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Does paying off closed credit cards improve credit score?

Yes, paying off your closed credit card debt is smart, whether you do it every month or finally finish paying interest after months or years. And as you might expect, it will affect your credit score at a certain level. If you pay all your pending bills on time regularly, you may expect a slight improvement in your credit score after doing that. Carrying a balance in your wallet does not hurt your credit score. You may pay off all your entire balance at one time to build your credit. Keep in mind that keep your balance below 30% of your available credit because credit utilization shows how much of your credit limit you are using. Try to keep a regular check on your credit balance to ensure its timely payment and you will notice that as you pay down your balance, your credit utilization ratio improves. Most credit and debit card issuers also allow you to set up alerts or reminders to let you know when you are nearing a limit you choose. Once you settle down your pending credit card balances and see an improved credit profile, you then want to maintain that progress and you may achieve that by doing timely payments and keeping your credit utilization ratio low.