Pay Down Credit Card?

Anonymous · ‎05-07-2008

I am on the road to rebuilding my credit, and my credit score is currently 587. On the simulator, it said if I pay down my credit card by 90-100% in the next 24 months, my score could jump up 100 to 150 points! My credit limit is $250, and my current balance is $100. Is it saying to pay that $100 off in 24 months, or should I pay it off now? Should I leave the account open after that? Not quite sure what its thinkin'

Thanks guys!

haulingthescoreup · ‎05-07-2008

Gah, I wish they'd change this comment! So confusing to so many people!

Some have tested this, and we've found that if you have a balance, pay it down to under 10% as soon as you can, and then keep it down for 2 years.

This message is a combination telling you to reduce your util (balance owed divided by credit limit) and that if you keep your nose clean for the next 2 years, you scores should climb steadily until reaching somewhere in the range they give you.

BTW, if they project something like 740 - 760, think 750. Go for the middle of the range. And this number isn't guaranteed, but it's reasonable estimate. It will change if you pick up more accounts (could go up or down), have a late reported (will definitely go down), get rid of an old derogatory (could go up or down.)

The natural course of scores is to float upward over time.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

Anonymous · ‎05-07-2008

Ok. Thanks! I'll send off a payment to take it down below 10% right now... I'll leave a $20 or so balance... good?

Also, when I pay it down to $20, then what? I have to continue making SOME payment, right? the minimum? Do I just charge it up to back around $20 again? *confused*

Message Edited by talntid on 05-07-2008 04:10 AM

MattH · ‎05-07-2008

@Anonymous wrote:
Ok. Thanks! I'll send off a payment to take it down below 10% right now... I'll leave a $20 or so balance... good?

Also, when I pay it down to $20, then what? I have to continue making SOME payment, right? the minimum? Do I just charge it up to back around $20 again? *confused*

Message Edited by talntid on 05-07-2008 04:10 AM

On my cards, I think if the balance is under some small amount like 25 dollars that simply becomes the minimum payment.

TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
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BungalowMo · ‎05-07-2008

Pay it to zero if you only have the 20 or so balance. Keep it open! Older accounts are looked upon favorably. Use it now & then to go out to dinner....pay it up when bill comes in.

Light usage with low balances are a good thing.

BK 7 discharge 06.24.2020 No Fico score at all.