I bought a Dell computer using Dell's "preferred Account" program (Dude! I bought a Dell!!!), which is a form of revolving credit. Since the APR is an outrageous 24%, I will pay this off quickly, but the question is, how soon can I pay this off and still enjoy a bump to my FICO score? Should I leave it on for a month, and then pay it off? Or should I pay most of it off now, leaving a small balance which I slowly pay down for a year? I read here somewhere that paying off installment/revolving credit lines over time increases your score, so I want to get the biggest bump I can without getting soaked by that loan shark rate. Any help would be appreciated!
Their phone rep thinks they do report, but I tend to trust the experiences of someone who posts here a little more that a phone monkey (no offense to phone monkeys; I've been one myself and might end up one again). It also bugs me that they don't offer an electronic payment option. I'm dropping a check in the mail today to pay them off. One thing I do feel confident about is that they make decent computers, even if that kid in the commercials is annoying as heck.
Last year, hubby took advantage of Dell's "90-day, no interest" plan. He took an immediately (small) hit to his FICO when it showed up that next month. Then he paid it in full just days before the 90-day expiration (essentially getting a $3,500 interest-free loan that didn't tie up money we needed elsewhere). So 3 months from purchase to payoff was enough time for Dell to report (yes! They reported it to all 3 bureaus). About 2 months after that, with Dell reporting "$3,500, paid as agreed, $0 balance", his FICO kicked up about an average of 12 points higher than it had been before Dell first reported the credit line. Hope that helps. BTW, the credit doesn't state "closed" or "paid in full", so once it's paid off, you can use it again in future.
For $3,500, he must have bought a h3|| of a system! I didn't qualify for the no interest for 90 days thing, so I will pay most of it off now, and leave a tiny balance to pay down over time. 24% is just too sickening to pay (even for a Dell, dude!) Thanks to all who posted.
I'm just amazed that the word 'Dude' is still popular after 20 years. Takes me back a few....gag me with a spoon....totally.
He did! It included a 40G hard drive, DVD, 526K Ram, 17" monitor, color printer, scanner, digital camera. He uses it for business (he's a custom homebuilder) and it was a total write-off (interest free!!)
got a dell last year - before the dude commercials btw - and they report - in my case - only to experian
