Assuming you're referring to a credit card account, paying more could improve your credit score. Credit scores are calculated on a number of factors and weightings. According to FICO, which is the company that is most widely used by lenders to determine credit scores, the five main factors and the weightings for each are:
- Payment history - 35% of your FICO score
- Amounts owed - 30%
- Length of credit history - 15%
- New credit - 10%
- Credit mix - 10%
By paying more on your account, you reduce your amount owed. This impacts the credit utilization ratios that show how much of your available credit you're using. The bigger balance you carry, the higher your credit utilization score will be, which means you could be close to maxing out your credit. For example if your only credit card has a $10,000 maxmimum, and you have a $5,000 balance, your credit utilization ratio will be lower than someone else who has an $8,000 balance. The more your pay it down the lower your utilization ratio will be. Since Amounts Owed are the second highest heavily weighted category in your FICO score, paying more will help your score.
The caveat is, Payment Hstory is the most important factor in your FICO score. You don't want to pay more one month, only to find yourself short the following month and potentially miss a payment. Missing a payment will show up in the history that the credit card company reports to FICO. You're better off paying at least the minimum versus missing a payment.
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