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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Paying off the Credit cards w/out killing FI Date:  9/28/2017  7:13 PM
Author:  vkg Number:  311984 of 313093

Are you planning on applying for major credit in the near future?

There are reports that paying off all of the balances at one time has caused a reduction in credit scores. It isn't clear if this is real. Closing accounts or not using them can result in a lower score and having accounts closed by the issuer.

A theory which has been suggested is that part of your credit score is relative the class of creditors that you are assigned. Your rating might be higher in the current class than the better class you are compared against when you have no outstanding credit.

If you are planning on applying for major credit, then paying off a 1/3 each month and watching your credit score might be worth the interest. Otherwise, just pay off the cards. keep the accounts active with routine transactions, and pay them off every month
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