Paying lump sums off credit cards

edited 30 November -1 at 1:00AM in Credit Cards
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SerendipitiousSerendipitious Forumite
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edited 30 November -1 at 1:00AM in Credit Cards
In the next few days I will be able to pay 3,500 off my Tesco Mastercard which is almost maxed.

It's 'new' money ie coming from an investment which matured in the past few weeks.

I see this as a welcome second chance to regain an improved financial footing.

My question is would I be best to pay the 3500 all in one go or should I pay it in chunks, eg 7 x 500 over a period? Which would look better for my credit score in the long term?

There will still remain a balance which I will then throw everything at until it's clear. But having made only minimum repayments for some time I'm keen to use this opportunity to redress those mistakes.

Advice welcome please.
“All shall be well, and all shall be well and all manner of thing shall be well.”




Replies

  • zx81zx81 Forumite
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    Pay it all off. Save yourself the interest.

    Then use regularly and pay in full each month
  • zx81 wrote: »
    Pay it all off. Save yourself the interest.

    MEH....red evens says I !!
    "Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!
  • statorstator Forumite
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    Pay it all off so that the balance drops off your credit report sooner. (in a few years). Then use the card sensibly, paying full balance every month :)
    Changing the world, one sarcastic comment at a time.
  • eskbankereskbanker Forumite
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    It's 'new' money ie coming from an investment which matured in the past few weeks.
    <snip>
    Car Payments remaining : 12 / 60
    Obviously people's circumstances and priorities change but it seems quite unusual to have a credit card that's nearly maxed and a car loan if you also have investments - the fact that this investment has matured would suggest an unbreakable fixed term arrangement but do you have any other potential sources of funds that may be better used to pay down debt (without knowing relative returns, interest rates, etc)?
  • SerendipitiousSerendipitious Forumite
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    eskbanker wrote: »
    Obviously people's circumstances and priorities change but it seems quite unusual to have a credit card that's nearly maxed and a car loan if you also have investments - the fact that this investment has matured would suggest an unbreakable fixed term arrangement but do you have any other potential sources of funds that may be better used to pay down debt (without knowing relative returns, interest rates, etc)?

    No not really, this is it.

    I would be tempted to pay off the car loan as this represents a bigger outlay each month, but interest was a) comparatively low and b) front loaded on at the beginning, so I wouldn't save as much as if I paid the card. And by this time next year the car finance will be all paid off so at least the end is in sight there.

    Both arrangements have been serviced promptly, on time and the accounts have been conducted well within the terms and conditions of the agreements, but I'm very conscious of their existence and will feel very relieved when they are sorted.

    I have been a lot better off in the past, but for now I just hope I can look forward to feeling better about money.
    “All shall be well, and all shall be well and all manner of thing shall be well.”




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