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mshornets

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paying off or down on CC is better?
I have a large CC debt to one card. I now have the ability to pay my $4,100 bill to $1,100 or completely off. What would be better? maintain a small balance and make on time payments or to just pay it to a zero dollar balance. What will improve my C score fastest. I also have student loans but those are doing fine and will just have to wait to be paid off even though I am low-income based.

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Pay off credit card!

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Most credit cards have a higher interest rate than student loans, so paying it off would be smarter as would being sure you pay off the balance every month.  That improves your credit score.

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Pay them off, but continue to actively use them each month and pay the statement balance off in full every month. Even if you only charge gas for your car on it once a month and pay off that $50, that is the best method to keep your credit cards properly utilized and improve your credit.

Regarding your student loans, those are good to have as long as you are paying on-time each month. You do not need to worry about paying those off early for your credit, only to prevent you from paying interest. The only thing negative student loans can have on your credit is if you have too high of a balance your debt-to-income ratio could be high and that will effect getting approved for credit, but as long has you have a good Debt-to-Income ratio your student loans are a plus on your credit (assuming you pay on-time every month of course).

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