I was just wondering if paying off my installment accounts would help my credit score, or hurt it. I want to buy a house in the next year so I am trying to do two things.
1. Get rid of larger bills to have more money for mortgage
2. Get a high FICO score to get the best rate possible
Right now I have two car payments every month totaling around $700 a month. Both of these are installment accounts with a combined total of around $18k. My thought was that if I could pay both of these car loans off I could have that $700 a month freed up to help pay the mortgage, rather than paying the car payments and being out 700 bucks a month for those bills. I would rather have that money to help me with the mortgage.
My question is, if I pay off the $18k of debt on these car loans what will that do to my FICO? I'm hoping I can kill 2 birds with 1 stone here and get rid of the monthly bill, while also improving my score. Also, I have about $4k in school loan debt that I could also pay off, however I am less concerned about this because my monthly payments are less than $100
Thanks to everyone in advance for your help.
Message Edited by HkySk8r187 on 02-18-2008 11:30 PM
