Credit card debt paying method...Please help.?

Question

Hi...I have 2 credit cards. One I owe 400 dollars and the other one I own 1000 dollars. Currently I have 800 dollars to pay off. I heard if you pay your debt off, your credit would go down. So I'm thinking to pay off around 375 dollars for the $400 that I owe, leaving around 25 to 50 dollars in there. I'll pay off the rest to the other account. What do you guys think? What is the best way to pay them off? Thanks.

Answer 1

Your credit does not go down if you pay off your balance in full. It may actually increase if you are increasing your available balance considerably. You should pay off the $400 balance in full, but keep the card open, just DON'T use it anymore. Next, pay the remaining $400 toward the $1000 balance and keep paying off until you aren't carrying a balance anymore. Try just to purchase with cash and/or pay off your card in full each month.

Answer 2

the reason that credit card lenders give you credit and the reason that its not good to pay it off at once is because they want to see if you are reliable, meaning anyone could buy something and pay it off - they want to see if you can be accountable month to month to make those payment.. and on time (which companies like mortgage companies look at before they lend you money to buy a house or a car)

My suggestion pay about $100 at time on the $400 you owe.. then as you get down to $0 use the card again and start the process all over. If you dont use it after you pay it off its pointless because your not building credit anymore.

This is what I do and I have PERFECT credit.. I get like 4 credit card offers a day! but dont get anymore credit card.. two is enough!

Answer 3

rather solid solutions Your subject isnt the debt, this is the way you cope with your cash. once you're making 2600, your lease won't be in a position to be via any potential 2200. What do you consume? vehicle coverage? Emergency decrease fee rates? .... First you're able to be able to desire to cut back your lease via seven-hundred or so. detect a good place that has each little thing risk-free. once you pass to the food market have the cheap. do no longer endulge or overspend. Open an oline decrease fee rates money owed and placed 20 for now each month. Dont say you cant, you could. AH btw, the fact you have expenses has no longer something to do with decrease fee rates.... you decide on extra money, get a extra suitable activity, or a 2nd activity. in case you haven't any longer paid previous due earlier, with the intention to rescue that credit and get rid of that debt you decide on an extremely agressive plan. minimum money wont do, activity will consume them. Why on earth you pay lots on friggin lease??? Are you working a bussiness from which you're making all your cash??? if so you're able to be able to desire to get one or 2 commonplace jobs and cut back the lease money to stay to tell the tale. think you decide on month-to-month 850 a month for lease (utilities risk-free) this may well be even seven-hundred. 80 a month for nutrition, asumming you realize the thank you to cook dinner and strech the dollar. a hundred thirty for vehicle coverage, = poor credit 60 = cellular telephone 2 hundred miscelanous expenditures = gasoline, etc a month = entire 1260 a month to stay. if your activity provides 2600, wich is approximately 20 an hour, and you get a factor time for 10/h that provides you with at leasts one thousand greenbacks extra, that should be 3600 a month - 1200 = 2400 to pay on your expenses You owe = 30890, Your debt to credit ratio sucks so which you cant ask for extra. forget approximately approximately 0 % grants. So, Pay those 1300 first suddenly to strengthen your credit a sprint. Then pay the different taking part in cards. do no longer INCURR ANY NEW DEBT. in one twelve months you should be debt unfastened = 30890/2400 = 12.87 = one eyar aprox.... in case you're able to make extra money or borrow out of your mothers and fathers you're inspired to take action.

Answer 4

Your credit score will not go down and may actually increase if you lower the amount you owe on the cards you already have. As far as which one to pay off, look at your monthly statements and see which one you are paying the highest interest on. Whichever one has the highest interest rate, is the one you should work to pay off first, making only the minimum payment on the other until the one is paid off. Then, concentrate on the other.

Answer 5

well at least you have some money to pay -- great work -- no your credit score will not go down -- pay the most money against the one that has the highest interest at the same time pay the minimum on the other one and once you get the one paid off work on the other one -- just keep up the good work!!!

Answer 6

In my opinion, (the way I do it), at after Christmas I owed $800 on one of my credit cards. I paid the minimum payment until Febuary when I got my tax refund and paid the whole thing off. Even, if you're tax return isn't that much--you can knock a hunk of change off what you owe.
Also, just paying $10-20.00 more every month will get it paid fast..because you're paying on the principle and not just the interest. (Interest IS your minimum payment every month). Hope this helps! Good luck!!!!!!!

Answer 7

I have met a few people who placed everything on their credit card and when the bill comes in they are able to pay off the balance every month. You are better off to pay it off.

Answer 8

Why are you so worried about your credit score? Quit worshipping the almight FICO.

Just pay your bills ontime everytime. Use credit when you need to and then pay it off as quickly as possible.

I pay my bills off every month except my car and mortgage and have an 850 credit score.

Answer 9

You pay the highest ineterest card rate the MOST, and FIRST until you pay it off... then work on the next one... paying them off does NOT NOT NOT whack your FICO score....

What it WILL do.. though... is save you $$$ in interest charges...

Answer 10

pay off the small one asap and keep it paid off.
if you need to charge something the month after, use this one, BUT always pay it off in full.

then go after the bigger one.

***
leaving a small balance won't affect your FICO score at all. You need to stop paying interest, it is eating your wallet.

You especially need to stop paying interest on the ordinary things you charge semi-regularly. {my wife tends to charge food at the grocery -- we've eaten it before the bill even comes and then if we can't pay it off immediately, we're paying interest on food we ate last month?? that is stupid.}

GL