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Q:
Will paying off the cards help or hurt my credit score?

I want to pay off my credit card debts, but I am afraid that it will negatively impact my credit score. My score is now around 650. Will paying off the cards help or hurt? -Derek

Derek,

If you are paying high interest charges each month, it might be worth it to take the risk. In making your decision, you should know that there are many factors that impact your credit score. As we understand, your payment history accounts for 35 percent of your score, the amount you owe is 30 percent, the length of credit history makes up 15 percent, new credit is 10 percent and your credit mix (credit cards, store charge cards, loans, etc.) is 10 percent of your score. The number of times you apply for credit and the frequency of these attempts to get credit are also taken into consideration.

Good luck with your decision,

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