Savings or Pay Down Card?

Anonymous · ‎01-02-2012

Trying to build credit.

If i have anough savings to pay off my Credit Card... is that the most effective method to positively improve credit score?

Sorry so new to this!! )

Happy New Year!

RobertEG · ‎01-02-2012

Does the savings account pay a higher interest rate than the CCs? That is the financial side.

On the credit scoring side, money in the bank is unseen by FICO, and in the interim, your util would remain higher.

Unless the $$ in the bank is also a comfort zone for having available cash if needed or you have a super interest rate savings account, I would pay as soon as the $$ is available.

IOBA · ‎01-02-2012

IMO, pay off the cc! Not having to worry about monthly debt is sooo nice!

Once the cc is paid off, save, save, save! Build an emergency fund. Pay cash as you go (use the cc, but pay it off in full each cycle).

Anonymous · ‎01-03-2012

Thank you!

Anonymous · ‎01-04-2012

@IOBA wrote:
IMO, pay off the cc! Not having to worry about monthly debt is sooo nice!

Once the cc is paid off, save, save, save! Build an emergency fund. Pay cash as you go (use the cc, but pay it off in full each cycle).

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