from now on.

man,this has been a humbling experience.

i need a vacation. i think a weekend in vegas is in order. just go online, put in my card number and...wait...what am i saying?!

I think a good credit score is VERY important. While paying cash would be a great way to go, it isn't realistic. Paying cash is good if you are on a fixed income, have poor credit, can't manage your finances, have no bank account, have filed bankruptcy or nobody will give you credit because of unstable employment. Very few people can buy a new Porche with $100.00 bills. Those that do come to the attention of the IRS. Remember that most car dealerships are required by law to report all cash purchases over certain amounts. I think the dealerships prefer to sell to people who would finance. If you decide to purchase a home, then you certainly can't pay cash. Having a good credit score can determine your interest rate. What if you want to buy or lease a car? Your credit score could be the difference between a 1.9% and a 20% loan. There isn't anything wrong with having manageable debt. Many insurance companies give you a good credit rating discount. Many apartments check your credit before renting to you. Your credit score lets businesses know that you are trustworthy. If you had credit problems in the past, that is ok. You can always improve your credit score. I think your credit score is much more important that you realize.

More information on credit scores

While paying cash can be construed as a sign of poor money management, it is more often seen as good money management.

With the car scenario, I could have written a check or even used my debit card if it had been a dealer. Buying from a private party, I deemed cash would give me the best deal. In addition, if you can't afford to pay cash for the car, you shouldn't be buying the car.

As far as buying a house, most lenders will overlook your credit rating (score) if you have the cash to pay an appropriate down payment. Who would you rather lend money to, someone with a good credit rating that is borrowing 100% or someone with a low credit score and able to put down 20% cash? Most lenders would prefer the latter.

If you are interested in avoiding the scrutiny of the IRS, simply make payments less than $10,000.00. That's the magic number.

Thanks for the reply *Sparkle* and congrats on your nuptials.

NC <><

Personally, if I have the cash in $100.00 bills to buy a Porsche, I'll put them in a money market account or other investment earning interest. I can buy the porsche at lower interest rates than I can earn on an investment, putting up only as much as I need to. As to buying a house, If I put up 20% and take a mortgage on the balance, I can avoid buying expensive mortgage insurance, which only protects the lender, not myself. It is foolish to take money out of an investment earning anywhere from 4 to 20 percent for whatever bnefit one gains from paying cash. The high rollers never use their own money if they can avoid it.