I have the opportunity to pay off most of my credit cards. Most of them right now are maxed out, but current and small limits $300-$700. I was wondering if I should pay them to zero balance or pay the balances down and keep making payments?? I am wanting to help my score the best way possible. thanks mburris
Dumb Bob doesn't know what happens to your score, but by paying off a card, you then no longer have interest to pay on that card. If you continue to use your cards for purchases, you can then use your cards that are otherwise completely paid off. If you stop using cards, in today's climate you could easily have your credit line lowered or your account closed. That may impact your score because of increased utilization.
So true happend to a friend me I dont have the greatest credit in the world it is better than it was 3 yrs ago when I started my self repair. ,But as Dumb Bod said pay them off no interest but may be canceled or credit limit lowered / dont pay them off interest but the interest would be on a lower amount hince lower payment . Me I would just make the payments we are at the mercy of the credit system you are damned if you do damned if you dont
Unless you're getting 0% APR, it makes more financial sense to pay off what you owe since you'll not be paying any interest by carrying zero balance. Your limits could go down, but you can always talk to your CC company and ask that they be raised, especially if you pay your bills on time.
In a normal day and age that would be decent advice.However in this day you risk the chances of being closed.Remember at 0% they make no money,and no body is raising cl right now!
i would just pay them down. think of having to pay the interest on your remaining balances the cost of improving or maintaining your credit. But just keep them below 65%, there is a good article about it but i can't post the link. learn about credit at blogspot.
