Best Way to Pay off Credit Card?

Question

When I turned 18,i made the mistake of applying for a credit card,and I was approved.I got a card with a $200 dollar limit.And,of course,spent it all in a matter of days.So now I owe them about $500 dollars,which isn't alot compared to other people.And my dad keeps telling me to "pay it all off now".But alot of other people I've talked to have told me "its better to pay it off slowly over time".So my question is,which way will help me credit score go up?All at once,or slowly over time?

Answer 1

If you are over your limit, you need to pay it off now.  If you have the money, why wouldn't you?  Your dad is right and I hope your more apt to follow his advice than all the other people who told you to carry a balance on your card.  They are wrong.

As for your credit score, you need to make sure you are making at least the minimum payment on time - that's the important part.  The only people it's better for to pay it off slowly is the bank you got the card from - they'll make more money in interest off you.

To improve you credit score, that's all you do.  Use the card for small purchases and pay the bill in full each month on time.  It does take time to build your credit score but that doesn't mean you have to carry a balance to do it.

Good luck.

Answer 2

obedience is better than sacrifice, obey your father!

Answer 3

As far as your credit score goes it doesn't make much difference so I agree with your dad, just pay it all off now.  After you have payed it off if you keep buying little things here and there (and paying them off too) that will keep building your credit score so just do that - but don't over do it again.

Answer 4

Pay it off, ever heard of finance charges?