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Pay off entire balance or pay monthly payments to raise?

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hoffma2



Joined: 24 Feb 2009
hoffma2's page
Posts: 1



43 Magic Points

Subject: Pay off entire balance or pay monthly payments to raise?
 
Posted on Tue Feb 24, 2009 3:29 am  

My credit score is under 600. I owe about $1,000 on my Best Buy card. I was recently "threatened" because for two months my payments were late. I now have the money to pay off the entire bill with no problems in one lump sum. Will that raise my credit score, or would it help my credit score more if I make monthly payments of $100 each ON TIME until the bill is paid off. I plan on closing this account as soon as it's paid off. Is that wise?
goodnatured



Joined: 03 Nov 2007
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Posts: 3931



389 Magic Points

 
Posted on Wed Feb 25, 2009 2:28 pm  

Closing it will lower your score, it lowers your available credit, there fore it lowers your score.
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fireyone



Joined: 26 Feb 2008
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Posts: 4246



96 Magic Points

 
Posted on Wed Feb 25, 2009 6:35 pm  

Hoff, do not close the card. Good natured is correct it will actually lower your score. Any card that can show a long credit history and a good one can only help your score. A couple late payments should not effect your score very much but closing it would. You cna pay it all off at anytime. Making monthly payment or jsut paying at one clip is not what really builds your credit...its the lenghth. I would pay it off and then put the card up if you do not want to lower your score. Just remmeber sometimes when a card is inactive for a period of time the lender will actually close the card themselves. Making a samll purchase here and there and paying it off would help avoid this and build you credit even more.
scott

scott

Joined: 28 Jun 2006
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Posts: 446



10890 Magic Points

 
Posted on Thu Feb 26, 2009 12:47 pm  

If you make monthly payments of $100 each, your score will increase much more than if you make the entire payment at a time. This is because if you make monthly payments, your credit history will improve, but if you make one time payment, your "amounts owed" factor would improve. Now credit history contributes 35% in your credit score while amounts owed contributes 30% in your score. So credit history will dominate the "amounts owed" factor and so your score will improve if you make monthly payments.
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SCOTT

Use your credit account responsibly and enjoy a debt free life.
Mary

Mary

Joined: 06 Jul 2006
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Posts: 684



17420 Magic Points

 
Posted on Thu Feb 26, 2009 12:53 pm  

You should never close an old credit card account if it has a good credit history because closing the account will remove the credit history from your report and your credit score will get lowered. Even if you do not wish to use the card, keep it open till you build up a good credit history on a new card.
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Whitersevo
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Subject: credit
 
Posted on Sat Aug 15, 2009 2:03 am  

is there any good credit repair company's?
TINAYOU
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Subject: LEASE UP AND NEW LEASE W/NEW LANDLORD
 
Posted on Fri Mar 05, 2010 7:03 am  

MY LEASE UP AND SIGN A MONTH TO MONTH LEASE THE SAME WHICH THAT TAKE EFFECTIVELY TIL MARCH1,2010,AND THE NEXT DAY I PUT IN MY 30 DAY NOTICE AND LANDLORD SAY I HAVE TO PAY APRIL RENT IF IM NOT OUT OF UNIT BY THE END OF MARCH.LUCKLY I FOUND AND SIGN NEW PLACE AND PAID NEW RENT.BUT OWE MARCH RENT I KNOW I WOULDN"T DO WHAT I"M ABOUT TO DO NOT PAY LAST RENT EVENTHO I PAID RENT ON TIME FOR 12MOS.I KNOW THEY WILL PUT A NOTE ON MY DOOR ABOUT LATE FEE.BUT MY NEW PLACE WANT BE READY UNTIL MONDAY.CAN I PAY WHAT I OWE ANYTIME WHAT I OWE UNTIL BALANCE PAID OFF WITHOUT IT AFFECTING WITH MY CREDIT OR RENTAL HISTORY FOR FUTURE PURPOSE.CAN THE LANDLORD CALL NEW LANDLORD THAT I HAVEN"T PAID LAST MONTH RENT AND GET EVICTED FOR IT.
Aaron

Aaron

Joined: 08 Feb 2010
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Posts: 2632



48565 Magic Points

Subject: lease up
 
Posted on Fri Mar 05, 2010 7:34 am  

Hi,

If you are not able to pay the rent now itself, you can talk to your landlord, and make him understand the problem. If you don't pay the debt, the landlord may send this to a collection agency. This may in turn get reported to the bureaus. Discuss your problem with the landlord, mention that you have always made regular payments.

Hope this helps.

Regards,

Aaron
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crorkz
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Subject: MYgMKsIYoNunF
 
Posted on Mon Aug 04, 2014 10:31 pm  

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