does paying off your credit cards hurt your credit score?

Answer 1

No! If anything, it will benefit and the credit cards company might raise your spending limit.

Answer 2

This question has been asked, almost daily. Some has said that a constant pay off of the credit bill is good for your credit. Some have said that a constant clearing of credit balances is good for credit. It is agreed by all that a failure to pay credit card bills, intentionally or otherwise is bad for credit.

I contend from personal experience that paying as much as possible on the credit card bill is the best way to go each month.

Where most of us fail is "making money". Most people believe that if they are making as much money as they need to pay their bills and a little to add to their saving account, that all is well. I contend that this approach is flawed. Everyday we pass up opportunities because we don't see other people taking advantage of these opportunities.

Have you ever walked pass an old building, something that no one seem to want and wondered why? I do so often that, I am amazed that these things are right in front of my eyes.

We must learn to invest in LIFE that is in front of us.

Answer 3

Yes, it does because a portion of you credit score is determined by your debt ratio. From what I have read your balance should not be over 30-40 percent of your available credit for each account. Last summer I paid off a credit card that had a balance of $6500 and the available credit on my card was around $8500. This improved my credit score by more than 25 points in one month,. If it is a card you have had for awhile, do not close the account. This is because another portion of your credit score is determined by your history. If you close any accounts, close your newer ones. Another way to help you when you pay off your card is to continue to use it but pay it off in a couple of months.

Answer 4

Absolutely NOT!!!! It's the best thing to do. Try to ALWAYS pay off your credit cards as often as possible. What hurts your credit is when you constantly obtain more credit lines. It's better to maintain only a few credit lines, and build a long credit history.

Answer 5

No, it will improve your credit score, but is you do so, also if you pay off a cc, keep the account active with 0 balance to have a long credit history, this will improve your score as well.

Answer 6

FICO scoring is based upon a couple of factors: balance to credit limit ratio and length of credit history. LOCH is a bigger factor, so if you pay them off keeping them open will help your score. For example:

1 credit card $1,000 balance/$5,000 limit, 5 year history

is better than..

1 credit card $0 balance/$5,000 limit, 1 year history

So if you pay them off don't close them!

Answer 7

it will not hurt or help your credit to pay off cards in full. it is best to keep a line of credit open and charged up to 60 percent of the limit. By staying below the 70 percent area you avoid hidden percentage rates. and continue to build credit by making a minimum payment.

Answer 8

The less Credit cards you have open the better your credit score.

Answer 9

If you pay them all off every month, yes, because you don't develop a "credit history." If you were to pay them off in six months, then you have a history, and a great score. Good luck.

Answer 10

Paying off your credit cards increases the range between what the limit is and what you owe and INCREASES your score!

Answer 11

No.. but don't cancel them. That will hurt your credit card score.. I found out the hard way.. Tried to eliminate several cards and only kept two..