My first question...ready for your advice!

[zan987]

My utilizations is very high...my limit is $2800 and I owe $2400.

[zan987]

Thanks for the link...I found a lot of useful information!

[PapasWifey]

First of all, CONGRATS on your bonus!! Not sure how much it will be, but if it's enough to pay down your current cc, then I would definitely say that's not a "small" bonus .

Secondly, I agree with what's said so far. Pay down your cc, and keep your util low. This will help you greatly financially (avoiding the compounding interests over the next few months), and also credit-wise (your score will definitiely thank you!)

[Anonymous]

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@FrugalRican wrote:

Pay the credit card. The interest keeps compounding on whatever balance you have.

The interest on the loan is already fixed, it'll be the same whether you pay more or less, unless you paid it off in full (which seems to be what you want to do)... but still, if you pay off the credit card you don't have to worry about the extra interest from that.

Anything you used to pay on the credit card, use that to pay the car loan in addition to what you already pay on it.

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This is definitely incorrect information.  Interest on a car loan, just like a credit card, is compounded daily.  If you pay parts of a car loan off early, you will pay less over time.

The reason to pay the credit card, however, is twofold as others have mentioned.  First, it has a higher interest rate than the car loan.  Second, it will have a huge positive impact on the credit score.  The car loan has less interest and no impact on the credit score.

[FrugalRican]

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@Anonymous wrote:

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@FrugalRican wrote:

Pay the credit card. The interest keeps compounding on whatever balance you have.

The interest on the loan is already fixed, it'll be the same whether you pay more or less, unless you paid it off in full (which seems to be what you want to do)... but still, if you pay off the credit card you don't have to worry about the extra interest from that.

Anything you used to pay on the credit card, use that to pay the car loan in addition to what you already pay on it.

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This is definitely incorrect information.  Interest on a car loan, just like a credit card, is compounded daily.  If you pay parts of a car loan off early, you will pay less over time.

The reason to pay the credit card, however, is twofold as others have mentioned.  First, it has a higher interest rate than the car loan.  Second, it will have a huge positive impact on the credit score.  The car loan has less interest and no impact on the credit score.

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Ugh, I totally screwed that up.

Kudos to catching that, I meant to say that the payment is fixed on the loan, not the interest.