topic Pay off Credit Cards in Full or Gradually? in Understanding FICO® Scoring

Pay off Credit Cards in Full or Gradually?

Anonymous — Sun, 19 Oct 2008 18:09:46 GMT

I currently have 1500.00 on one card and 7500 on another card. I have come into some money and I want to pay them off. Is it better to pay them off in full or to pay them off in full over a few months. What will benefit my score more? Thanks for your help.

Re: Pay off Credit Cards in Full or Gradually?

Anonymous — Sun, 19 Oct 2008 18:37:37 GMT

Well that would depend on a few different things.

What are your credit limits?

Are there any other credit cards that don't have a balance right now?

Do you have a young credit history?

Im pretty sure there is missing information before anyone could give good advice.

Re: Pay off Credit Cards in Full or Gradually?

MidnightVoice — Sun, 19 Oct 2008 18:48:32 GMT

@Anonymous wrote:
I currently have 1500.00 on one card and 7500 on another card. I have come into some money and I want to pay them off. Is it better to pay them off in full or to pay them off in full over a few months. What will benefit my score more? Thanks for your help.

Paying them all off at once will boost your score due to low utility - unless the CLs are in the many tens of thousands!

Then time will boost your score more!

Re: Pay off Credit Cards in Full or Gradually?

Anonymous — Sun, 19 Oct 2008 22:25:23 GMT

You want to let a small balance report on one card, but the best move is to pay off the amount you have been revolving in full.

Re: Pay off Credit Cards in Full or Gradually?

Anonymous — Mon, 20 Oct 2008 03:01:53 GMT

Pay the balance off in full. Get rid of it! Don't let them accrue interest.

Dan

Re: Pay off Credit Cards in Full or Gradually?

GFer — Mon, 20 Oct 2008 04:10:59 GMT

Pay them off.

Earn fico points, save money, breath easier!!