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asked: Which one will increase FICO faster-Pay credit card balance in FULL OR leaving some balance behind?
| Pay credit card balance in full |
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8 |
| Pay credit card balance in several months |
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14 |
| Total Votes |
22 |
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aby
Joined: 29 Jan 2009
aby's page
Posts: 33
89 Magic Points
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Subject: Which one will increase FICO faster-Pay credit card balance
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Fri Feb 27, 2009 1:18 pm
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| i think paying balance in several month will definitly increase the fico scores. if you have a good credit history they can judje you and your credit score can increase. |
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Taffy
Joined: 23 Feb 2009
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Posts: 28
1174 Magic Points
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Subject: Which one will increase FICO faster-Pay credit card balance
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Sat Mar 07, 2009 1:59 pm
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| i don't know |
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birdfan83
Joined: 12 Mar 2009
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Posts: 10
370 Magic Points
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Subject: Which one will increase FICO faster-Pay credit card balance
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Sat Mar 14, 2009 5:54 pm
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| i need help in this topic! |
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Mary
Joined: 06 Jul 2006
Mary's page
Posts: 730
17413 Magic Points
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Mon Mar 16, 2009 9:03 am
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I think that if you pay off the balance in full, you credit score will improve more that if you pay it off in monthly installments. This is because, when you pay it off in full, not only your credit history improves, but also the "amounts owed" factor that contributes 30% in your FICO score improves. But if you pay off the debt in monthly payments, only the credit history improves. So I think that you should pay off the debt in full in order to improve your credit score.
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Where there's a will, there's a way !! |
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ermis
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Subject: increase fico
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Tue Mar 17, 2009 2:03 am
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| about how much a month does your fico score increase when you start pay off all your credit cards |
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carol
Joined: 27 Jun 2006
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Posts: 1308
28489 Magic Points
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Tue Mar 17, 2009 3:43 am
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It is very difficult to tell you by how much your credit score will increase if you start paying off your credit card debts, because it is very difficult to assess the algorithm through which FICO calculates its scores. But if the account is delinquent or has been charged off and you pay off the debt, your credit score will not increase, unless you make the creditor agree to pay for deletion agreement.
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Paul
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Subject: my opinion
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Mon Mar 23, 2009 11:58 am
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I have followed my credit since establishing it a few years ago very closely and have read up alot about it as well. This is all my opinion and I feel it is very accurate against what some others have stated here.
1. Your credit card company reports 2 main things each month 1 - the balance on your most recent statement and 2 - if you paid your bill on time. With this in mind I don't believe leaving a balance on will help you anymore than paying it off in full. I have 3 credit cards which I only use for normaly everyday purchases. 1 for gas 1 for tolls and 1 for groceries and entertainment. This ensures I never build up a huge balance I cannot pay back. I then pay them in full once my statement is posted.
2. Since about 30% of your score is based on your credit to debt ratio one way to boost your score in one month for the purpose of maybe you want to apply for a loan and would like a better interest rate is to increase this rate the previous month or two. You can do this 2 ways 1 - make purchases on your card and instead of waiting for your statment if say it comes out on the 20th pay it off in full on the 15-18th this way your credit card company will start report a payment but will also report a zero balance or 2 - call or visit your bank or CC company to increase your credit limit. Both of these options are easy ways to improve your score almost over night for the purpose of applying for a new loan. I have used both options and done everything stated here and verified they work.
I always recommend paying off in full since then you won't have to worry about any APR being applied and you will still build your credit as fast as someone that lets a balance sit. The main thing to remember is you must put purchases on the card each and every month so you have a payment to be maid. |
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Souks
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Tue Mar 24, 2009 9:04 pm
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Any of those option will raise your score every month, but the question is which one will raise your score the fastest.
To do so, spend up to 30% of your credit limit and divide that number by 3( 3 months payment). Then pay 1/3 of the payment to bring it down to $0 on your limit. Your score will jump 20 to 30 points per month depending on your credit history. If your credit history is less than 3 years total of all cards you have than this method will not work best for you.
(This is how I go my fico score up to 608 to 801 in 6 months.)
If you have a situation that you have 30% or up to 50% credit limit( for over 6 months or more) and still have not paid it in full, I advise you to pay it off in full to boost your points 40pts up to 80pts depending on your credit history.
Last thing is if you spend 10% and paid off exactly what you spend per month, your points will only boost up 5 to 16 points average. again depending on how long your average credit length(history) of all the cards you have. Let say You have a card that is 6 years old and a 2nd card that is 1 years old then your average is 3 years. Then you have a good credit history. To have an excellent credit history, you need 6 to 12 year average credit history.
(this is assuming you had no late payments or any bankruptcy against you) |
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GarySnober
Joined: 08 Apr 2009
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Posts: 67
6 Magic Points
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Thu Apr 09, 2009 12:31 am
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| Very good post as these are question asked by many on a daily basis. The best way to to increase your fico is. Pay your bills on time, Dont exceed 30% of your entire credit limits. Dont be late. Paying in full is great but a big piece of the score is credit history. |
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john
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Subject: credit card apr higher rate
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Wed Apr 22, 2009 5:11 am
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hi ,
about if the credit card Apr are higher and trying to work with to lower it ,and they're not willing to lower that what you want . Can you pay this
balance and close it since they're not nice to you ? |
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jp69142000
Joined: 25 Apr 2009
jp69142000's page
Posts: 3
63 Magic Points
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Subject: Which one will increase FICO faster-Pay credit card balance
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Sat Apr 25, 2009 3:27 pm
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| paying your balance in full always ups yor scoe.your debt to credit ratio at 0 means you are not stressed for cash. |
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carol
Joined: 27 Jun 2006
carol's page
Posts: 1308
28489 Magic Points
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Mon Apr 27, 2009 10:30 am
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Hi John
Yes, you can definitely pay off the credit card debt in full, but if you close your card after paying off the debt, the credit history that you have build on the card will be lost and so your credit score will come down. I think that, you should keep the card open after paying off the debt, if you have never been delinquent on the card.
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Mary
Joined: 06 Jul 2006
Mary's page
Posts: 730
17413 Magic Points
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Mon Apr 27, 2009 10:45 am
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If you pay off your debt, the "amounts owed" factor which contributes 30% in your credit score improves and so your credit score rises. However, if you close down the account after paying off the debt, the "credit history" factor that contributes 35% in your credit score goes off from your report and so your score gets lowered. So I think that if you can afford to maintain the credit card, you should keep the card open. However, you can prefer not to use the card due to its high interest charges.
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Where there's a will, there's a way !! |
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Hawk
Joined: 07 May 2009
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Posts: 4
148 Magic Points
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Subject: Which one will increase FICO faster-Pay credit card balance
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Fri May 08, 2009 12:33 am
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| I don't really care any more. I refuse to worship at the altar of FICO and will NEVER use credit again. |
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Firang
Joined: 28 Apr 2009
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Posts: 59
0 Magic Points
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