answersLogoWhite
Personal Finance
Improving Your Credit Rating
Money Management
Credit

Can paying off credit card balances hurt your credit?


Top Answer
User Avatar
Wiki User
2007-07-06 03:29:43
2007-07-06 03:29:43

paying off no, closing the account yes. 6,000 owed/10,000 credit limit =60% of credit used
2,000 owed/3,000 credit limit=66% of credit used=lower fico

Related Questions

User Avatar

The frequency of paying your credit card bill can hurt you in a number of ways. If you keep missing bills, pay late, or default, other lenders will not look upon you favorably, getting you worse rates in the future.

User Avatar

NO! Not if you have paid the credit off before you get another one. Or if you are paying one credit card off with another, you can only do that so much befor it will hurt your cerdit.

User Avatar

ANSWER Paying your debts in a timely manner doesn't give your credit score best results !!!! Crazy isn't it ! This is called your balance-to-limit-ratio and counts for 30% of your credit score. In order to get best result you have to keep your balances at least 70% away from your limits.

User Avatar

It shouldn't ! Paying off your balance early shows you're in good control of your finances - and can budget your bills based on your disposable income !

User Avatar

If you are charging and paying it off each month then it helps. If you never use the card then it really doesn't do much either way.


Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.