Business

Full Payment vs. Partial Payments: Which is Best For Your Credit Score?

Published

3 years ago

April 16, 2022

When it comes to paying off your credit card, there are two leading schools of thought: full payment and partial payment. Both have pros and cons, but which is best for your credit score?

Method 1: Paying your balance off in full every month

Pros:

You won’t accrue debt. If your balances are $0 at the close of every statement, you’ll never accrue interest.
You’ll improve your credit score—the less outstanding debt you have, the higher your credit utilization rate. You may want to consider a popular method like using a personal loan to pay off debt and this includes credit card debt.
You’ll be less likely to default on your debt. Debt creates a slippery slope that quickly gets people in over their heads and unable to pay back what they owe. Since you’ll never carry a balance, your chances of defaulting are slim.

Cons:

It can be challenging to come up with the money to make a full payment, especially if you’ve spent more than you made throughout the month.
You may not be able to afford all of your bills if you put all your money towards paying off your credit card in full. If you run into this problem, you’ll need to cut expenses or alter your budget to ensure you have enough money to cover your debt and other necessities.

Method 2: Paying the minimum or making partial payments

Pros:

You’ll need less money every month to make payments on time. There are multiple ways you can use partial payments as a debt payoff strategy.
Consider popular methods for paying off debt in increments to see which is right for your situation. If you’re on a tight budget, this is a better strategy to take than avoiding making payments.
You can put money towards emergency savings while also paying your bills. Emergency funds ensure cash is available when you need it, which can help you avoid going into debt in the future.

Cons:

You’ll accrue interest on your outstanding balances.
Minimum payments are often eaten up by the interest on any balance you carry over, which can be demotivating if you’re trying to get out of debt.
It will take you a long time to become debt-free. The longer you carry a balance, the more interest you’ll accrue. The more interest you accrue, the more time it’ll take to get your balance back to $0.
Your interest rates could change over time due to market conditions, raising your debt even if you haven’t made additional charges.

Which method is better for your credit score?

It can be tempting to make partial payments on your debt each month, but this strategy could have a negative effect long term. Making only partial payments can increase your debt burden since it will take longer to pay it off.

The two most significant factors that affect your credit score are the number of late payments made and your credit utilization ratio. Credit utilization is determined by dividing the amount of debt you carry over the total amount of available credit. Experts recommend having a utilization ratio of 20% or lower. However, the best credit scores typically have a utilization ratio of 10% or less. Making only partial payments could end up lowering your credit score because of your increased utilization rate. A better approach is to make full payments on your debt every month, which will help you get out of debt faster and improve your credit score.

The bottom line

Paying your balances off in full every month isn’t easy, especially if you’re on a fixed income. But if you want to have the best credit score possible, you should make it a habit to pay in full instead of only paying the minimum or partial payment. However, a partial payment is still better for your credit than not paying anything at all, so do the best you can with what you have and commit to changing the way you spend money so that you’ll become debt-free as quickly as possible.

Business

Spynn’s PR Playbook for Startups Turning Funding into Market Leadership

Published

3 weeks ago

March 27, 2025

Matthew Wiles

Byline: Jennyfer Ann Valencia

The recent funding boom in India, where startups raised over $428 million between March 10 and March 15, 2025, reinforces the critical role of public relations (PR) in securing investor confidence and enhancing visibility. As competition intensifies, effective PR strategies help startups differentiate themselves and build a strong market presence.

Spynn, a PR agency for startups specializing in securing top-tier media coverage, enables startups to craft compelling narratives that attract investors and maintain a positive brand image.

The Role of PR in Startup Funding

A recent survey conducted by Spynn found that startups with a strong PR strategy are significantly more likely to secure funding rounds than those without. According to the research, nearly 70% of investors say media visibility and brand credibility helped their decision-making process. This highlights PR’s direct impact on a startup’s ability to attract investment.

PR helps startups articulate their value to investors by securing media coverage and highlighting their growth potential. High-profile placements lend credibility and set up startups’ potential, making them more attractive to investors. For instance, a well-publicized success story from a startup like Zolve, one of the top funding recipients, can drive further investor interest and strengthen its brand.

India’s funding surge spans sectors including Batterytech, Edtech, Gaming, Apparel, Aerospace, Manufacturing, Fintech, Energy, and Travel. While this presents opportunities, it also brings scrutiny. Startups must manage their reputations effectively, ensuring consistency in their messaging across media platforms. As a PR agency for startups, Spynn’s expertise in reputation management helps businesses navigate these challenges by maintaining a cohesive brand identity and reinforcing investor trust.

Establishing Credibility Through Media Placements

Research from Spynn also revealed that startups that get featured on Forbes, Business Insider, and other top-tier publications experience a 50% increase in inbound investor inquiries within six months. This shows the value of securing strategic media placements to reinforce credibility and market positioning.

Strong media coverage bolsters a startup’s credibility, reinforcing its market positioning and investor confidence. Spynn ensures startups secure coverage in authoritative outlets, helping them establish themselves as thought leaders. Beyond initial publicity, Spynn focuses on building long-term relationships with media, ensuring sustained visibility and brand consistency.

Spynn’s CEO, Matteo Ferretti, emphasizes the role of storytelling, “Effective PR is about coverage and creating narratives that resonate with audiences. Startups must highlight their unique value and demonstrate how they solve real-world problems.”

PR for Growth and Global Expansion

Spynn’s data indicates that startups leveraging international PR strategies are twice as likely to successfully attract foreign investors and expand into new markets. Media coverage tailored for global audiences enhances cross-border recognition and facilitates partnerships, making PR an essential tool for growth beyond domestic markets.

As Indian startups scale, a strong PR strategy facilitates global recognition. Spynn’s international media reach helps startups gain traction in new markets and attract foreign investors. This is especially crucial for sectors like Fintech and Edtech, where global expansion is key to success.

A well-executed PR strategy strengthens a startup’s digital footprint, ensuring a consistent and engaging presence across platforms. Matteo Ferretti highlights the importance of balance, “A successful PR approach integrates both digital and traditional media to maximize impact and audience engagement.“

Ethical Considerations and Future Trends

Transparency and ethical storytelling are vital in PR. Startups must ensure authenticity in their messaging to build lasting trust. Spynn upholds ethical PR practices that align with principles of sustainability and integrity.

Indian startups must adapt to evolving PR trends, including AI-driven outreach, digital media dominance, and deeper media relationships. As competition grows, startups that take advantage of PR will have a better standing for long-term success.

Spynn’s PR strategies equip Indian startups with the tools to navigate funding surges, enhance credibility, and drive growth. By securing impactful media coverage and managing reputation effectively, startups can strengthen investor confidence and expand their market presence. As India’s startup ecosystem evolves, PR remains an indispensable asset for sustained success.