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Credit Card or Student Loan? Which has more impact?

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Anonymous
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Credit Card or Student Loan? Which has more impact?

Which would have more impact on bringing up my FICO score in the short term:  Pay down my last credit card to 30%, or pay down my student loan to 60%, or pay both down to 70%?  Does one impact my score more than the other?  Thanks for your time for this nube.

Message 1 of 7
6 REPLIES 6
fused
Moderator Emeritus

Re: Credit Card or Student Loan? Which has more impact?

Credit card (revolving accounts) utilization carries far more weight in FICO scoring than installment debt does. You will gain many more points by paying down your CC debt compared to your installment debt. What is the credit limit and balance on your credit card?

Message 2 of 7
Anonymous
Not applicable

Re: Credit Card or Student Loan? Which has more impact?

Limit is $3,000; I have it paid down to $2,500; I was going to pay it down and maintain it to/at $900 - should I keep it at 20%?

Message 3 of 7
fused
Moderator Emeritus

Re: Credit Card or Student Loan? Which has more impact?

To give you better advice, can you tell us about your other credit cards, if any?

 

If you have other CCs, what are their credit limits and balances?

Message 4 of 7
Anonymous
Not applicable

Re: Credit Card or Student Loan? Which has more impact?

I have another VISA - $1,000 limit; paid down to $256 - I'm just paying the minimum payments on it, now.

 

I have 2 cards that got canceled by the CC companies:

Men's Warehouse - $466 limit; paid down to $166 - I'm just paying the minimum each month.

HSBC VISA - $1,600 limit; paid down to $569 - just paying the minimum.

 

Thanks for any help you can give!

Message 5 of 7
fused
Moderator Emeritus

Re: Credit Card or Student Loan? Which has more impact?

For max FICO points in the revolving utilization game, you want to have all of your CCs reporting a $0 balance except for one. For the one card reporting a balance, you'll want it reporting 1-9% util. It doesn't sound like you're in a position to do this, right?

Message 6 of 7
Anonymous
Not applicable

Re: Credit Card or Student Loan? Which has more impact?

I guess I am not quite in the position to do this; but I am getting close.  Based on another thread about paying down closed accounts; it appears I should probably pay down all of my accounts at the same rate, until I get to 9%.

Message 7 of 7
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