Would it be smarter to pay off my credit card (closed by the way, with no interest) in the next two months with big payments, or to continue paying with smaller payments? I want to improve my credit and I would think paying smaller payments but paying longer would be better because it shows a longer good payment history. What do you think? Would it better just to pay it off?
2007-03-09 06:31:49 · 8 answers · asked by Dani 2 in Business & Finance ➔ Credit
The creditor closed the account and I agreed to pay the full balance with no interest rate. I have paid off over half already
2007-03-09 06:52:21 · update #1
Pay it off. The sooner, the better.
2007-03-09 06:39:13 · answer #1 · answered by Anonymous · 3⤊ 1⤋
I'd just pay it off. If the creditor closed the account, making smaller payments isn't going to help your credit score. The sooner you pay it off, the sooner you will be able to improve your score. When a creditor closes your account, it can be considered a negative action.
There are many other things you can do to improve your score. Strive to only borrow 1/4 to 1/3 of the credit line that is available, and always make payments that are substantially more than the minimum. Get copies of your credit ratings and scores, but don't buy any of the optional products or services that the credit reporting companies offer and push. Check the reports for accuracy and dispute any inaccuracies. The reports are free - once a year - so I order one every 4 months from one of the big three. That way, I never have to pay for the reports (except the FICO score).
2007-03-09 16:43:01 · answer #2 · answered by jimmyjohn 4 · 0⤊ 0⤋
When you say it's closed, is it closed because you closed the account or was it sent to collections and the credit card company canceled you?
Paying it off would show that you have settled the debt. Making payments on it while it's in collections is certainly good but getting it paid in full is better.
If this is an account that you closed yourself because you didn't want the account anymore, then making the monthly payments is not going to hurt you. But I don't believe any credit card company is going to let you just close an account with a balance owing on it and not charge you interest. It's not really closed until it has a zero balance.
2007-03-09 14:42:22 · answer #3 · answered by Faye H 6 · 1⤊ 1⤋
Building credit is can be a difficult task, but from personal experience as a loan officer I can give you some helpfull tips and advice to build a solid credit history.
I would pay that card off and start fresh.
Consider getting two new cards, a good source for a list credit cards for limited or no credit is http://www.bad-credit-credit-card-for-people-with-bad-credit.info Even if you need to get a secured card it will be well worth it to help improve your credit. Make sure to keep your balances under 50% and make your monthly payments on time. This will help to offset that late payments on you old card.
2007-03-09 16:01:26 · answer #4 · answered by Anonymous · 1⤊ 0⤋
There is still interest accruing on the balance, even if the credit card account is closed.
Your best bet would be to go ahead and pay it off entirely.
2007-03-09 14:39:41 · answer #5 · answered by mom2trinityj 4 · 1⤊ 2⤋
Assuming you have another credit card, and since this account is already closed. I would just pay it off.
2007-03-09 14:35:44 · answer #6 · answered by Army Veteran 2 · 3⤊ 1⤋
pay it off if the account is closed. it shows you acknowledge your obligation. taking time to pay off closed accounts will not help your credit history.
2007-03-09 14:41:27 · answer #7 · answered by bernel1403 5 · 2⤊ 1⤋
Pay it off as fast as you can. It is better to get rid of the debt than drag it out.
2007-03-09 14:59:12 · answer #8 · answered by Gone fishin' 7 · 3⤊ 1⤋