I had debt totaling $105K on credit cards that I paid down to $39K. Two months ago, I had a 680 FICO score and now I have a 771 score. My interest stayed up at very high percent even though I paid them off in full. Will it help to pay another $15K on the last credit card? Then all I will have is $24K on a personal line of credit, or should I just just live on the $15K since it won't help much.
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Pay off the credit card debt if the interest rate is higher than what you are earning on that money, and if you don't need that money for day to day living expenses. This is solely from the standpoint of improving your own financial situation. You'll maximize your return of your money this way.
Will it improve your FICO score? There are many issues that come into play and today's credit card environment is different than last years. Will a higher FICO score or lower debt trigger a lower rate from your credit card lender? Not necessarily. This is why we promote liquidity and improving your net worth and income.
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Pay off the credit card debt if the interest rate is higher than what you are earning on that money, and if you don't need that money for day to day living expenses. This is solely from the standpoint of improving your own financial situation. You'll maximize your return of your money this way.