agency once or twice a month? And also how long does it take for payments to start posting ?
2006-12-28 05:52:11 · 8 answers · asked by Dark & Lovely 1 in Business & Finance ➔ Credit
Hey, if you've got the money to pay it all off at one time - DO it!! Just get it out of the way and behind you!
Your next best alternative is to make payments (as most of us do).
Usually it takes about 30 days for the payments made to post.
2006-12-28 05:57:18 · answer #1 · answered by Ambassador Z 4 · 0⤊ 0⤋
If you're looking to improve your credit score, keep in mind that credit utilization is one of the most important factors in calculating your FICO score.
That being said, suppose you have a credit card for $500 and another for $1000, both maxed out. To achieve 50% utilization for each, you'd have to pay $250 towards one and $500 to the other. Overall this would have a better impact on your credit score than paying cards off randomly.
If you can't pay off all of your debt at once, I would recommend setting a goal of getting your balances to 50% across the board. Start with the lowest balances first - you will see an immediate impact if you pay $500 towards a balance of $1000 as opposed to paying that same $500 towards another card with a balance of $3000.
Make Your Nut
http://www.makeyournut.com
2006-12-28 15:12:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Payment records are updated once monthly. Paying off the debt over time has the best overall affect on the score but accounts that are already over 2 years old can be improved rapidly by paying a large chunk of the balance.
Here is some additional info. Hope this helps.
2006-12-28 14:21:53 · answer #3 · answered by loanman46 2 · 0⤊ 0⤋
It depends on what you are doing. If you are working to build credit, and you have a loan, then you want to spread the payments to where the loan will be paid off in 6 months or more, otherwise, it won't look as good on your credit report. If it is a credit card, and you don't have 0% interest rate, then pay it all off every month. They usually post every month, at least mine do.
2006-12-28 14:27:35 · answer #4 · answered by Marusia 2 · 0⤊ 0⤋
It is always best for your credit score if you pay off your balance. There is a ratio of credit limit / credit used (ie: if you have a $1000 limit and you carry a $500 balance, you are using 50% of your credit.)
Your FICO score is calculated using this ratio as one of the factors. The lower your balances, the better your FICO score -- so pay it off!
Good luck to you!
2006-12-28 14:01:50 · answer #5 · answered by James 2 · 0⤊ 0⤋
If you pay it off all at once then you don't have to pay any interest. Payments should post right away.
2006-12-31 00:28:51 · answer #6 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋
you can do it in two ways -
1. pay them off one at a time
2. go to a consumer credit counseling service and let them consolidate everything for you.
Go to www.annualcreditreport.com and get a copy of all 3 credit bureaus for free and so you know what is on your report and who to pay. Then as you pay them dispute the items on each report and sometimes they do not respond and it is removed from your bureau(s)
2006-12-28 14:00:34 · answer #7 · answered by Anonymous · 0⤊ 0⤋
If you're talking about credit card debt, the quicker you pay it off the better off you will be. Those interest rates are quite high.
2006-12-28 13:55:27 · answer #8 · answered by nickfromct 3 · 0⤊ 0⤋