Hi
I have 2 credit cards. 1 with WellsFargo with 3000 limit and have 1700 debt and USBANK with 4000 limit with 2500 debt. I am a new graduate landed with a descent job. I was wondering if pay off both of my cc debts would be better or pay until both cards are below 30% of card utilization?
2007-08-12 11:09:38 · 7 answers · asked by Corsica2147 2 in Business & Finance ➔ Personal Finance
Why would you want to keep your cards charged up 30% and pay the banks interest on that each month.
PAY THEM OFF!
www.daveramsey.com
2007-08-12 11:12:32 · answer #1 · answered by Anonymous · 3⤊ 0⤋
It depends on what you are doing.
A.) If you are trying to keep your monthly expenses low, you should pay them off and save the interest.
B.) If you are trying to build credit, you should pay them down to the low percentage of the total limit you referenced and make timely payments. This has a much better effect on your credit score (if you wanted to buy a home in the near future, etc.) than having a charge card with no balance that just sits there.
2007-08-12 11:17:21 · answer #2 · answered by f1scrilla 2 · 0⤊ 0⤋
Get rid of ALL of it, and then just use CC's to charge a few things you will always pay off at the end of the month. Don't view them as a way to carry debt, it's just a way to manage your money, that's IT. You are fortunate to be young and without heavy debt, don't do what the vast majority do and ruin their financial life with credit cards.
2007-08-12 11:24:16 · answer #3 · answered by The Scorpion 6 · 1⤊ 0⤋
Pay them off but don't close them.
Don't pay the high interest if you don't need to - and that's the best return for your money. You don't need to carry a balance forever to establish and maintain your credit. You can use them from here not to borrow, but to save from writing checks like a check card, but pay it off every month. You don't have to use it every month either if you prefer cash instead - use it now and then to keep it active but no more than you can pay off. Anyone telling you not to pay them off is giving you bad advice.
Congradulations on graduating and landing your job!
2007-08-12 11:41:36 · answer #4 · answered by gogo7 4 · 0⤊ 0⤋
Pay them all off. It's best not to have any credit cards at all and pay everything by cash. Read Dave Ramsey's book "The Total Money Makeover"
2007-08-13 08:07:05 · answer #5 · answered by shrsandy 4 · 0⤊ 0⤋
congratulations on landing a decent job.
pay them off completely and then keep them that way
the interest you pay if you don't pay them off is killer since you get charged interest on everything you buy with them.
the way to do this is to stop charging completely and then pay the minimum on the larger one and as much as possible on the smaller until it is paid off. Then you tackle the larger in the same way.
GL
2007-08-12 11:15:10 · answer #6 · answered by Spock (rhp) 7 · 1⤊ 0⤋
Lower your debt but don't totally payoff your credit card. A good credit score is earned by people who pay on-time every month. But a good score also reflects your value as a user of credit. If you pay your credit card off, your score can go down! Credit card companies are scoring you so they want you to USE your CREDIT. That is what you credit score really indicates.
So, anyway, pay it down if that makes you feel more comfortable but don't totally pay it off. And continue to make payments on time every month.
2007-08-12 11:18:28 · answer #7 · answered by Stukish 2 · 0⤊ 3⤋