How Will Paying Off CC vs. Installmen
t Loans Affect Score?
07-20-2007 07:52 AM
I've just found this forum and I think it's great. I'm going to have a good time this weekend trying to read everything.
Hopefully some of the wise people may be able to answer a question. I've been slowing improving my score for over a year -- last year it was 588, now its 673. However, now I'm going to be coming into a bit of money and was wondering how to pay off debts to improve score. I've got one revolving account at 19% so that goes without doubt. However, I have an installment loan at 14.75% from my CU and a CC from the same CU at 11.9%, both with about the same balance. Should paying off one have a priority over paying off another as far as my score is concerned? Instead of paying off one, would it be better to split the money 50/50 to each? Also, if I do get even more money than anticipated, the next loans to payoff are all installments at about the same rates. Again, is paying down one account $1000 better than paying down two accounts by $500 each?
Any help/thoughts/insights would be greatly appreciated.