Paying down credit cards

[olemacceb]

I just received my tax return, I want to pay my credit cards down to 30% of the credit availability. I had an idea after researching a bit but am unsure this will be the best way to increase my credit score indefinitely or not. So for the month of March, for example, rather than going to submit a payment of $2691 on a credit card that has a $4000 credit limit I wanted to pay $538/ week, since there are 5 weeks in March it would 5 payments in total. Is this the best way to improve my score?

[bjl584]

Don't let the tail wag the dog.

Pay off your credit cards every billing cycle in full and keep other debts to a minimum. Your score will take care of itself.

People become obsessed with their credit scores often to no benefit.

[olemacceb]

My interest would be lower from what I understood that's why I was interested really but was unsure if that was true.

Don't let the tail wag the dog.

Pay off your credit cards every billing cycle in full and keep other debts to a minimum. Your score will take care of itself.

People become obsessed with their credit scores often to no benefit.

[Jluke]

pay off the credit card balance to $0 as soon as you can.

you fail to understand the credit score concept and it is costing you money...

[disneysteve]

Pay as much as you can as soon as you can. If you have the money, pay it.

Stop using your cards if you haven't already. Once you pay them off, never use them again unless you are 100% positive you will be able to pay the bill in full each and every month and never carry a balance again.

[disneysteve]

rather than going to submit a payment of $2691 on a credit card that has a $4000 credit limit I wanted to pay $538/ week, since there are 5 weeks in March it would 5 payments in total. Is this the best way to improve my score?

1. Forget about your credit score.

2. Spreading the payment over 5 weeks will result in you paying MORE interest. You'll save the most by sending the lump sum payment in as soon as possible.

[comicguy]

Payoff in bulk is best

[Gailete]

Pay off in full if possible, with the next best thing as fast as possible, and even if making barely the minimum, round up to the next highest dollar amount, or $5 amount.

If you have credit card bills that you don't have the money to pay in full, makes payments as often as possible, such as if the minimum payments is $89.73, pay $25 per week, $50 bi-weekly, or $100 as early as possible before the bill is due. The sooner you pay off principle on a credit card, then your interest amount that you are paying will go down. In the OP’s idea, paying 5 times during the month won't help, but if you know you must be paying of the card over the next year, paying as soon as possible, even if partial payments and rounding up will get the bill paid in much less time than if all you do is pay the actual minimum on the due date. And don’t forget for some silly reason, bank computers take holidays off!

[msomnipotent]

I haven't heard of spreading out payments to help a credit score. The sooner you get the debt ratio down, the sooner your credit score goes up. Even then, it doesn't happen automatically. Have you tried calling the credit company and asking for a lower rate?

[dczech09]

My interest would be lower from what I understood that's why I was interested really but was unsure if that was true.

Yes, the interest that you pay would be lower, which is a good thing. Paying interest has absolutely no affect on your credit score. You could pay interest until you are blue in the face, but if you are not paying on time, keeping a sustainable balance, etc, it will not matter.

Pay off the credit card and keep it paid off. Any time you use it, pay off the balance before the due date and avoid finance charges (interest). You do not need to keep a balance to improve your credit score, and you certainly do not need to pay interest.

[disneysteve]

You do not need to keep a balance to improve your credit score, and you certainly do not need to pay interest.

I want to emphasize this. The myth that you have to carry a balance to build your score is nuts. Pay your bill in full every month on time and your score will improve over time.