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Pay Down Credit Card?

talntid
New Member

Pay Down Credit Card?

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' Smiley Happy Thanks guys!
5/7/08: TU-584, EQ-581, EX-601
Own my cars.
No Debt, except 1 Credit Card with balance under $200
Message 1 of 5
4 REPLIES 4
haulingthescoreup
Moderator Emerita

Re: Pay Down Credit Card?

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
Message 2 of 5
talntid
New Member

Re: Pay Down Credit Card?

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
5/7/08: TU-584, EQ-581, EX-601
Own my cars.
No Debt, except 1 Credit Card with balance under $200
Message 3 of 5
MattH
Senior Contributor

Re: Pay Down Credit Card?



@talntid 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
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
Message 4 of 5
BungalowMo
Senior Contributor

Re: Pay Down Credit Card?

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.


Starting Score: 02/2015 TU 709 - EQ 676 - EX 729
Current Score: 12/2017 TU 779 - EQ 779 - EX 782
Goal Score: 850

Bury me in the garden...last app 07.27.17

Message 5 of 5
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