Will Paying Off Credit Card Balances Improve Credit Rating

archive
Posted: Thu Jan 13, 2005 1:56 pm
Post subject: Will Paying Off Credit Card Balances Improve Credit Rating

Joan Brakensiek
Date: 6/26/2000 7:18 pm CDT

I have carried a fairly large balance for about five years now and hope to pay them off completely this month.
I plan on getting a low rate card for emergencies only after this.
Will the credit card companies "give me credit" for doing this on my credit rating, and will this make a low rate card easy to get? My rating isn't bad I'm just wondering.

---

CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!

---

archive
Posted: Thu Jan 13, 2005 1:57 pm
Post subject: Will Paying Off Credit Card Balances Improve Credit Rating

Board Monitor
Date: 6/26/2000 7:31 pm CDT

Joan,

Thanks for your recent inquiry! Sorry, it has taken so long to get back to you...we have had problems with our e-mail service. First of all, let me say that we are not experts on credit rating/scoring.

This is a very complex subject (see our "CreditReport" page for more info. at...

http://www.cardratings.org/creditreport.html

At any rate, based on what I know about this topic, I do not believe that "paying off a large balance" will help your rating. I would suggest, though, that you close the account after you pay off the balance if you don't plan on using this card again (this can affect your credit rating).

Regards,
Jackie Hughes
Board Monitor
CardRatings.org

---

CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!

---