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What helps more/faster?

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Anonymous
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What helps more/faster?

Which would help my score more & quicker & how long to show effect? Paying off $20,000 in credit card debt or paying off car lease as a purchase ($20,000). Thanks.
Message 1 of 9
8 REPLIES 8
Anonymous
Not applicable

Re: What helps more/faster?

The credit card debt will help your score faster.
Message 2 of 9
Anonymous
Not applicable

Re: What helps more/faster?

Credit card debt, by far.  I just read an article this morning on MSN that quoted Barry from MyFico saying that paying down installment loans has little to no impact to your credit scores.  Paying down revolving debt has a very positive impact on your scores --- depending on total balances and available credit of course.  Smiley Very Happy
Message 3 of 9
marty56
Super Contributor

Re: What helps more/faster?

Pay the CC.
 
You score will feel the affects when the CCC reports the lower balance the the CRAs.  Best case is if you pay a fewe days beforethe statement reporting date,  Worst case 2 or 3 months.
1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 4 of 9
Anonymous
Not applicable

Re: What helps more/faster?

It would actually help your score more if you pay down my revolving balances Smiley Very Happy
 
Just kidding!
Message 5 of 9
Bethm1026
Contributor

Re: What helps more/faster?

Agree with everyone else! CCS !!!!!!!!!!!!
I saw my projected scores today with paying 3 cards down to 50% and wow almost 60 pts increase!!!
10/2007 TU 545 EX 538 EQ 529
2/2008 TU 628 EX 608 EQ 587
3/2008 TU 636 EX 627 EQ 613
4/2008 TU 637 EX 618 EQ 621
Message 6 of 9
Anonymous
Not applicable

Re: What helps more/faster?

Credit card would be best to pay off. Always remember, revolving credit holds a big junk of weight on your credit score over any other credit you may have. Just to give you an example: I never needed credit before so just decide to get some, don't know why, just did. So, I went out and financed a car for $20,000.00. I paid the car for 6 months (because that is the time it takes to get fico score) on the 6th month I paid down 97% of the loan just leaving a little balance to sit on my credit a little longer to help me get a good score. So now, my debt to credit ratio is only 3% NOT 100% AS it was when I financed it. So, to continue to help my credit, I went to get a cc. Got one through HSBC (orchard bank) with a $300.00 credit line. I used $268 of the credit so I can show activity on my report. Well, even though I paid 97% of the car loan, my fico came in under 600 all because I used about 89% of my revolving credit! It was as if my car loan and the low balance was never there! Who would have thought that by me useing B.S. $288 on a $300 cc would have more weight then me paying down 97% of a $20,000 car note in just 6 months. Go figure!!
 
I hope this helps. Always keep cc balances low, if not, I will bite you were the sun does not shine, ouch!! Smiley Happy 
Message 7 of 9
Anonymous
Not applicable

Re: What helps more/faster?

MY WIFE AND I SPENT 1HR LAUGHING AT MY ENDING STATMENT. I MEANT TO SAY "IT" WILL BITE YOU WHERE THE SUN DOES NOT SHINE, NOT I! ha! STILL LOL!!!
Message 8 of 9
MidnightVoice
Super Contributor

Re: What helps more/faster?



TexCredit wrote:
 I just read an article this morning on MSN that quoted Barry from MyFico saying that paying down installment loans has little to no impact to your credit scores.  Paying down revolving debt has a very positive impact on your scores --- depending on total balances and available credit of course.  Smiley Very Happy


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Message 9 of 9
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