Comments on: Credit Card Balance: Make Payments or Pay in Full?

By: PT

PT — Sat, 16 May 2009 23:35:02 +0000

@Misty – It’s always more beneficial for you to pay off the entire credit card balance every month. This improves your available balance ratio (credit used / credit available), and still shows you can make consistent payments.

There is no reward in the credit scoring system for carrying a balance. Carrying a balance only means you’re paying interest charges.

By: Misty

Misty — Fri, 15 May 2009 21:52:07 +0000

I just read this article, and I really appreciate it, it is very helpful in terms of savings versus debt. But my question is about credit. I have a bad credit score because I have no credit, so now I have a credit card and I am trying to establish good credit. Would it be better to make smaller payments or pay entire balance every month in establishing my credit?

By: PT

PT — Fri, 13 Mar 2009 20:19:05 +0000

@Aaron – Just pay it off. Get rid of that debt.

Paying it off in full or over several chunks will not matter for credit score. In fact, it should improve your score faster by increasing your available balance.

Have you been making regular payments? If so, you’ve already established a solid record of making payments.

Paying it all off will improve your score by improving your available credit balance.

Please also consult http://www.nfcc.org/. They my have more info for your specific situation.

By: Aaron

Aaron — Fri, 13 Mar 2009 19:38:58 +0000

I have been fortunate enough to come across a some of money that will enable me to pay off my credit cards completely. Since I carry a large balance on my card, I was hoping to pay it off in one payment. Some people are telling me it would be wise to pay it off, and others are telling me it would have a negative effect on my credit score to not pay it off with multiple medium size payments. Which is really better, or does it even matter?

By: PT

PT — Tue, 20 Jan 2009 20:07:41 +0000

@Pors – You are quite welcome. I have enjoyed seeing this post do so well with Google visitors really looking for answers.

By: Pors

Pors — Tue, 20 Jan 2009 18:53:09 +0000

I would like to thank the author for writing such an informative article and others for participating and addressing some of the questions. I know the article is from last year, but its content still very informative. Thank you.

By: PT

PT — Tue, 13 Jan 2009 06:37:24 +0000

“should I use THAT as my way of deciding which one to pay off first…”

Yes! Definitely pay off the card that expires first, then move to the second.

If you can’t pay it by the due date, look for a new 0% to transfer the balance to. Just make sure the transfer fee isn’t more than the interest you would pay to pay to just pay it off a bit late.

By: denise

denise — Tue, 13 Jan 2009 02:42:09 +0000

I read about the plan that helps you become debt free by layin gour yoru credit card balances and putting most of your $ each month to the card with the highest interest rate, and minimums on the others. Then when the 1st card is paid off, you use that money to put toward the next card.. etc.

Ok.. I get that.

My question is this. I currently have 3 0% cards with hefty balances. I pay more than the minimum on each each month. The 0% promotion expires at different times this year… one in July, one in Sept.. you get the drift.. So.. should I use THAT as my way of deciding which one to pay off first… or should I prioritize it by balance amount? HELP!

Thanks in advance for any help you can offer with this.

By: PT

PT — Mon, 10 Nov 2008 04:15:24 +0000

@jen – you will have to pay $250 to get it all back.

By: jen

jen — Mon, 10 Nov 2008 04:02:44 +0000

Say i have a credit limit of 300.00 and spend 250.00 and the min. payment is 15.00 i pay the 15.00. Will all of the 300.00 go back on the card or will i have to pay the 250.00 to get it all back?