Is it better to pay off allbalance off or carry a balance in regards to a better credit history?
2007-03-26 09:59:42 · 7 answers · asked by Ariel G 1 in Business & Finance ➔ Credit
On your credit report, it only shows that you paid on time, and it shows your limit and balance and what your highest balance was.
Paying on time is the key. Paying interest does not benefit you.
2007-03-26 10:27:22 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Pay off all balances monthly is the best way to go. Credit companies look at debt ratio.
For example, if your credit line is 1,000 dollars, and you have 800 dollars charged, your debt ratio is 80 percent. If you have the credit line is 1,000 dollars, and you have 100 dollars charged, your debt ratio is 10 percent.
Your credit issuer should be reporting to all three major credit bureaus a payment history. Generally, it will read as a 30 days late, 60 days late, and 90 days or more late payment. These are major marks against you and your credit.
If you are working on rebuilding your credit, contact your utilities, in writing, to report to the three credit bureaus a payment history. Some will, some won't, and it doesn't hurt to ask.
Also, don't ask for any new credit for a minimum of one year. Too many new inquiries for new credit can hurt your credit score. A caveat to this, if you receive a pre-approved offer in the mail for a new credit card, consider taking advantage of it.
2007-03-26 11:00:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Pay all balances off is probably the best way to go. Keep in mind that you are hurting yourself by paying interest on the unpaid balance. Even if you did have a temporary 0% interest rate, at the very most your credit score is only going to improve by a couple of points at the most. Holding onto high unpaid balances to long will eventually hurt your score. So the best way is to not worry about your credit score too much and just stay financially clean as possible.
2007-03-26 10:05:55 · answer #3 · answered by homertorpedo 3 · 0⤊ 0⤋
if you are trying to rebuild or even build for that matter....at least keep a small balance on it for 6 months to a year....make the payments a little early and for over the minimum amount....this will show a history of timely payments and will improve (over time) your credit score....paying off immediatley for the purpose of building credit is pointless....if you could pay cash all at once (which is basically what you are doing if you pay the balance off) then what do you need credit for?...see the difference?.....
2007-03-26 10:09:43 · answer #4 · answered by cookiesmom 7 · 0⤊ 0⤋
Pay it off. No sense in giving the credit card company any opportunities to get additional money from you by charging interest. Get familiar with their website and their 800 automated account info line to know what you owe. The quicker you pay, the better it looks. Would you rather pay the $50 you charged before the billing cycle closing date, or pay $55 after the cycle closed and interest has been applied?
Do the math
2007-03-26 10:10:23 · answer #5 · answered by Anonymous · 0⤊ 0⤋
As long as your balances remain under 50% of your total credit line, your credit will be better.
2007-03-26 11:00:44 · answer #6 · answered by Anonymous · 0⤊ 0⤋
if you're looking to improve your score keep a balance on there. make more than the minimum payment and do not go over 50% of the available balance , and of course don't be late on your payments! ;)
2007-03-26 10:10:06 · answer #7 · answered by rob 1 · 0⤊ 0⤋