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paying off credit cards?*
i have money to pay off my credit card debt...my question is...will it drop my credit score if i make one lump sum payment to pay off the card? should i wait and just pay larger amounts over some time?
Answers:
1) It will improve your score to pay off your debt even if it is in full, all at once. You will hurt your score if you then close the accounts. Leave them open and occasionally use them and your score will probably stay healthy. Of course there are no guarantees because the credit agencies are allowed to make up any rules they like at any time, kind of like credit card companies. They've got us by the short-and curlies though.
2) no it won't lower your credit score to make one lump sum payment. That is the better thing to do instead of making payments over periods of time. Paying over time you get charged interest on your balance. Just pay it off, but don't cancel it,,, that does lower your credit score.
3) Paying down your credit cards, regardless if done fast or slow, will only improve your score. One of the big factors in your score is a ratio of credit balance vs. credit available. The lower your credit balances, the better your ratio is and the higher your score will go. There is no reason not to make a lump sum payment.
4) it will actually boost your credit score
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