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roccaas
Posts: 1
Registered: ‎10-15-2012
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Pay them off "all at once", or "in a few big chunks"?

Better for score?

 

I can pay off all three at once, but does that "signal" anything to the credit score?  Would it be better to pay off say 1/4th per month over 4 months?

 

Immediate payoff will certainly make an interest rate and interest payment impact, but these things don't always work logically, and I don't want the scoring computers to read anything into my hard work to come up with enough to pay them all off at once.

 

Thanks

Established Contributor
TNTransplant
Posts: 772
Registered: ‎01-03-2012
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Re: Pay them off "all at once", or "in a few big chunks"?

Pay them all off now if you have the money.  

 

Your max FICO score will ultimately end up the same, but you'll get the dual benefits of an earlier max score (rather than later) by paying them off now, and you'll save $ by paying no interest.  Your FICO score is only a snapshot for the exact time that it's being pulled anyway, so there will be no long-term negative effects by paying now - only positive.


Starting Score: Jan 2012: EQ - 659, TU08 - 670, EX - ???
Current Score:April 2014: EQ - 772, TU08 - 782, EX - 754
Last App:3/21/14

Valued Contributor
Uborrow-Upay
Posts: 2,708
Registered: ‎10-16-2008
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Re: Pay them off "all at once", or "in a few big chunks"?

Welcome to the forums, roccaas!

 

If you are not seeking new credit anytime soon, pay off your cards in full at your whim.  It won't matter much in scoring, but it will matter to your wallet.  Do not pay interest if you don't have to.

 

Please know that I might not fully understand your question, but as a general rule, if you're not looking for a loan, don't sweat your credit score, just tweak it when you need it!

 

:smileyhappy:

 

 

All the best to you, and again, welcome!

Valued Contributor
thom02099
Posts: 1,350
Registered: ‎08-30-2011
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Re: Pay them off "all at once", or "in a few big chunks"?


TNTransplant wrote:

Pay them all off now if you have the money.  

 

Your max FICO score will ultimately end up the same, but you'll get the dual benefits of an earlier max score (rather than later) by paying them off now, and you'll save $ by paying no interest.  Your FICO score is only a snapshot for the exact time that it's being pulled anyway, so there will be no long-term negative effects by paying now - only positive.


+1

You've done some work to get your scores to where they are.  You could go to that next level by paying off your balances and keeping one account at ~7-9% utilization.  I've seen that recommended here and elsewhere and that's where I got my best score boost.  YMMV. 

Diners Club Premier MasterCard $50K / AMEX Gold NPSL / AMEX Zync NPSL / AMEX Blue Cash Preferred $14K / Bank of America Cash Rewards Signature Visa $15K / Merrill Lynch Plus Signature Visa $15K / Wells Fargo Propel 365 $15K / Chase Sapphire Preferred Signature Visa $10K / J P Morgan Select Signature Visa $10K / Chase Slate Visa $6K / CITI Diamond Preferred MasterCard $13.2K / Discover IT $10.5K / IberiaBank Select Visa $8K / 1st Command Bank Platinum Visa $7.5K // Home Depot $9.7K / Lowes $10K

EX = 799 EQ = 812 TU = 811 - 11/2014
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migliogiorni
Posts: 657
Registered: ‎06-27-2012
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Re: Pay them off "all at once", or "in a few big chunks"?

Pay em off asap.  There is no reason to wait when you have the cash now, GL.

 

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CSP: 5k
Discover: 5k
Citi TY Preferd: 5k
Wally: 5k
JCP: 4.9k
citiForward: 4.7k
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DFS: 2k
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webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: Pay them off "all at once", or "in a few big chunks"?

All at once. The computer doesn't score you by how much is left unpaid. They score you by how fast and often.you pay everything.

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
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Epcot
Posts: 2,789
Registered: ‎10-10-2012
0

Re: Pay them off "all at once", or "in a few big chunks"?

Good advice given, and welcome aboard!

Starting Score: EQ 717 EX 724 TU 736
Current Score: EQ 816 EX 780 TU 823
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