Best Way to Pay Off Credit Cards to Increase Credit Score?

[Anonymous]

Hi all, I am seeking advice on the best course of action to pay off my 3 credit cards that will have the maximum positive impact on my Credit Score.

CC 1 - ~3.5k (APR 18.99%)

CC 2 - ~2K.  (APR 23.74%)

CC 3 - ~2K.  (APR 23.74%)

I am currently in a position to pay them off completely, but based on what I remembered reading here some time ago, there were strategies to use that would be better for increasing my credit score.

Do I, do some form of credit consolidation that could possibly lower my interest rate, and then pay that off over time?

Do I pay off half of each of them up front and then continue with making minimum payments until they are done?

Do I pay a certain amount over the minimum payment on each of them continuously until they are done?

I am wondering what's the best strategy with the primary goal of increasing my credit score.

Thanks in advance!

[1GaDawg85]

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@Anonymous wrote:

Hi all, I am seeking advice on the best course of action to pay off my 3 credit cards that will have the maximum positive impact on my Credit Score.

CC 1 - ~3.5k (APR 18.99%)

CC 2 - ~2K.  (APR 23.74%)

CC 3 - ~2K.  (APR 23.74%)

I am currently in a position to pay them off completely, but based on what I remembered reading here some time ago, there were strategies to use that would be better for increasing my credit score.

Do I, do some form of credit consolidation that could possibly lower my interest rate, and then pay that off over time?

Do I pay off half of each of them up front and then continue with making minimum payments until they are done?

Do I pay a certain amount over the minimum payment on each of them continuously until they are done?

I am wondering what's the best strategy with the primary goal of increasing my credit score.

Thanks in advance!

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Pay off CC 2 & 3 completely as they are the highest APR cards. Pay off CC 1 down to less than 100 by statement date and then down to 0 before the due date to prevent paying interest.

[Anonymous]

Isn't there any benefit in paying them off over time as opposed to immediately in order to "build credit"? 

[Kforce]

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@Anonymous wrote:

Hi all, I am seeking advice on the best course of action to pay off my 3 credit cards that will have the maximum positive impact on my Credit Score.

CC 1 - ~3.5k (APR 18.99%)

CC 2 - ~2K.  (APR 23.74%)

CC 3 - ~2K.  (APR 23.74%)

I am currently in a position to pay them off completely, but based on what I remembered reading here some time ago, there were strategies to use that would be better for increasing my credit score.

No, you need to pay them all off, pay all residual interest, reset the normal grace payment period then use "Azeo" method to gain  maximum Fico scores.

Do I, do some form of credit consolidation that could possibly lower my interest rate, and then pay that off over time?

Not if you have the funds to pay it off in hand

Do I pay off half of each of them up front and then continue with making minimum payments until they are done?

No

Do I pay a certain amount over the minimum payment on each of them continuously until they are done?

No

I am wondering what's the best strategy with the primary goal of increasing my credit score.

1)  Pay them all off

2)  Pay off all residual interest ( Need to call each institution and pay additional daily interest which changes every day)

3)  Let normal grace payments reset (Need a clean statement showing 0, with no money owed )

4)  Use "Azeo" following month

*( Fastest way for 1 & 2 & 3 is to pay in branch or overpay by pushing from billpay service from your bank or CU.  Example (you owe $2000 last statement date with 23.74% interest. Daily interest = (2000*0.2375)/360 = 1.32 per day.  15 days from last statement you owe 2000+(15*1.32)=2019.80. fF you push 2025 it will accomplish 1,2 and 3, following statement you will have a few dollars credit that they will refund yout or you can use your card for a little larger purchase if the card is being used.  In branch they can calculate exact number you owe and you pay the exact amount.  Let a statement from each report with zero owed, then read and use "Azeo" to see your max FICO after pay off.

Thanks in advance!

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[Anonymous]

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@Anonymous wrote:

Isn't there any benefit in paying them off over time as opposed to immediately in order to "build credit"? 

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No additional benefit. You will be delaying the score increase you will see from lowering your utilization as well as paying interest. Your accounts will age the same whether you are carrying a balance or not.

[1GaDawg85]

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@Anonymous wrote:

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@Anonymous wrote:

Isn't there any benefit in paying them off over time as opposed to immediately in order to "build credit"? 

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No additional benefit. You will be delaying the score increase you will see from lowering your utilization as well as paying interest. Your accounts will age the same whether you are carrying a balance or not.

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great advice!

[SouthJamaica]

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@Anonymous wrote:

Hi all, I am seeking advice on the best course of action to pay off my 3 credit cards that will have the maximum positive impact on my Credit Score.

CC 1 - ~3.5k (APR 18.99%)

CC 2 - ~2K.  (APR 23.74%)

CC 3 - ~2K.  (APR 23.74%)

I am currently in a position to pay them off completely, but based on what I remembered reading here some time ago, there were strategies to use that would be better for increasing my credit score.

Do I, do some form of credit consolidation that could possibly lower my interest rate, and then pay that off over time?

Do I pay off half of each of them up front and then continue with making minimum payments until they are done?

Do I pay a certain amount over the minimum payment on each of them continuously until they are done?

I am wondering what's the best strategy with the primary goal of increasing my credit score.

Thanks in advance!

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Best thing you could do is have 2 of them report a zero balance, and let the other one report a small balance before you pay it off.

The card you use to show the small balance should not be a Chase card or a store card.

[SouthJamaica]

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@Anonymous wrote:

Isn't there any benefit in paying them off over time as opposed to immediately in order to "build credit"? 

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Absolutely not.

[Anonymous]

Those that are saying for the OP to implement AZEO for maximum score gain are correct, but the OP shouldn't "leave" a small balance on one of his cards to achieve this.  He should pay off all of his cards and then allow a small balance from a new purchase to report.  Leaving a balance means continuing to pay unnecessary interest, something the OP doesn't need to do as he's in a position to pay off all the debt he said.  If he has made new purchases on the card he wishes to leave a reported balance on, the advice should be to pay off an amount that falls in between his last statement balance and his current balance, preferably closer to the current balance.

[Shooting-For-800]

I would pay them down evenly in ratio of utilization.

In other words, the limits matter for each balance.