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Will Paying Off My Credit Card Actually Help My Credit Score?


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Will Paying Off My Credit Card Actually Help My Credit Score?

A reader asks, I have the money to pay off my credit card now, but am not sure it’s worth it?

Well, Samantha it is most definitely worth it! When you pay off a credit card, your credit score improves. Why? Because five factors determine your credit score, and one of the biggest is the amount of debt owed. It is 30 percent of your overall score and the biggest chunk is payment history, which is short for – I pay my bill on time.

But more important than your credit score going up is that your debts are going down.

The AVERAGE credit card interest rate TODAY hovers around 17 percent. If you put all your money in the stock market – obviously a bad idea – you’d be hard-pressed to earn 17 percent on your investments. But if you pay off a credit card bill that has a monthly balance of $5,000, you could save up to $85 a month.

That’s $1,000 a year! And you don’t have to do anything to save that money, other than pay off a debt right now. If you don’t think you can afford to do that, call Debt.com today. We know how to make it happen.

Learn more at How Often is Your Credit Score Updated?

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