No but if you pay it off before it becomes delinquient it won't hurt it either.
WRONG! speaking from experience, yes. if the account is NOT charged-off, but listed as CLOSED, it will raise your score if you lower or pay off the balance.
I have a closed (NOT charged-off) CC that had a balance of 2400 and I made a payment of 1700. once posted to my reports, they were raised an average of 37 points. A few weeks later i paid off another closed CC, it was a small payment of 183 which satisfied the account (zero balance). Once posted, 17point increase!
I pay close attention to my reports and use several monitoring websites, so i know there were no other changes that contributed to the increase other than the payments mentioned.
people on the net are correct about paying off/down a CHARGED-OFF (collections) account will not raise your score. But, a closed account is completely different!
Hope this helps
No, only if the account is a paid closed account. What affects your score is utilization of your credit limit, which should only be about 25 to 35%.
In a word-nounfortunately, closed accounts will remain AA a negative against yr credit score even though you pay them off on time. after 5 yrs, your credit records should not contain this neg. info., however. Simply opening a new account will not raise your score, only consistent on-time payments of an account will help in that respect. Credit scores are not solely based on cc payments, but also car payments, mortgages, etc. AnswerIf the credit card is in your name and you have been paying on it for the last 2 years on time, it will imorove your score, and could also up your credit limit after it is paid in full. You should check your credit to be sure they are reporting it to your credit as pays as agreed.
CompuCredit of Atlanta is behind the Salute scam. They recently closed everyones account and are still charging the monthly maintenance fee. This fee is for having a active credit card. The agreement is that for paying the monthly maintenance fee that you would be given a credit card.
Good credit And A record of paying bills on time.
Paying the minimum amount due on credit card is not necessarily a sign of credit trouble because it actually makes the credit card account current.
== == There is no difference in credit score increase if you pay a close or open account off. Paying an account is always a good idea, and eventually it will increase your score.
No, only if the account is a paid closed account. What affects your score is utilization of your credit limit, which should only be about 25 to 35%.
Your sister should not be paying on the credit card balance. In fact, the credit card company cannot even legally send her statements because she is protected by the automatic stay.
In a word-nounfortunately, closed accounts will remain AA a negative against yr credit score even though you pay them off on time. after 5 yrs, your credit records should not contain this neg. info., however. Simply opening a new account will not raise your score, only consistent on-time payments of an account will help in that respect. Credit scores are not solely based on cc payments, but also car payments, mortgages, etc. AnswerIf the credit card is in your name and you have been paying on it for the last 2 years on time, it will imorove your score, and could also up your credit limit after it is paid in full. You should check your credit to be sure they are reporting it to your credit as pays as agreed.
CompuCredit of Atlanta is behind the Salute scam. They recently closed everyones account and are still charging the monthly maintenance fee. This fee is for having a active credit card. The agreement is that for paying the monthly maintenance fee that you would be given a credit card.
It depends on many factors. If the fraudulent account was actually being paid on time, then it might negatively affect your credit score if it were closed. BUT most fraud cases usually end up with the fraudster NOT PAYING the account, which causes late payments and collections. If the creditor agrees the account was fraudulent, then they should REMOVE the account, not just simply show it as "closed". If they haven't done this, you need to dispute this with the credit bureas. Check out this site I've found with lots of helpful information. www.creditscorehero.com
account payable
Good credit And A record of paying bills on time.
Paying the minimum amount due on credit card is not necessarily a sign of credit trouble because it actually makes the credit card account current.
When you pay on account, the entry is Cash - Debit Accounts Payable - Credit
Closing the account will remove the temptation to spend up the cards again but, closing the account can actually lower your credit score. You ought to take that question and your private credit information to a credit counselor for a better answer. By the way, CONGRATULATIONS on paying off the cards!
paying off no, closing the account yes. 6,000 owed/10,000 credit limit =60% of credit used2,000 owed/3,000 credit limit=66% of credit used=lower fico