Hello-
I am planning to trade in my car in two months and buy a new one. I am trying to do what I can to improve my score (654 yesterday, EQ) before applying for the loan.
1) Auto:
What is the best thing to do with my current auto loan? I have about $1500 remaining on a $15,000 loan. I planned to pay it off with a lump sum this month and get the title free and clear before applying for the new loan.
But is there a benefit to having this auto loan open at the time I apply for the new one?
I have high utilization on my credit cards (55%, trying to get under 50% before applying) but I already learned from reading this forum the last two days that utilization % on installment loans does not factor into the utilization considered for my revolving debt?
2) Credit Line Increase
Any benefit to asking my credit card companies for a credit line increase to reduce my utilization %, or will that have a short-term negative effect on my score?
Thanks for any advice!