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  #1  
Old 05-23-2009, 07:53 PM
lotofaction lotofaction is offline
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Default The best way to establish credit

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!
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  #2  
Old 05-28-2009, 02:04 PM
trent trent is offline
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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.
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  #3  
Old 06-07-2009, 12:41 AM
bullish bullish is offline
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Quote:
Originally Posted by trent View Post
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.
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  #4  
Old 06-07-2009, 05:13 PM
Tightwod Tightwod is offline
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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
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  #5  
Old 06-08-2009, 05:29 PM
Steven Steven is offline
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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!
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  #6  
Old 06-09-2009, 03:16 PM
trent trent is offline
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Originally Posted by Steven View Post
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!
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  #7  
Old 06-10-2009, 03:08 PM
Canadian Canadian is offline
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I would rather be debt free.
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  #8  
Old 07-18-2009, 01:28 AM
sunshine sunshine is offline
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Quote:
Originally Posted by lotofaction View Post
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.
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  #9  
Old 09-13-2009, 10:53 PM
welshboy welshboy is offline
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Default credit

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
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  #10  
Old 10-22-2009, 04:53 PM
trent trent is offline
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Originally Posted by welshboy View Post
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.
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