When it comes to keeping your credit score in good shape, which is better making full or partial payments?
When your goal is to lower your overall debt load, you need to figure out which type of repayment schedule will help you reach your goal as quickly as possible. Would you be more motivated to pay down debt when you have a fixed partial payment each month or are you disciplined enough to set aside funds for a full payoff in a few months? Only you can decide which method is right for you. The end goal is the same: to pay off as much as you can as quickly as possible.
Although making timely payments is always a good idea, you don’t want to overlook the benefits of paying off bigger chunks of debt — or all of your debt in full — to improve your credit score. Clearing your debt load quickly can help you clean up your credit report fast, and it has the added benefit of eliminating the risk of missed or late payments altogether.
Also paying off the higher interest rate card first makes the most sense for your overall financial future.
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