balance?
2006-08-20 17:25:45 · 10 answers · asked by klay43701 1 in Business & Finance ➔ Credit
Your credit score (and by this, I presume you mean your FICO score, which is the most common in the industry) will benefit either way. The scoring model is weighted so that 35% of your score is based on your payment history (paying on time), 30% based on the amount owed (which is where paying the bill off would be slightly more helpful), 15% length of credit history (I'll come back to this in a minute), and 10% each to types of credit (open, revolving, mortgage, or installment, to name a few) and to new credit (inquiries and new accounts). If you pay on time and aren't maxed out, you're on the right track.
Regarding length of credit history, another of the answers I saw for your question recommended closing cards just before getting a loan. This can actually hurt your score, especially if the accounts you close are the ones you've had the longest. Be careful before closing them - you can pay them off and leave them open and possibly improve your score by doing so. Good luck!
2006-08-21 02:12:58 · answer #1 · answered by Bill C 1 · 0⤊ 0⤋
It can go both ways. Paying the bill on time gives you points, but if you have a large limit and nothing on it that could be bad.
A bank that you are trying ot get a loan from will look at that as way for you to over extend your debt and may refuse you a loan because of it.
They just don't want to give you a loan and then you turn around and max out the card making it impossible to manage your bills, mainly theirs.
I would use the credit cards, paying them off in full to avoid paying too much in interest, then a few months before going for a loan pay in full and shut down all but 1, maybe 2. The ones with the lowest limits. Charge at least 10% of the limit, then go in for the loan.
2006-08-21 00:34:42 · answer #2 · answered by charice266 5 · 0⤊ 0⤋
There are a lot of things that can bring your fico down or up. To answer your question you need to keep the following in mind, whatever your credit limit is you can only have a balance that is 1/3 of your credit limit.
For more info you get get your credit report by going online or calling in and it about $10, but if you were denied for credit for some reason you can get the report for free.
2006-08-21 00:43:52 · answer #3 · answered by anisarkisyan 3 · 0⤊ 0⤋
deepens how old is your credit history. if is below 2 years, better to pay your credit card in installment , you can pay more, than minimum instead paying one lump sum. if your credit history is more ,than 2 years, paying in full will lover your debt and will be better. credit score is determined by your payment pattern and also total percentage of all kind of credit you have. keep credit card balance below 45% of your limit and of course pay them on time.
2006-08-21 00:38:12 · answer #4 · answered by bianca 4 · 0⤊ 0⤋
If you're trying to build your credit score it's best to make payments. Be careful not to owe too much or this will make your credit score go down.
2006-08-21 00:32:01 · answer #5 · answered by Anonymous · 0⤊ 0⤋
always pay over the min amount due over time to raise credit score and always on time or before.
2006-08-21 00:34:10 · answer #6 · answered by semi273hemi 4 · 0⤊ 0⤋
don't know about credit score.. but it's better for you if you don't leave a balance.
2006-08-21 00:31:29 · answer #7 · answered by warriorn639mr 4 · 0⤊ 0⤋
pay your bill in full every month if you can.
it will give you outstanding credit.
balances dont bring your credit down unless you pay late.
2006-08-21 00:31:48 · answer #8 · answered by rcsanandreas 5 · 0⤊ 0⤋
Paying in full always does the trick.
2006-08-21 00:30:57 · answer #9 · answered by Anonymous · 0⤊ 0⤋
I think they want you to be one of those guys who doesn't pay in full.
But check these to know more on all kind of CC stuff and such:
http://credit-cards.ebookorama.com
http://finance.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
2006-08-23 17:39:31 · answer #10 · answered by Anonymous · 1⤊ 0⤋