question about paying off a lot of accounts

[rootpooty]

I need some advice.  Ive been gone for a while.  Trying to garden would be the easiest way to put it.  Its hard to garden and browse this forum seeing a happy applicant getting approved everyday and me itching to apply for another account.

Long story short I've racked up about 23k in credit card debt and now I have the chance to pay them off in full.  What will happen after that?

Will creditors see that I carried balances for a little over a year?  I know that I will continue to grow with NFCU so no worries about that but mainly speaking in regards to new credit accounts that are more suited for my needs then what I have now.

Thanks for any advice 

[Shogun]

Why pay the interest if you don't have to?  I'd pay them off and breathe a sigh of relief!

[takeshi74]

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@rootpooty wrote:

Long story short I've racked up about 23k in credit card debt and now I have the chance to pay them off in full.  What will happen after that?

Will creditors see that I carried balances for a little over a year?

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A creditor can if it performs a manual review but it doesn't matter for scoring purposes.  Utilization is only based on current reported balances.  No ideal what will happen,  if you've been at high utilization for a long time and only making minimum payments balance chasing may be possible.  Regardless, you'll want to pay off that 23K if you can.  It certainly isn't helping your utilization.

[randeman]

I just paid off $13,000 in credit card debt.  Trust me, you will feel soooooooooo much better.  And your score will reflect it.

[EW800]

Amen to that! For several years I was literally owned by the credit card companies. After a couple of years of very hard work, it feels so good to have it all paid off!

[rootpooty]

Thanks guys.  Mainly worried under manual review.   Is it going to hinder my approval that they see that I carried a balance this high for a bit I'm sure that it could quite be in my favor due to the fact that I paid it all back.

Thanks again

[Revelate]

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@rootpooty wrote:

Thanks guys.  Mainly worried under manual review.   Is it going to hinder my approval that they see that I carried a balance this high for a bit I'm sure that it could quite be in my favor due to the fact that I paid it all back.

Thanks again

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Look at it this way: underwriting prefers paid collections to open ones, by the same token any debt which is repaid is better in their eyes.

Also carrying a balance for a while, is a profit motive too for lenders, that counts for something.  I wouldn't sweat it, better to just pay it and go on with life instead of continuing to carry the balance at ~20% or whatever.

[rootpooty]

I'm constantly carrying balances. Main reason I paid the accounts off was I'm going for a mortgage next month and wanted zero debt reporting

[youdontkillmoney]

if you can pay it ALL off, DO IT! why pay all the interest but more important, your stresswill be reduced and you will FEEL a whole lot better. It will be good for your credit score, all other things equal.

[rootpooty]

Just paid them all off its a great feeling