should I pay everything on my credit report at once?

Question

I have about 3547 to pay off my credit(most are student loans) I have the money to pay them off. But Would it be better to start making monthly payments or just pay it off at once. I am trying to do what would reflect best on my report.

Answer 1

Ask yourself this one question: Will I be making more in interest than I am being charged? If the answer is no, pay it off. If your interest rate on your loan is 10% and your bank or wherever you will be stashing the money is giving a 5% return, you're basically losing 5% a month, compounded, without factoring in inflation which is currently 4.1%.

As for your cedit report paying off yor loan early, before term looks GOOD for a fixed loan such as a student loan or auto loan! As a matter of fact it is one of the best things you can do for your credit. The length of your credit history is important and paid off loans are included.
Your FICO score (or credit rating) is a number anyone who views your credit report judge your creditworthiness by and 30% is made up of your current usage of credit, meaning how much on a current loan do you still owe, how much of your credit limit on your cards is used. If your balances are close to the limits it has a negative effect on your FICO score and vice versa.

Creditors look at the total amount of the loan or credit limit, the balance owed on it and the closer you are to the limits, the more leveraged you are, the riskier they view you as. Bottom line, you stand to lose nothing and gain everything by paying off these debts.

Answer 2

Alocate the payments as they or you see fit, to keep them happy. using your money, make payments on time or a day or so early. Paying more to the the ones with a higher interest rates, so can can get them payed off first. This will not only establish a good credit rating for you.
It will help your credit score also. believe it or not. If you have 3 credit cards and decide you no longer need one. if you cancel the account with 0 balance of course, it will hurt your credit score.
I know, it makes no freakin sense. so a word to the wise, just have 1 good credit card you can live with.

Answer 3

Your credit report uses your payment history to determine your "credit score". If you pay everything off at once you will not have any history. Best to always be on time (or early). Student loans have very low interest rates compared to credit cards. Since student loans can sometimes take longer to pay off I suggest you immediately pay off the credit cards then pay the student loans off. You can always pay more than you owe each month to help pay off the loans earlier but you probably need to establish some kind of history.

Answer 4

It would be best to pay them off all at once, otherwise you will pay alot in interest (credit card interest is ridiculous) The only thing that reflect negatively on you report is if you are missing payments. It does not reflect negatively if you pay off a balance early.

Answer 5

If the accounts are past due, Pay them off ASAP. If they are current, keep at least 1 account open and pay according to your contract. This will help establish a history of on time payments.

Answer 6

Good rule of thumb with most debt: if you can pay it off, pay it off. It almost always works out better. You'd pay more interest on the debt than you could make with the money you saved by making payments.

Answer 7

Credit Report Myth or Reality
By: Herman Randolph

This article can help you a bit...

Good Luck.

Answer 8

I hope this helps you. Its about cleaning credit report.

How to Clean Up Credit Report

http://www.debt-loan-refinance-mortgage-credit.com/category/How-to-Clean-Up-Credit-Report.html

Answer 9

Check the Suze Orman web site or watch her show. She tackles questions like this all the time.

Answer 10

pay it off at once is the best thing