Credit Cards Center Credit cards from our partners
Reply
New Visitor
Posts: 2
Registered: ‎09-10-2010
0

Which should I pay off?

Hi,

I just sold a car and have enough money to either pay off one big personal loan or several credit cards.  I don't know which I should pay off...which would build my credit better? 

 

Thanks

Frequent Contributor
Posts: 388
Registered: ‎10-26-2009
0

Re: Which should I pay off?

I would payy of the cards first, especially if I had high utilization.

 

That would be my answer if you are just looking at FICO score.  There are other factors however.  One is the interest rate being charged.  If you're paying 8% on the loan and 0% on the cards you might want to pay the loan off.  What about cash flow?  I once had the choice of paying off a number of cards and saving $225 a month in payments, or paying off a loan and saving $1,000 a month.

 

So, really, the question is what are you trying to accomplish?

 

Simply for FICO, probably the cards.



Starting Score: TU 672 EQ 654 10/20/09
Current Score: TU 775 EQ 783 EX 799 (PLUS)
AMEX Delta Platinum $35K, NFCU Visa Signature $30K, HHonors Reserve Visa $35K, WF $13.5K, IHG Rewards Club MC $25K
Epic Contributor
Posts: 25,863
Registered: ‎10-23-2007
0

Re: Which should I pay off?

+1

Fico Scores 8: EX 694. TU 689. EQ 658. 05/26/2015
New Visitor
Posts: 2
Registered: ‎09-10-2010
0

Re: Which should I pay off?

Thank you!  I didn't even know I had a reply until today.  I just want to build better credit.  Do you know how much scores can jump when cc's are paid off?  There may be soemwhere for me to find it on here, so I apologize if I've overlooked.

 

Epic Contributor
Posts: 25,863
Registered: ‎10-23-2007
0

Re: Which should I pay off?

depending on current util, you could see a very large jump when going from a number of accounts having large balances, then having no balance at all

Fico Scores 8: EX 694. TU 689. EQ 658. 05/26/2015
Moderator
Posts: 17,419
Registered: ‎07-14-2009
0

Re: Which should I pay off?

 


brandes815 wrote:

Thank you!  I didn't even know I had a reply until today.  I just want to build better credit.  Do you know how much scores can jump when cc's are paid off?  There may be soemwhere for me to find it on here, so I apologize if I've overlooked.

 


If your report is clean you should see a bump but exactly how much is very tough to say. Just feel good about paying down CC debt.  Smiley Happy

 

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work


Epic Contributor
Posts: 21,631
Registered: ‎03-19-2007
0

Re: Which should I pay off?

From simply a FICO scoring perspective, it is a no-brainer.

Pay down revolving (CC) util over installment util.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.