Effect of paying off smaller accounts on credit score

Any account you can pay off will benefit your score.

Thanks for your response, mom of twins. :) I look forward to seeing an effect on my score! :)

Yes, your payments really boost up your credit scoring system. You will see a greater increase in your scores if you pay it at a couple of months rather than paying the same account over a period of six months.

When you will be paying your larger account totals, try to pay it with larger payments so that you take shorter time to pay off the debt. This will also save the amount of interests that would have been added and you will be always contributing more towards the principal amount.

Be dedicated towards your payments as nothing better than this improves the credit scoring system.

Thanks David! I plan on paying the smaller ones now, and as things start rolling at work, I will be paying the larger ones in 1 or 2 payments, as I will finally be able to afford it. Thank you for your response!!

Tip: You will be able to save money if you are able to reduce your monthly expenses. Perhaps, if you can live on a tight budget avoiding all the unnecessary expenses and cutting down the necessary expenses (to some extent), you will have easier time to pay off the larger amounts. Also, this will be helpful in shaping up your budgeting system. You will never land up with credit problems in the future.

I am living on a pretty tight budget as it is (lost my job) but with my new job coming up I will have no problems catching up on things. I don't ever plan on having problems like this in the future, and I will be taking every step that I can to prevent it. Things are looking up!

Waydizzy,

Good to know about your new job. Life will be on track again, trust me. Little planning and awareness can solve your problems.

Paying small debts first is a brilliant idea. This way you can repay several accounts with small balance very fast. Once all of these are paid, your score will start reflecting it and you will get kind of mental strength as well.

Then you can put more towards rest of your accounts which might hold a high balance. Do one favor to yourself; please do not incur any more debts during this period. This might delay the whole process.

Also go through this page and see what Shirley says here:

http://forums.debtcc.com/forums/begintorepair.html

Hi Brian!

I will definitely refrain from increasing my debt during this period. I only have 2 small credit cards, and I gave them to somebody else to keep unless I have some kind of medical emergency and need them, so I can't use them anymore.

:) And thanks for the link, I like reading Shirley's posts, she has a great plan going on. Hopefully soon I will start seeing results like she is!!