Best to pay off credit card all at once or slowly over time?

[Anonymous]

My urrent FICO score is ~730.  I just received a bonus and I want to pay off my sole (CitiBank) credit card with a significant balance.  Should I pay it off all at once or would it be better to pay it off slowly over an extended period?

[Anonymous]

Look at your credit limit for that card, and then pay it down to maybe 1-2% of that CL.  (Assuming you have that much spare cash.)  And sure, do that all at once.  There is no special benefit to doing it gradually.  

If you are interested in some other steps you can take to improve your score, we can certainly help you out with that.

[MT936]

I would pay balances in full to avoid interest as there are no benefits in carrying balances from month to month

[Anonymous]

Thanks very much for the prompt and very helpful replies.   I'll follow the suggestions and pay off the card ASAP.

[Anonymous]

There are a number of other things you can do to improve your score (long term).  For example, in the long game you need more than one credit card.  FICO views a profile with only one card as "thin."

Let us know if you want more specifics about what you could do.  Best...

[Anonymous]

Excellent help here with board members generous with their time and expertise. Good luck!

In my wallet: Venture 15k; Barclay Ring 12.5k; Discover 10k; PenFed Platinum Rewards Visa 10k; PenFed Promise 10k; CareCredit 7.7k; Amazon Store Card 5k. QS 5k; BA Travel Rewards 3.5k; BA Travel Rewards 3.5k; BA Platinum Visa 2k; Barclay Apple Rewards 2k. Total Credit: 86,200. 7/2-FICO: EQ - 788; TU - 779; EX - 690; Utilization: 12%; GOAL: 780 across the board then 800 across the board. Inquiries: EQ: 7 TU: 6; EX 3; Chapter 13 seven years May, 2015. Reset my garden date to 7/7. Gardening until further notice.

[takeshi74]

It really doesn't matter.  If they're going to balance chase you they're going to balance chase you.  You're not doing yourself any favors by keeping your utilization higher for a longer period of time.  Short term high utilization generally isn't an issue but prolonged high utilization can lead to adverse action.

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@Anonymous wrote:

My urrent FICO score is ~730.

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Keep in mind that there are 3 CRA's and many FICO models.  For a given model you probably have 3 scores (aside from the ones that are CRA-specific).  For a given CRA you have multiple FICO's.  The score that matters is whatever score (and CRA) the creditor pulls for you.  See also the Understanding FICO Scoring subforum and its stickies.

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@Anonymous wrote:

There are a number of other things you can do to improve your score (long term).  For example, in the long game you need more than one credit card.  FICO views a profile with only one card as "thin."

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This.  Lower utilization is generally better as long as you don't have all 0 balances reporting.  Fewer balances are generally better.  That's why the recommendation to only allow one balance to report at 10% or less (or $2 according to CB) is suggested for those looking to eke out every possible point when applying for new credit.