>Okay so i am in credit card debt of about $1500 now.
What does that mean — that you've charged $1500 on your credit card or you're carrying a balance of $1500 over multiple months? The former is not credit card 'debt'.
>I heard paying it all at once can lower your credit score?
Even if it *did* lower your score, paying 25% interest in exchange in downright silly.
>Do i pay it in full or make payments on it?
In full, once a month, before the due date.
Your credit score (e.g. standard FICO) is comprised of the following factors. The weights of the factors vary slightly depending on which specific type of score you're talking about (yes there are different types of scores that different lenders use) but in general it looks like this:
* Payment history: 35% of your credit score (you always want to pay on time or ahead of time, no late payments)
* Debt-to-credit utilization ratio: 30% of your credit score (lower utilization the better; no need to carry a balance)
* Credit history: 15% of your credit score (keep your old accounts open; be selective about opening new accounts)
* New credit: 10% of your credit score (too many new accounts open within a short time, typically the last 18-24 months, will be a flag against your score)
* Credit mix: 10% of your credit score (ratio of credit cards, auto loans, mortgages, etc.)
Notice there is no factor here that rewards carrying a balance. So don't do it. Carrying a balance just means you're giving away money to the bank. Your goal is to earn interest, not to pay it.
If you charge anything to any credit card, you should always, always pay the bill in full every month you get one. Never carry a credit card balance for any reason. You will not be paying any interest on your charges then.
Never carry a credit card balance.
Pay it off every time you get the monthly bill.
Every time.
Paying it doesn't lower your credit score.
NOT paying it in full will lower your score.
>Do i pay it in full or make payments on it?
You are already "making payments." That is why you are in debt.
Pay it all off now in full. Stop paying insane interest.
Stop believing these convoluted and exaggerated old wives tales.
Paying 25% interest is not worth having an ever so slightly teeny tiny higher credit score (if at all).
Always pay your credit card in full. I have never not pay it in full. I use my credit cards for my business and between all of the my credit card bills I average 70 grand a month.
Do not use a credit card unless you can pay it in full.
But if you must it should be for an emergency only. Although if you do it regularly it's no longer an emergency.
Never spend money you don't have. Never....
> I heard paying it all at once can lower your credit score?
Why do you believe that a higher credit score is more important than eliminating interest payments ASAP?
If you can, yes.
Credit cards are the most expensive way to borrow short of going to the nice men with hammers for your kneecaps if you don't pay them back.
Just pay it all off. There is no advantage to keeping a balance.
>Okay so i am in credit card debt of about $1500 now. What does that mean — that you've charged $1500 on your credit card or you're carrying a balance of $1500 over multiple months? The former is not credit card 'debt'. >I heard paying it all at once can lower your credit score? Even if it *did* lower your score, paying 25% interest in exchange in downright silly. >Do i pay it in full or make payments on it? In full, once a month, before the due date.
Yeah ive carried the $1500 over multiple months. Okay got it in full. Thanks !
Pay it in full. What you're reading applies to instalment loans not revolving loans.
Your credit score (e.g. standard FICO) is comprised of the following factors. The weights of the factors vary slightly depending on which specific type of score you're talking about (yes there are different types of scores that different lenders use) but in general it looks like this: * Payment history: 35% of your credit score (you always want to pay on time or ahead of time, no late payments) * Debt-to-credit utilization ratio: 30% of your credit score (lower utilization the better; no need to carry a balance) * Credit history: 15% of your credit score (keep your old accounts open; be selective about opening new accounts) * New credit: 10% of your credit score (too many new accounts open within a short time, typically the last 18-24 months, will be a flag against your score) * Credit mix: 10% of your credit score (ratio of credit cards, auto loans, mortgages, etc.) Notice there is no factor here that rewards carrying a balance. So don't do it. Carrying a balance just means you're giving away money to the bank. Your goal is to earn interest, not to pay it.
If you charge anything to any credit card, you should always, always pay the bill in full every month you get one. Never carry a credit card balance for any reason. You will not be paying any interest on your charges then.
This! Take this as your lesson from here on out OP- get that card balance to $0 every month and you’ll never have to pay them interest!!!
Never carry a credit card balance. Pay it off every time you get the monthly bill. Every time. Paying it doesn't lower your credit score. NOT paying it in full will lower your score.
>Do i pay it in full or make payments on it? You are already "making payments." That is why you are in debt. Pay it all off now in full. Stop paying insane interest. Stop believing these convoluted and exaggerated old wives tales. Paying 25% interest is not worth having an ever so slightly teeny tiny higher credit score (if at all).
Always pay your credit card in full. I have never not pay it in full. I use my credit cards for my business and between all of the my credit card bills I average 70 grand a month. Do not use a credit card unless you can pay it in full. But if you must it should be for an emergency only. Although if you do it regularly it's no longer an emergency. Never spend money you don't have. Never....
> I heard paying it all at once can lower your credit score? Why do you believe that a higher credit score is more important than eliminating interest payments ASAP?
If you can, yes. Credit cards are the most expensive way to borrow short of going to the nice men with hammers for your kneecaps if you don't pay them back.