Im making enough money to pay off all of my debt (student loans, credit cards) within 6 months. However I heard that paying consistently over the course of several years would be better for me credit-wise. Is this true?
2007-02-28 13:03:14 · 3 answers · asked by Chula 1 in Business & Finance ➔ Credit
Yes, this is true. It shows you are willing to pay each month and you will have the money each month and the creditors can always count on getting their money. It does make sense paying it all at once and they would love to get it, but a payment every month is the way to go.
2007-02-28 13:07:08 · answer #1 · answered by foshizz 2 · 0⤊ 1⤋
well credit is a nice double-edged sword. It's good to have credit available to you (like you've got credit cards you're not using). But it's also bad to have it all sitting there doing nothing for you. Personally, I'd spread it over a couple years because there's no need to throw all your money at that... have some fun. Throw a party or two.
2007-02-28 21:08:12 · answer #2 · answered by Modus Operandi 6 · 0⤊ 1⤋
it really depends on what your goal is here. it may help your credit scoring to pay them off as scheduled vs paying them off early in lump sum--but it would only effect your FICO or Beacon score by a few digits....I, personally, would rather pay them off avoiding paying all the additionally money in interest over all those years.
2007-02-28 21:22:19 · answer #3 · answered by Staying Quiet 3 · 1⤊ 0⤋