04-16-2017 11:22 AM
I have been stewing on this question for a few months now and I just need help.
My credit scores are in the 775 to 790 depending the bureau.
Credit card debt of 3200 - 0% until January 2018. The company has sent me offers for balance transfers to extend this to end of 2018 if I choose.
Student loan debt
3 loans all at 3.83 (but variable interest rate and it has been slowly going up). These are private and the final payment is due Oct 2018 (this can't be extended so this is the deadline).
I have about an extra 150 I can put toward something every month.
Should I pay down the 0% credit card, or put it toward the student loans (if I do that I would probably have two paid off by the end of the year).
I might need a new car in the next twelve months...it is better to pay the credit card and inch my score up? Or should I pay off the two loans which would be two less debts on my file?
I'm so confused!
04-16-2017 11:32 AM
with your scores, assuming they are fico scores, then the scores dont matter. you should focus on paying off the stuff that's costing you money in interest.
04-16-2017 11:40 AM
Like the other posters mentioned pay the highest I test first, which is probably your credit cards. Also, interest in student loans are tax deductible
04-16-2017 11:45 AM
Yeah you can pay off whatever you want, as increasing your FICO scores will have no bearing on getting a better auto loan interest rate a year from now since you're already in the top bracket.
04-16-2017 12:24 PM
04-16-2017 02:05 PM
04-16-2017 02:44 PM - edited 04-16-2017 02:47 PM
I agree, pay off the CC debt first, unless you know for a fact that you will be able to save $3200 by the end of 2018 to PIF the CC before the 0% promo expires. If you can do that while also putting additional payments to your student loan debt, then obviously that's the best situation. If you can't do both, then I say pay off the CC first. You can always play catch up on the student loans later.
Edit: Also, don't know if you can do this with private student loans, but is it possible to reconsolidate them and get a fixed interest rate?
04-16-2017 02:49 PM - edited 04-16-2017 02:50 PM
I vote for the CC debt, if you use those cards for everyday purchases too. Once that 0% expires, the interest rate will probably shoot to the moon.
Your scores overall are solid.
I wouldnt worry about those if you keep progressing in the manner you've been going and paying off your debt. With an auto loan/lease, your scores and with the assumption of adequate income/no baddies whatsoever on your report, you'd be a candidate for Tier 1 leasing or financing no matter what dealership you went to.
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