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Paying of credit card?

I've had a $2,737 debt w/ Capital One. It was debt from college that got out of hand. I stopped paying it for a while & it finally got turned over to a law office. I've been paying $50 a month for several months & now have $1,076 left. I plan on using a a chunk of my income taxes to just pay it off & stop wasting my time & money paying it off slowly.

Will finally paying this debt improve my credit? I do not have any other debt besides student loans, which are currently in deferment.

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Asked by Anonymous at 5:31 PM on Feb. 3, 2013 in Money & Work

Answers (6)
  • Paying off any debt helps your credit score.

    Answer by silverthreads at 5:33 PM on Feb. 3, 2013

  • Yes it will

    Answer by Dardenella at 5:45 PM on Feb. 3, 2013

  • Yes it will help your score.

    The finance company might even make you a deal and let you pay less if you call and tell them you want to pay it all off in one chunk. It is worth calling them and asking at least. You might call and tell them that you have $900 cash and ask if they are able to cut you a deal. It has worked for my sister.

    Answer by SleepingBeautee at 5:56 PM on Feb. 3, 2013

  • Yes, but believe it or not, you have to keep using the credit and paying it in order for it to really help your credit score. To buy a house, they want at least 2 current forms of credit that you have been paying more than the minimum balance on, this helps bring up your credit score and helps to get lower interest rates on other loans.

    If you ask them to let you pay less, make sure that you find out whether that will hurt your credit score. Good luck mama, you're on the right track.

    Answer by ohwrite at 7:35 PM on Feb. 3, 2013

  • They will likely cut you a deal. Try offering them half of what you owe and see if they take that. They may even counter-offer so you end up paying less than what you owe. I got stuck with my ex's credit card due to the fact that I was married to him when he got the card. He failed to make the payments AFTER we were married and they came after me for the balance when it defaulted. I've been paying 50 a month on it and when I have some cash, plan to offer them half of what is owed. They will like having it off their books and not just getting 50 a month. Plus, someone has to take time out of their day to enter that payment and send me a new receipt.

    Answer by tempsingl3mom at 12:54 PM on Feb. 4, 2013

  • I would call them to compromise the debt - they might reduce the total amount in light of a payoff.

    Answer by tasches at 4:57 PM on Feb. 5, 2013

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