Credit card payments to help with credit score

[credit73]

Thanks in advance.

My credit score is 640 for various circumstances. Now i'm trying to build it up once again, ASAP. I have $2200 credit card debt. Will it be faster to increase credit score if I pay the full $2200 one shot or will it make a difference if i do increments in a month?

Peace.

[LuckyRobin]

The balance of your credit cards is reported to the credit reporting agencies as of the last day of each month. So making 4 weekly payments won't make a difference over paying one monthly payment. It's just not reported that way. Then after it is paid off it'll take a month to see any difference on your reports.

[Nutria]

Thanks in advance.

My credit score is 640 for various circumstances. Now i'm trying to build it up once again, ASAP. I have $2200 credit card debt. Will it be faster to increase credit score if I pay the full $2200 one shot or will it make a difference if i do increments in a month?

• At what interest rate? (Compared to effectively 0% in your checking/savings account.)
• And your Emergency Fund: will that $2200 one shot payment tap it out (which is a Very Bad Thing)?
• Have you stopped using your credit cards?
• Lastly, credit scores don't change quickly. Consistency is what they want to see! (Set up automatic debt and utility payments so that you're guaranteed to never miss one.)

[disneysteve]

Welcome to the site!

Stop worrying about your credit score and start worrying about your finances.

When should you pay off your credit card debt? As soon as you possibly can. You should never carry a balance just in hopes of raising your credit score.

You say you want to build your credit score ASAP. Why? The main reason to care about your score is because you are planning to borrow more money. If that's the case, are you really in a situation where taking on more debt is a good idea?

If you share more about your finances, we'd be happy to give more advice if you'd like.

[bjl584]

Thanks in advance.

My credit score is 640 for various circumstances. Now i'm trying to build it up once again, ASAP. I have $2200 credit card debt. Will it be faster to increase credit score if I pay the full $2200 one shot or will it make a difference if i do increments in a month?

Peace.

If you have the ability to pay it off all at once do so. Carrying a credit card balance is never a good idea unless it is at 0% and is part of a larger financial strategy.

As others have said, don't focus on your credit score. Focus on your finances and your score will take care of itself. I'll give you an example. When I was younger I never paid attention to my score. For years I had no idea what it was. But, I diligently saved, lived below my means, and paid down my debt. After 5 years or so, I checked my score and it was 800.

[SethRollins]

credit score

Yes, It will increase your credit score. In future, It will help you in getting loan easily.

[GoodSteward]

For the credit side, the balance really only matters in relation to your limits. If that is more than 10% of your total revolving limits, then yes it will go up to pay it off. I have read that paying a lump sum doesn't raise it as much, however, because they see that as you got a lump sum of money, and not necessarily that you are being responsible and paying off your debt (think tax refund). I don't know how much that actually matters, but everything is judged from a risk value. Use credit karma simulator if you want. They are free, and it will help you see the approximate difference. I tried it recently to help my brother and it was right about the change that would come.

As others have stated, usually worrying about a score is for debt, but not always. My brother needed a boost just to get an apartment. He doesn't want another credit card, just needed a better score to move out on his own. I added him as an authorized user with no card access. It boosted his score 70 points on TransU, and almost 60 on Equifax. He can now move his family out of his in-laws with no money(or obligation) on my part. Win, win.

Time is the best way to build it up, but paying off the debt completely is the best way to handle a credit card (outside the rare 0% situation others mentioned).

[Nutria]

He doesn't want another credit card, just needed a better score to move out on his own. I added him as an authorized user with no card access.

Eh?

As in, "didn't give him a piece of 3.37" ×2.125 plastic"?

[GoodSteward]

Eh?

As in, "didn't give him a piece of 3.37" ×2.125 plastic"?

Right. They gave the option when I added him to send a card to use or not. I opted out, but I would have taken the card and destroyed it anyway. He has 5 collections on his credit from 2 years ago that are all credit cards ranging from 300-800$ limits. He just quit paying, while making 35-40k living with family. I loaned him my credit, but I will not cosign or give him cash.

[Nutria]

Right. They gave the option when I added him to send a card to use or not. I opted out, but I would have taken the card and destroyed it anyway.

My first thought when you wrote that you made him an authorized user without a card was that all he needs is the number to send you into bankruptcy again...