Does paying off your credit card help your credit score?
I have a credit card of a limit of only $200. My credit score is poor right now I don't have much reporting to my credit. If I pay off my credit card will it help my credit/credit score go up?
Public Comments
- oh yes it will help - go for it
- Yes, it will.
- Pay it off, but don't close the account, if you close the credit card it will actually hurt your credit score
- Yes! The more you use it and pay it off the more credit history you gain, which is a good thing...just make sure that you do not keep your card with a balance of more than 50% of the limit. Every month it is close to the limit it will ding your credit unless you pay it off every month!
- Paying this off could give a good FICO boost as you'd be cutting down your utilization factor. This boost is assuming no other factors that are giving you a low score: like late pays, charge-offs...etc.
- yeah-but your credit score would depend on how often and the amount of each payment. Paying it off at once doesnt tell anyone that you can be responsible each month and pay that amount. I think it is best to pay it in smaller amounts each month than all at once because you need some kind of history for your credit score to be judged from.
- Consistantly paying on any account can only help. It's when you miss payments or go over 30% of your available balance that hurts your credit rating. Best bet, never carry a balance. Pay it off. If you don't think that you can pay it off, then don't buy it. Exceptions are the doctor and food from the grocery store.
- You should pay DOWN he debt no pay it off if you carry a balance it shows that you are using credit wisley. Ideally you should have a limit of 200. you should carry a balance of $50. This shows that you are using credit smartly now and that you don't max out your loans. Also pay on time for months and you will see your score increase. (on the own side you may see your score decrease for the first month or 2 because you are opening new accounts) But dont get discouraged. Kepp building credit by paying on time.
- It might. However, I would recommend paying your debt DOWN but not completely OFF. The credit bureaus actually like to see you carry a small balance here and there, as long as you're not close to maxing out on your credit limits. I think you will find this site to be very helpful... http://creditscorerescue.com
