The best way to establish credit

[lotofaction]

I need some advice in regards to paying off my credit card debt. I currently have a credit card with a major bank that has a balance of $4844 with 9% interest. My minimum payments every month are around $50. I just recently came into some money, just enough to cover this debt. As far as building credit, I was wondering if it's a better idea to pay it off outright, or to make significant monthly payments. I guess I have the option to make a large payment and continue to pay monthly, but I really have no idea which is better for credit. Any help would be greatly appreciated!! thanks!

[trent]

If I had any debt in this economic environment, I would get rid of it as fast as I can. Interest rates will go up significantly eventually, and debt repayment will become harder.

[bullish]

Originally Posted by trent

If I had any debt in this economic environment, I would get rid of it as fast as I can. Interest rates will go up significantly eventually, and debt repayment will become harder.

Interest rates won't rise much if at all in the next 5-7 years.

[Tightwod]

Pay it all off. No point in paying interest for the sake of trying to increase your credit rating. I personally think paying a balance off faster is more beneficial than making lump sums over a period of time for your credit rating any way.

My 2 cents

[Steven]

I was in a similar situtation recently, and I paid off my entire cc debt. I hate paying interest to greedy banks, just for the sake of improving my credit. Improving my credit for what, to take up on more debt? No thank you!

[trent]

Originally Posted by Steven

Improving my credit for what, to take up on more debt? No thank you!

Exactly my sentiment! The whole house of cards is built on fiat money and credit, but bankers know if enough people are aware of their monstrous Ponzi scheme, the game is up. This is the reason central banks and governments around the world do their best to keep the credit scam going. If you are in debt, then you are a bank slave, plain and simple!

[Canadian]

I would rather be debt free.

[sunshine]

Originally Posted by lotofaction

I need some advice in regards to paying off my credit card debt. I currently have a credit card with a major bank that has a balance of $4844 with 9% interest. My minimum payments every month are around $50. I just recently came into some money, just enough to cover this debt. As far as building credit, I was wondering if it's a better idea to pay it off outright, or to make significant monthly payments. I guess I have the option to make a large payment and continue to pay monthly, but I really have no idea which is better for credit. Any help would be greatly appreciated!! thanks!

If I were you I would get rid of the debt ASAP. If you pay it off it means that you are a reliable borrower and you build good credit by borrowing each month but pay in full what's due by the end of the month.

[welshboy]

your choices with the money that you have is can you make more money if the amount was invested than you are currently paying in CC interest. with today's financial situation your not going to make 9% guaranteed return on your investment. So pay off your non tax deductible debt (credit card) and then take out a investment loan for the same amount which becomes a tax deductible debt. to continue to have good credit you should use your credit cards to pay your monthly bills, phone, cable etc, your paying them anyway so you are continuing to use credit but not have a monthly balance. most credit cards will give you a interest free grace period. check your card

that's my view anyway

[trent]

Originally Posted by welshboy

with today's financial situation your not going to make 9% guaranteed return on your investment.

And don't forget that you have to calculate real inflation-adjusted returns to be realistic.