cancel
Showing results for 
Search instead for 
Did you mean: 

Order of Paying Things Off?

tag
Anonymous
Not applicable

Re: Order of Paying Things Off?

Thats exactly what i was thinking i just didnt know if i would see a big enough push in credit that it would be worth hitting the cards before the navy fed loans. Ultimately im going to need to be making a car purchase soon no matter if i like it or not and i just cant make myself sign 24% on a loan of that magnitude. Do you think i would see a signiificant enough boost in my credit to push me into the 675+ range cutting the CC debt down to one card that i keep sub 10% just to report? Or would paying the 12k off in 4-5 months make more sense as its a guaranteed 10 or so percent loan through Navy once i pay them down. I realize this is a few questions in one but im just trying to plan debt pay offs around a vehicle as well as both are top priority right now. I know cash for a cheaper car is always an option too just trying to look for something with a factory warranty ect since i now have a good 120 mile a day round trip for work.

Cheers thanks again

 

Message 11 of 17
Anonymous
Not applicable

Re: Order of Paying Things Off?


@Anonymous wrote:

Thats exactly what i was thinking i just didnt know if i would see a big enough push in credit that it would be worth hitting the cards before the navy fed loans. Ultimately im going to need to be making a car purchase soon no matter if i like it or not and i just cant make myself sign 24% on a loan of that magnitude. Do you think i would see a signiificant enough boost in my credit to push me into the 675+ range cutting the CC debt down to one card that i keep sub 10% just to report? Or would paying the 12k off in 4-5 months make more sense as its a guaranteed 10 or so percent loan through Navy once i pay them down. I realize this is a few questions in one but im just trying to plan debt pay offs around a vehicle as well as both are top priority right now. I know cash for a cheaper car is always an option too just trying to look for something with a factory warranty ect since i now have a good 120 mile a day round trip for work.

Cheers thanks again

 


Ok, here is the thing - you DO get dinged for not having a signifigant portion of your installment balances paid down -but its a small ding - VERY small, not much more than a handful of points. OTOH, multiple maxed out cards are a huge red flag to FICO and is literally DEATH to a clean report. Getting your UTI to ideal, with only one card reporting a balance of less than 10% could easily, and I'm NOT KIDDING, EASILY vault you well into the 700's. Don't even consider dropping extra money on the installment loans until your UTI is down to less than 20% Seriously.

Read my fast repayment strategy - it may be just what you are looking for:
My Strategy

Message 12 of 17
Anonymous
Not applicable

Re: Order of Paying Things Off?


@Anonymous wrote:

I had recently applied for a car loan and got the score back from a print out where they pulled TU. So im assuming thats close and not pushed up at all from honda as thats significantly lower than before i ran the cards up. 

Right now the cards are as follows

 

Usbank school card-577.00 balance (800.00 limit)

Usbank cash rewards-716.00 balance (1000.00 limit)

Synchrony bank HHgreg-maxed at 1k

Synchrony bank furniture-maxed at 1k

Synchrony bank paypal-maxed 500

NFCU-3500 balance 4k limit

 

The only real issue is the navy card but everything else can be paid off in a month probably in the position im in now being rent ect free for a while. Trying to keep the beater up as long as possible also to prevent a high interest car loan. But as far as collections or anything i've never missed a payment and nothing is past due so no baddies to worry about so far. Knock on wood.

 


That might be your auto-enhanced score - your other scores could be considerably higher if you don't have any auto loans on your reports. I would suggest visiting the Credit Check Total website and sign up for their 7 day trial for a dollar. You'll get your real FICO 8 scores. Spend 45 dollars to get all of your FICO scores here if you want to see some of the other FICO score variants.

Message 13 of 17
Anonymous
Not applicable

Re: Order of Paying Things Off?


@Anonymous wrote:

I had recently applied for a car loan and got the score back from a print out where they pulled TU. So im assuming thats close and not pushed up at all from honda as thats significantly lower than before i ran the cards up. 

Right now the cards are as follows

 

Usbank school card-577.00 balance (800.00 limit)

Usbank cash rewards-716.00 balance (1000.00 limit)

Synchrony bank HHgreg-maxed at 1k

Synchrony bank furniture-maxed at 1k

Synchrony bank paypal-maxed 500

NFCU-3500 balance 4k limit

 

The only real issue is the navy card but everything else can be paid off in a month probably in the position im in now being rent ect free for a while. Trying to keep the beater up as long as possible also to prevent a high interest car loan. But as far as collections or anything i've never missed a payment and nothing is past due so no baddies to worry about so far. Knock on wood.

 


How much monthly income are you bringing in right now?

Message 14 of 17
Anonymous
Not applicable

Re: Order of Paying Things Off?

Love the link appreciate all the valuable info! I think im going to be tackling the CC;s first and then seeing where that bumps me up and then go from there. Would it be beneficial at all to get a small personal at the same or less interest than the CC's to help pay the cards down faster? Since it doesnt seem like installments hurt the credit like maxed cc's do? Kind of transfer the cc balance to a loan i suppose.

Bringing in roughly 2500 a month extra cash after bills right now. Opted to room with someone else for a while until i can get things situated.

Message 15 of 17
bdhu2001
Valued Contributor

Re: Order of Paying Things Off?


@Anonymous wrote:

I had recently applied for a car loan and got the score back from a print out where they pulled TU. So im assuming thats close and not pushed up at all from honda as thats significantly lower than before i ran the cards up. 

Right now the cards are as follows

 

Usbank school card-577.00 balance (800.00 limit)

Usbank cash rewards-716.00 balance (1000.00 limit)

Synchrony bank HHgreg-maxed at 1k

Synchrony bank furniture-maxed at 1k

Synchrony bank paypal-maxed 500

NFCU-3500 balance 4k limit

 

The only real issue is the navy card but everything else can be paid off in a month probably in the position im in now being rent ect free for a while. Trying to keep the beater up as long as possible also to prevent a high interest car loan. But as far as collections or anything i've never missed a payment and nothing is past due so no baddies to worry about so far. Knock on wood.

 


You haven't said how much money you have available, but you've mentioned two goals.  Paying off bills and getting a boost in FICO ASAP, because you're driving a beater.  You're maxed on most of your accounts.  I would pay everything below 30% (except installments) and then pay off everything using the snowball affect of lowest balance first.  

This would give you the highest immediate FICO boost while you're paying off everything.

Original Mortgage maturity Sept 2044; Refi maturity Dec 2030
Starting Score: EX 751 EQ 720 TU 737 on 4/9/14
Current Score: EX 849 EQ 835 TU 843
Goal Score: 850


Take the myFICO Fitness Challenge
Message 16 of 17
Anonymous
Not applicable

Re: Order of Paying Things Off?

Looks like CCT is showing the following

646-Experian

605-Transunion

607-Equifax

So a little different than what the dealer's results were. Makes me think a 700 shouldnt be far off at all!

Message 17 of 17
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.