The Best Way to Pay Off Your Credit Card to Get Good Credit

Paying off your credit card over time while making regular payments could have a positive impact on your credit score. But it's impossible for anyone to say just how much your credit score will improve. Everyone's credit situation is different, and you might realize a greater improvement than the next person. However, MyFICO says 65 percent of your credit score is determined by two things: your payment history (35 percent) and how much you owe (30 percent).

Instructions

1

Pay at least the minimum payment on your credit card each month. Even one late payment can cause a good credit score to drop by more than 100 points, according to Bankrate. Your credit score might not fall as much if you are still building your score, but missing a payment certainly won't help. Also, a late payment will be noted on your credit report, and will remain there for seven years under the terms of the Fair Credit Reporting Act.

2

Gradually pay down your credit card balance over several months---and preferably longer. It takes time to create a positive payment history. A good payment history over 12 to 24 months likely will have a greater impact on your credit score than an account that was opened and closed within 90 days.

3

Contact your credit card company once you have paid off the account---if you intend to close it for good. If you do close the account, request that your credit report be updated to reflect that the account was closed at your request---and not because of some adverse action taken by the creditor.