what is better for credit, paying off slowly or all at once?

joeb · #1 (**permalink**) 02-19-2008, 12:22 PM

I have heard that it is better for your credit to pay off your credit card in installments rather than all at once. Then someone has recently told me that it is better to pay it off all monthly, and that will increase your credit. Which is true?

AMJ21 · #2 (**permalink**) 02-21-2008, 07:34 PM

To PIF is always better for you. You have NO debt.

Depending on your UT you may want to pay a certain charge over a couple of months. It's like throwing these guys a bone every once in a while.

Believe it or not if you always PIF every month you're considered a deadbeat by the industry. Just make sure you keep your UT <30%.

formercap1agent · #3 (**permalink**) 02-21-2008, 07:45 PM

PIF will keep your account in good standing but don't expect any favors (meaning: no fee waivers if you slip up and go PD or OL, no credit limit increases, no lower APR's). Those only go to those who pay for their accounts, meaning actually pay interest, transfer balances from other cards, etc. If you pay nothing you will get nothing. Nothing is free...

Jeanie · #4 (**permalink**) 02-21-2008, 09:31 PM

I found this article to be very helpful and interesting: Maintaining an Optimal Balance Hope it helps you too!

jmale · #5 (**permalink**) 03-16-2008, 12:39 PM

it saves you money if you pay it all off at once, you can improve your credit rating by continously using the credit card.

creliableworkers · #6 (**permalink**) 03-17-2008, 01:39 PM

Yes I am totally obey your decision.

sahilmiddha · #7 (**permalink**) 06-05-2008, 01:00 AM

i think it is beneficial for you if you pay off your amount in instalments it also beneficial to build up the credit or it is easy to pay.

Jeanie · #8 (**permalink**) 06-05-2008, 10:59 AM

How is it going for you joeb?? Hope to hear that you are doing well with the decision you made!

~Jeanie

ibodner · #9 (**permalink**) 08-22-2008, 04:55 PM

It all depends on what type of credit card you have. The strategy behind business credit cards (those that actually involve business credit and not personal credit) is a bit different from the typical personal credit charge cards.

In order to be able to answer the original question we must know more about the type of card and its affiliation with business credit and/or personal credit.

Ilya Bodner
Small Business Owner

Jeanie · #10 (**permalink**) 08-24-2008, 09:29 AM

Thanks ibodner!! Great info!

~Jeanie