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Posted: Mon May 05, 2008 10:01 pm Subject: credit score

I dont have any late payments are am able to pay my bills. I just want to get the credit cards paid off and be done with it. Does it hurt my credit to do it this way

Posted: Mon May 05, 2008 11:24 pm Subject:

I'm not sure that I have got the right question. If you want to pay-off your cards in full, you are always free to do so. And that IMO will not affect your score. But, it would be wise for you to keep at least one line of credit open (1 credit card) and stay regular with it. It will help your score to go up.

If you apply for a loan in future, like- home or personal, the creditor would like to see your total credit pattern, such as- how much you owe, how many loans you have, have you been regular with the payments or not, how many loans are paid off till date, whether there is any default/delinquent account or not and so forth. And having no open line of credit may send a wrong message to the prospective lender.

However, its better not to have any open account than having delinquent and CA accounts on your report.

Posted: Tue May 06, 2008 12:14 am Subject:

Yes go ahead and pay off that CC but be sure to use one often. In other words you do not have to keep a balance but charge something and pay it off each month. The CC companies want you to keep a balance so they can collect interest but it will help build you credit just to use one or more and not let that balance ride. The CC will be reporting “Paid as agreed” which is always nice. Very Happy

Posted: Tue May 06, 2008 3:40 am Subject:

According to Fico's secret scoring keep balances under 30% of credit line per card and also per total revolving credit. I am in violation of this right now because I am carrying one card almost maxed out to take full advantage of a 0% balance transfer deal.

Here is my general tips.Concentrate on having a clean credit report,pay on time,and add new account on average of two per year. It is pointless to check a Fico score unless you are getting ready to make a major financial deal.

Posted: Tue May 13, 2008 9:25 am Subject:

Your score will go up if your balances on cards are less than 30%. In addition, your score will drop if your account history shortens.

Paying off and closing your CC's won't delete them from your report though, so your history would be the same.

It is better for your score to have at least one open card with a less than 30% balance. The lower the balance, the higher the score.

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