+1 If you can pay it off, get it done.
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
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Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.
pay it off completely if you have the funds. No need paying interest if you don't have to.
Only caveat to this is to consider how it will affect your utilization. If you have a $700 balance on a closed account and that account has a high CL, it could be having a favorable effect on your utilization. Once it is paid off, it no longer factors into your utilization. So depending on what you have going on with your other accounts, you could see a score decrease once you pay it off. For example, let's say you only have two cards, one open and the one closed. If your balance on the open account is $600 with a $1K CL, and your balance on the closed account is $700 with a $15,000 CL, right now you have total utilization of about 8%. But after you pay that closed account off, your utilization would jump to 60%.
Of course, you eventually have to pay it off and you don't want to be paying high interest. But if you have another credit app coming up, or say a mortgage in progress and you are right around a specific score that you need, you might want to wait before paying it the rest of the way off.
Starting Score: ~500 (12/01/2008)