Chosen by Asker

The only time this would make a difference is if your debt were higher and you could pay it off in full. Lets say your debt was around 10k. If you had 10k to pay it off you should pay half the first month, half again the second month, and pay it off the third. This improves your credit score better than paying it off all at once. Since you are not paying it off all at once, but a lump sum instead, I would pay that full amount (1500) because it mimics the activity i describe of paying down a debt in pieces over time. The added benefit is you increase your debt to income ratio faster which will improve your credit score sooner.

Source(s)

I got this advice from a financial adviser years ago

by Pewpy

3 weeks ago

Asker's Rating: 

screw the creditors... you said "I am trying to get rid of all my credit card debt ..." get rid of the debt and be free from their enslavement

by Lil_Dog- 3 weeks ago

There is one sure way to get seriously bad credit. That is to carry balances. After you pay off this debt, continue using your card. But only for things you need like food or gas. Pay in full each month and see yourself getting 800+ scores in a year. /

by Judy- 3 weeks ago

Paying down your debt is a great idea but be sure to have adequate cash reserves on hand. Cash is king and it doesn't make sense to withdraw all of your money to pay credit card debt.

by Joseph C- 3 weeks ago

It would not look bad. Neither would paying the entire $4000. Paying anything on time that is not less than the minimum looks fine. The three things that look bad are paying late, not paying at all, or paying too little.

by StephenWeinstein- 3 weeks ago

Making a large payment will not hurt you at all. There are 3 major factors in your credit score. Paying on time, length of time accounts are open, and the ratio of balance to limit. If you are maxed out on all credit cards it looks like you are unresponcibal. Having availability shows diciplin and will improve your credit score.

by Scott- 3 weeks ago