@dinomosin wrote:
I am 3 1/2 years into a 6 year auto loan with a high interest rate (16.39%, my score was high 500's in 2007) that I have been unable to refinance now that my score is 695 because I owe more ($12000) than the car is worth. My aunt is going to pay it off for me and only charge me 5% interest. Will this help my credit score at all? My revolving credit is $18000 out of $39000 limit.
Hello and welcome to the forums.
Paying off installment loans usually doesn't affect a score very much because it is secured debt and it's not scored nearly as heavily as revolving debt.
Is your plan to help your score or save money? Paying down your credit card debt is the fastest way to help your score at this point. Right now your utilization is 42% and that's pretty high. What interest rate are you paying on those cards? If the rates are equal to or higher than the 16.39% you are paying on the car it might be better to use those funds on the CC's. Paying off the CC's might help your score and save money.
From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774
"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".
