What is best for your credit: To pay off cards with low balances COMPLETELY, or to pay a little of e

Tips and Deals Forums Consumer Credit Improve Credit What is best for your credit: To pay off cards with low balances COMPLETELY, or to pay a little of e

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    • #347636
      Anonymous
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      I’m 19 and I already have about 2,700 in credit card debt, and 450 in collections because of a medical bill. I checked my score and it’s 526. I decided to stop ignoring this and I want to improve my credit.

      I’m waiting for that $ 600 stimulus payment to pay off the collections account first and foremost; after I pay it off, how long will this keep affecting my credit score? The collection first appeared on my credit report two months ago.

      I usually pay off $ 300 a month in credit card debt. Three of my cards have around $ 300 in balance, two of them have around $ 500 and the last one has around $ 900. All of them have around the same interest rate (19-20% APR), except for the one with 900 which has a 9.5% APR. They are ALL close to their limits!

      Which is the card that I should pay off first? I’m considering paying off the three cards with $ 300 balances completely first, or to pay off a little of each card so all of them have a 50% balance. Which card(s) should I pay off first, and how?
      I’m also a college student surviving on sub and non subsidized student loans, but those have their payments deferred until I finish college, which will be next year hopefully. They will put me around $ 10,000 in debt. How much does this affect my score also? I’m not looking forward to paying THOSE off, that’s for sure. But I have to… *wimp*

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