Pay off Credit Cards or Auto Loan?

[TryN2Rebuild]

I am trying to fiugre out which to pay off. Can anyone tell which is better to pay off? Which will help my score more?

[Anonymous]

You should post details; information that can help people answer your question better.

A simple answer would be to pay off whichever has a higher interest rate, assuming your debts are about equal.  

[MarineVietVet]

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@ewingerter wrote:

I am trying to fiugre out which to pay off. Can anyone tell which is better to pay off? Which will help my score more?

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Since credit card utilization is 30% of your total score then paying off the CC's would help your score more IMO. Installment loan utilization is factored into scoring but it's a very, very minor consideration.

What is your overall and individual card utilization right now?

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[TryN2Rebuild]

Most of my cards are at the max so I would say probably close to 80% if not more.

[Anonymous]

I agree with MVV - you'll see a far more significant FICO impact from paying down CC's (revolving) debt vs. paying down installment debt.

In addition, CC's are often much higher interest rates than installments.

Because many experts consider CC debt toxic (and I agree) my strong vote would be to pay as much of that down as possible.

It really does help if you list the cards, the CL and the balances for the most helpful feedback from folks.  Add the interest rate if you like - some debt snowball versions consider interest rate.  I tend toward the basic snowball approach - pay off small balances first, then keep snowballing payments into the next larger balance.  I like the psychological lift from being debt-free (or PIFing) on as many cards as possible.  It helps retrain the brain - it can be overwhelming to learn new spending/paying habits and we all need a little extra somethin somethin to keep us going forward.  Seeing those zero balances on more and more cards is that little somethin somethin that a lot of folks like.

[chasmith]

I personally would pay credit cards first, and agree with others that that will have a larger score impact.  Chances are that you pay a higher interest, but a lower mointhly payment on CCs but don't be fooled, paying those balances down first will almost always be the better choice.  Also, if something happens you can use the credit again in an emergency, if you pay down your auto loan and are still 80% or more util on CC you have little room to maneuver.

[Anonymous]

The cards first...they usually have a higher interest rate. Paying them will lead to lower future monthly payments freeing up cash.

Installment loans are a fixed payment so if you pay most of it off you'll still have to cover the standard payment every month until its paid in full.

Paying the CC debt will also significantly boost your scores.