lefdi Posted January 7, 2008 Report Share Posted January 7, 2008 I currently have 93K in credit card balances. I am wanting to pay them in full today. However, the FICO simulator instructs me to pay over time? I can see the benefit of that when one is establishing credit history....but I have great history.I need to bring my score up in the next two months. Can I get the same results by just paying off the balances? Or do I need to do it over the next couple months? Link to comment Share on other sites More sharing options...
AboveAverage Posted January 7, 2008 Report Share Posted January 7, 2008 I currently have 93K in credit card balances. I am wanting to pay them in full today. However, the FICO simulator instructs me to pay over time? I can see the benefit of that when one is establishing credit history....but I have great history.I need to bring my score up in the next two months. Can I get the same results by just paying off the balances? Or do I need to do it over the next couple months?They say that doing it over time helps it with your score, as potential lenders need to see that you've been paying your credit on time and making regular payments.What are your scores now? That would help in determinining whether you pay it all off now (guess you're rich...) or paying it over time. Link to comment Share on other sites More sharing options...
willingtocope Posted January 7, 2008 Report Share Posted January 7, 2008 Why do you need to improve your score? And, which score are you trying o improve?If you're looking to get a mortgage, $0 credit card balances will help more than "pay over time"... Link to comment Share on other sites More sharing options...
lefdi Posted January 7, 2008 Author Report Share Posted January 7, 2008 My score has dropped to 616 from around 700. The simulator says it will go up to 680-720. I have been paying my cards on time over time while I have had the balances. I just have been paying the minimum though. Not necessarily "rich". Just make our money in large increments, so sometimes I carry heavy balances until the deal is done. Link to comment Share on other sites More sharing options...
andbowd Posted January 7, 2008 Report Share Posted January 7, 2008 Pay over time. ABEQ 532, EP 546, TU 541, 01/08 Link to comment Share on other sites More sharing options...
willingtocope Posted January 7, 2008 Report Share Posted January 7, 2008 Again...which score are you trying to improve? There are like 17 different FICO models. The FICO simulator is directed at the "here's a sucker that CC's can make money off of" score... Link to comment Share on other sites More sharing options...
jq26 Posted January 7, 2008 Report Share Posted January 7, 2008 Unless there are extenuating circumstances like a very short/incomplete credit history, just pay them off. Your score will shoot up. With your long history, the most likely reason your scores are dropping are due to revolving balances. Add the financial aspect to it and it is a no brainer. Pay it off- great for FICO and great for your wallet. Link to comment Share on other sites More sharing options...
AboveAverage Posted January 7, 2008 Report Share Posted January 7, 2008 Unless there are extenuating circumstances like a very short/incomplete credit history, just pay them off. Your score will shoot up. With your long history, the most likely reason your scores are dropping are due to revolving balances. Add the financial aspect to it and it is a no brainer. Pay it off- great for FICO and great for your wallet.I'm with the Phillies fan on this one. If I had 93k in revolving debt and had the means to pay it off all in one shot, I would do it. Your long credit history will more than make up for it and you should be back in 700 in no time with just low revolving balances. If this is feasible, that would be what I'd do. Link to comment Share on other sites More sharing options...
andbowd Posted January 7, 2008 Report Share Posted January 7, 2008 WoW Link to comment Share on other sites More sharing options...
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