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Posted in Paying Your Bills
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Lml1309

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Paying off balances
My utilization is fairly high and I was planning on paying all my cards off but using the simulator that shot my score down? I'm wondering if it would be better to make larger payments before they're due and pay them off over the course of a few months or to just go ahead and pay them off all together? I'm planning on getting a new car and thought it would look better if I had no outstanding payments. Also, does paying a bill early make a difference or is it better to pay it right on time?

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Lowering your credit card utilization would generally raise your credit score especially if you are able to keep your credit card utilization under 10%. Even keeping your credit card utilization under 30% will often raise your credit score, just not as much.

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Don't trust the Simulator!

Helpful to 3 out of 3 people

I have never had a good result using the simulator on CK.  I don't know why but it never seems to work in your favor. 

Paying down your cards will always help your score. I suggest that you pay all cards down to 10% or less of utilization.  CC co's like to see a small balance on cards.  as an added bonus, Paying down large balances will often result in the CC's raising your credit limit.  I had a card with a $1700 balance on a $3500 limit.  I transfered $1000 to a new 0% card and paid $600.  The next time i checked on my card the credit limit had been raised to $5800. Greatly lowering my utilization. 

Good luck!

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