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Pay off credit card or car

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vanillabean
Valued Contributor

Re: Pay off credit card or car

Ideally you would zero your credit card before the 0% expires. Extra money would go towards the car to minimize interest from the relatively high 6.9%, sooner than later. As for your score, an installment loan may help you past the halfway point, but hurt you if not yet at it. With one of each reporting a balance, I can well imagine that a ~90% installment util is worse than ~30% on a card.

Message 11 of 14
AdPray123
New Contributor

Re: Pay off credit card or car

Thanks everyone. The car can essentially be paid off by the end of next year but I think it is smarter for me to try to bring down that credit card. That's where it will end up costing me more. You guys are awesomeness! Have a great day.

Message 12 of 14
hot4u
Established Contributor

Re: Pay off credit card or car

Agree.. Pay off Credit Card.. The Installment loan on car helps- adding another form of credit mixture for your score.


(Chase)- Freedom, CSP®, United MileagePlus® Explorer, Marriott Rewards® Premier, Penfed cash+ rewards/Promise/Defender.
Amex’s- BCE, Hilton, SPG®, PRG® and Blue®, NFCU Cash Rewards, FHB Destinations World Elite.
- Amex Centurion,(Citi) Executive/Platinum® Advantage


Alaska Airlines
Message 13 of 14
sjt
Senior Contributor

Re: Pay off credit card or car

Pay off the credit card debt.

American Express: Platinum Charge, Optima, Business Gold, Delta Business Reserve, Business Cash, Business Plus
Barclays: Arrival+ WEMC
Capital One: Savor WEMC, Venture X Visa Infinite
Chase: Freedom U Visa Signature, CSR Visa Infinite
Citibank: AAdvantage Platinum WEMC
Elan/US Bank: Fidelity Visa Signature
Credit Union: Cash Back Visa Signature
FICO 08: Score decrease between 26-41 points after auto payoff (11.01.21) FICO as of 5.23, EX: 812 / EQ: 825 / TU: 815
Message 14 of 14
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