topic Re: paying down credit card debt in Understanding FICO® Scoring

paying down credit card debt

noobafterbk — Wed, 13 May 2015 14:43:56 GMT

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

Re: paying down credit card debt

Anonymous — Wed, 13 May 2015 14:47:40 GMT

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

Re: paying down credit card debt

Anonymous — Wed, 13 May 2015 14:47:47 GMT

It makes no difference to FICO.

Re: paying down credit card debt

Ghoshida — Wed, 13 May 2015 14:52:19 GMT

@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

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.

Re: paying down credit card debt

AeroKrix — Wed, 13 May 2015 14:57:47 GMT

@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

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"

Re: paying down credit card debt

noobafterbk — Wed, 13 May 2015 15:28:10 GMT

thank you for all of the excellent info

Re: paying down credit card debt

Anonymous — Thu, 14 May 2015 07:03:34 GMT

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

Re: paying down credit card debt

Anonymous — Thu, 14 May 2015 12:44:22 GMT

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

@Anonymous,

Welcome to the forum.