2006-06-15 03:36:13 · 6 answers · asked by Mary K 1 in Business & Finance ➔ Credit
Do not follow Hot Pants advice and cancel cards, that will actually lower your score.
By paying off your cards, I assume you mean cards that are not overdue or in collections right? Paying off past due accounts does not help your score unless the creditor agrees in advance to remove any negative information from your credit report.
Otherwise, yes it does help your score. It will improve your debt/credit ratio, one of the major factors used in calculating your FICO score.
2006-06-15 08:03:42 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It will improve your credit, but it won't be instantaneous.... card companies usually look at the long haul, but less unsecured debt (like credit cards) is best. Actually, you should try to never use more than 33% of your credit on any one card, and pay the balances off each month... basically if you can't pay if off at the end of the month, think hard about if you really need it. Sometimes, however, it's good to carry over a small balance for a month and then pay it, showing the companies you can handle debt effectively, but I'd say the first thing to do would to be get your debt down to 0 (or as close as you can) and then work it back up again.
2006-06-15 10:41:23 · answer #2 · answered by b_switek 2 · 0⤊ 0⤋
i'm not sure on this since i have no credit cards to wory about but if you pay them off, in full, it shouldn't do anything to hurt your credit score, and if you always pay them off in full and on time, it will either keep your score as it is, but i think it actually raises it over time... i do know that cancelling credit cards that you no longer use is bad for your credit score though... you're supposed to just cut the cards up if you never want to use them again and let the acount remain inactive until the company terminates it for you
2006-06-15 10:41:40 · answer #3 · answered by La De Durango!!! 4 · 0⤊ 0⤋
from someone who just did it, a good impact, i went up by almost 25 points which is a great thing. just remember a balance isnt a bad thing as long as the available credit is always higher then ur balance. remember to also close some not all accounts if ur really not using them.
2006-06-15 10:41:16 · answer #4 · answered by futurehero5200 5 · 0⤊ 0⤋
It will raise your scores. It will raise them even more if you pay them off and close the account altogether. It will show that an account was satisfied and paid in full according to the terms the company established.
2006-06-15 11:30:14 · answer #5 · answered by Hot Pants 5 · 0⤊ 0⤋
it will improve it
2006-06-15 10:41:27 · answer #6 · answered by Anonymous · 0⤊ 0⤋