I want to improve my credit score. I'm not sure if I should pay all of my credit cards off completeley or just reduce the balances and pay a little bit on them each month.
2006-12-27 18:37:17 · 19 answers · asked by NikB 1 in Business & Finance ➔ Investing
It's better to pay them off to zero balance so you don't have nothing to worry about.
If you won't pay it off to zero balance your still gonna be on debt. so better pay it off and get your mind on something else.
2006-12-27 18:39:57 · answer #1 · answered by binibining pilipina 5 · 1⤊ 1⤋
I am assuming you have only one credit card judging from your question. You are probably paying a high interest rate on that card. If you can pay off that card with your inheritance, do it. The interest is a killer on these cards. Keep Christmas as you always did. It's nice to have that extra cash and splurge on gifts but after the holidays those bills come rolling in. Christmas is every day. Keep in the spirit of the season. You will still enjoy it. Get yourself out of debt. You will be happier for doing it that way. PS: If you decide to use that card after paying it off, use only what you can afford to "pay as you use" each month. Happy Holidays!
2016-03-28 21:57:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If I were you, I would pay them off all at once and then once down to zero balances then take each card and buy something small like a pack of gum and pay it off each month. Like make sure you don't charge more than $20 on each of the cards and then pay it off each month. In a few months your credit would be golden.
If you have alot of credit lines open, just do this with one or two cards so it doesn't get confusing.
2006-12-27 18:41:28 · answer #3 · answered by Anonymous · 1⤊ 2⤋
It depends on the size of the sum of money you got and the amount you owe. If you can pay everything off and still have enough left over to buy a house, car, or whatever it is you want, then pay the whole thing off. If after paying them off, you don't have much left over, or not enough to buy your car/home etc, then pay enough so the interest charges aren't killing you and make steady payments every month, more than the minimum, until they are paid off.
2006-12-27 18:56:12 · answer #4 · answered by more_brains_than_brawn 2 · 0⤊ 0⤋
In general, it will be best to just pay them off. Once you've done this, charge lunch once a month and pay it off at the end of the month. This will create activity (improving your credit score) while you'll be paying no interest by paying off your entire balance each month during the grace period.
2006-12-27 18:43:02 · answer #5 · answered by David G 5 · 1⤊ 1⤋
yes for credit history it's not a bad idea to pay a little bit more than usual every month instead of lump sum.
if you pay lump sum, the history will show that you pay off your debt because you just happen to get lucky, which doesn;t always happen twice to someone, so that doesn't improve your rating at all. What if you don't get that lucky again next time, this means you can't pay off your debt, right.
2006-12-27 18:42:44 · answer #6 · answered by Anonymous · 0⤊ 1⤋
pay the credit cards off this is good for the rating. but do not cancel the cards. just keep them at a zero balance. this will show you with a larger available credit that you aren't using. this helps a lot in your score.
2006-12-27 18:41:09 · answer #7 · answered by kipp B 3 · 1⤊ 1⤋
Pay the credit cards off and get rid of the interest rates...if you pay some, the interest rate will take them back to where they are know after a few months.
2006-12-27 18:40:10 · answer #8 · answered by gala-day 3 · 0⤊ 1⤋
No, dont pay it all at once -that will lower your score. They want to see that you owe - but that you are responsible enough to pay. Make a larger than minimum payment each month. I would suggest three times the min - but it depends what you can afford. If you only pay the min on a 2000 balance, it will take over twenty years to pay...
Who wants that?
2006-12-27 18:38:57 · answer #9 · answered by freshbliss 6 · 1⤊ 1⤋
Reduce until you can keep your balance current easily. It is best to go to no balance. Then keep current. Always having a balance on your cards is not a plus. Paying off debt and finishing it is a positive.
2006-12-27 18:41:40 · answer #10 · answered by Susan M 7 · 0⤊ 1⤋
definatly pay it off!! avoid those intrest charges. I make every purchase on my credit cards and make sure they are payed in full every month. I see no reason to pay those expensive intrest rates. I have never payed intrest on a card and have a credit score around 750
2006-12-27 18:42:23 · answer #11 · answered by DisneyKrayzie 4 · 2⤊ 0⤋