paying down credit card debt

[noobafterbk]

so i.wanted to see if there is any benefit from paying down a single cc util from 40% to 20% in one payment or is multiple smaller payments seen by fico as more beneficial activity

$1000 paid is one lump sum prior to next statement cut

$1000 paid in 5 x $200 prior to next statement cut

[Anonymous]

I don't think it really matters. Not certain though.

[Anonymous]

It makes no difference to FICO.

[Ghoshida]

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@noobafterbk wrote:
so i.wanted to see if there is any benefit from paying down a single cc util from 40% to 20% in one payment or is multiple smaller payments seen by fico as more beneficial activity

$1000 paid is one lump sum prior to next statement cut

$1000 paid in 5 x $200 prior to next statement cut

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FICO scoring will not be different.

However lenders on seeing your credit report will be able to see a large payment ($1,000) in the first case vs. a small payment ($200) in the latter. Doesn't matter because you're paying before statement cut but otherwise I've had analysts ask me why I make small payments.

Also, some banks put a limit on the number of payments you can make through their system per month. If you hit that barrier, you will have to use your checking account's bill pay system to push payment to the credit card.

[AeroKrix]

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@noobafterbk wrote:
so i.wanted to see if there is any benefit from paying down a single cc util from 40% to 20% in one payment or is multiple smaller payments seen by fico as more beneficial activity

$1000 paid is one lump sum prior to next statement cut

$1000 paid in 5 x $200 prior to next statement cut

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Both methods are equal. There's a section on your report that has "actual payments" that lists all of your combined payments for that statement cycle. There is no mention of "number of payments"

[noobafterbk]

thank you for all of the excellent info

[Anonymous]

Thank you for this information! Much appreacited! I just joined tonight and look forward to building my credit with the community! 

[Anonymous]

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@Anonymous wrote:

Thank you for this information! Much appreacited! I just joined tonight and look forward to building my credit with the community! 

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@Anonymous,

Welcome to the forum.