Should I pay off a $20k cc debt all at once or in payments to boost my credit score as much as possible?

Im ready to pay off $20k in cc debt but is it wiser to pay it all at once or in large payments?

Should I pay off a $20k cc debt all at once or in payments to boost my credit score as much as possible?
If you have the money, pay it off. That kind of debt on your credit report is only damaging it, so get rid of the debt ASAP and your credit score will increase.
Reply:It's ridiculous to be paying credit card interest if you can afford to pay-off the entire balance now.
Reply:all at once is the best way if you can do that
Reply:Pay it off. Your credit score is based highly on your percentage of outstanding debt. Paying such a large amount off is what will boost your score.
Reply:if u have the money to then do it as long as u have like 5k left over
Reply:yea pay it off all at once. Because if you dont, you will put your self into even more debt!!!
Reply:these answers show you how little people know abou credit... if you want to establish BETTER credit (boost your rating) pay it down but keep 10% of your credit limit ...then you can make monthly payments and bring your account down to zero over a peroid of 12 months
Reply:Paid off, is paid off. I say pay it all off!
Reply:pay it off u can probally call the credit card co.and tell them you want to pay it in full they will more than likely knock off some of the interest so you will probally owe less
Reply:Pay it all off. Then use your credit cards a little each month instead of cash for some things and pay it off in full each month.
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Reply:Your credit score will not be helped by paying off accounts all at once. Credit scoring is based on risk assessment, and the way to make you riskiness lower (and credit score higher) is to demonstrate a consistant payment pattern.





Large payments are better than nothing, but it would be better to make scheduled payments and add money in to be applied to the principle amount. The plan is to spread the payments over a year or two to establish a payment pattern that can be read by lenders.
Reply:Pay it all off at once. Charge a tank of gas or a meal on a different cc each month but pay it off before the interest accrues. Try to do this every month. It takes about 12-18 months of consistently doing this and not being late on any of your payments for your credit score to go up a sizeable amount. However, the previous posters are right about you needing to eliminate all of that 20k to get your credit score heading in the right direction. Once you do that, everything else is maintenance.
Reply:well obviously....it's going to cost you less in the long run to just pay it off if you can. If you continue to make payments...even large ones...you're still going to keep adding interest...and end up paying more in the long run....pay it all if you can!
Reply:Two approaches to take here.





From a financial standpoint, the less interest you pay, the better, and putting the full $20K against your debt right away is a smart move.





But, from a credit standpoint, making a single huge payment really does nothing to boost your credit.





Your credit rating and score is a measure of how reliable you are at paying your debts over time. (The operative words there are over time) Single huge payments, or paying in full every month do not boost your credit as well as consistent payments over time. That's why mortgages and car loans have a larger impact on your creditworthiness then credit cards.





What I would do it make a schedule to pay off your credit cards over the next 12 to 18 months. Put the $20K into an account like ING Direct or Emigrant Direct to make some interest while you are paying down the credit cards. Then I would make large payments for the first month, and smaller regular payments every month following. Something like this:


First month: $5000 spread over all the cards


Next 15 months: $1000 spread over all the cards.


Alternate: (Preferred method)


First month: $5000 on highest interest card, minimum payments on other cards


Next 15 months: $1000 on highest interest card, minimum payments on other cards


and as you pay off a high interest card, dedicate that min payment to the next highest interest card.





Advice:


Money and credit is a tool. It is a tool that you use to live thrive and survive in today's world. Tools cost money. A contractor will not hesitate to spend money on a tool because it will allow them to perform their work better, they make more money in the future.





The amount of interest you will incur over the next 15 months is not really crippling, but the benefit you will gain through better credit will pay back that expense many times over throughout your lifetime.





Best of luck!
Reply:Pay it off asap. It will clear up the debt on your cc and you won't have to keep paying interest. The sooner it is paid off, the better your credit will be.