Can You Explain That A Little Bit Better?

Question

redranche- IF I PAY IN FULL BEFORE THE DUE DATE WILL THAT REALLY HELP MY SCORE. I WAS TOLD THAT YOUR CREDIT SCORE IS ALSO FOLLOWED BY A PIE CHART ,EVERYTHING ABOUT YOUR CREDIT IS BUILD ON A PERCENTILE.IF PAID IN FULL I WOULD HAVE A SMALL PERCENT IN THAT AREA...... WOULDN'T I?

rogerV- JUST 33%! SO WHEN SHOULD I PAY THE DIFFERENCE.IF I LEAVE A BALANCE WOULD IT HARM MY SCORE?

astley101- PAY BY THE DUE DATE BUT.... IN FULL OR IN 2 PARTS?

IAM JUST TRYING TO UNDERSTAND HOW THIS WORKS TO HELP MY SCORE AND TO MAKE SURE THAT I AM DOING IT RIGHT.

THANKS FOR YOUR ANSWERS GUYS.... AND GALS,THEY WERE A LITTLE HELPFUL.

Answer 1

Ok, here is how it works. If you pay in full before the due date that should be good, right? Not necessarily. Creditors want to see a track record of payment. If you have paid it off in less than three years, this will have a minimal impact on your credit score because you will not have shown an ability to pay over the long haul. Besides, creditors want to see that it is worth their while to loan you money. If you aren't going to make them money, why should they bother with you. Remember, right, wrong, or indifferent, they are in business to make money. They make money by charging you interest.

Now if you paid for at least three years and then paid off early, this will have a very good impact on your score. It shows that you are financially responsible over extended periods of time AND that they can make some money off you.

I hope this helps you.

If you have any questions about your credit issues please feel free to email me at [e-mail]

Answer 2

If you pay it in full before the due date it will do the most good. Never pay only the interest/minimum balance or after the due date... it's best to keep as low a balance on them as you can and pay them off as soon as possible.


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If you pay it in full before the due date it will do the most good. Never pay only the interest/minimum balance or after the due date... it's best to keep as low a balance on them as you can and pay them off as soon as possible.

fyi. THIS IS NOT MY ANSWER, I'M NOT GOING TO ANSWER YOU WHEN YOU GOT SEVERAL GREAT ANSWERS. I JUST COPIED AND PASTED THE BEST ONE THAT YOU GOT THE FIRST TIME THAT YOU ASKED THE QUESTION.