To pay off all debt in one go or to pay it off monthly?

Quintilius

Hi All,

I hope you are keeping well.

Does anyone know if the effect on my credit score will be the same or different if I was to pay off all my outstanding debt in one go or if I was to continue paying monthly instalments?

I read that you should pay monthly but that was on a post created in 2008.

Thanks

David301

It doesn't matter what it does to that imaginary number that you are given. You need to consider how you want your history to look to prospective lenders in the future. Ideally you should clear your balances because it demonstrates that you are trustworthy and a good bet to lend money to with preferential rates.

[Deleted User]

Unless you like paying interest, pay it off as soon as you can.

Quintilius

Thanks for the advice. Fortunately no interest on my outstanding debts so yeah I will just clear it off in one rather than dragging it out. Thanks

downhillfast

If the accounts have been defaulted (no don't mention one way or another) and there is no interest being charged, then I would stick the money I was planning on paying it back with in one of the high interest current accounts (if you can get one) and then pay it back when the defaults are about to drop off... If youve not been defaulted then pay it off sooner rather than later and be rid!