topic Truck totaled...Will need new one soon. in Auto Loans

Truck totaled...Will need new one soon.

Anonymous — Mon, 17 Nov 2008 03:55:59 GMT

My 06 Tundra was recently totaled and now I'm in need of a new truck. I qualified for 0% two years ago when I bought this truck. Due to high credit card balances my experian score is a 682. My balance on the loan is $15,300 How long will it take to show up on my credit report once they pay it off? Will it raise or lower my score? Would I have to wait for it to be off to be approved for another loan. Should I try to pay on my credit card balances to raise my score? I have 2000-2500 to play with if it will make a difference quick enough. Here are the balances and limits:

1967 3600

1400 1500

2200 2300

Re: Truck totaled...Will need new one soon.

Anonymous — Mon, 17 Nov 2008 04:28:24 GMT

I hope you have GAP insurance!

Paying off the 2200/2300 in full would give you the most points. I suggest you do that...and come with at least $500 to the table for the car you will have to buy.

Re: Truck totaled...Will need new one soon.

Anonymous — Mon, 17 Nov 2008 05:51:47 GMT

Thankfully I was not upside down so that helps things. So you think I would be best served paying off the $2300? I was thinking about spreding it around a bit by paying $1000 on the 2200/2300 and $1000 on the 1400/1500. Any idea how much my score could improve? Also when the truck loan is paid off what difference will that make positive or negative?

Thanks.

Re: Truck totaled...Will need new one soon.

Anonymous — Mon, 17 Nov 2008 17:34:21 GMT

I agree with Mel... pay down the 2300 and tackle the 1400/1500 asap. Unless you have other installment loans you will more than likely lose points when the truck is paid off because you won't have the credit mix.

Re: Truck totaled...Will need new one soon.

Anonymous — Tue, 18 Nov 2008 02:30:56 GMT

Thanks guys. How much could it drop when the truck rolls off? 10 points, more? Would paying down the 2200 offset the drop or maybe go higher than 682? I would like to be at 700. I'm wondering if I should just go buy another one before it drops off?

Message Edited by jj260 on 11-17-2008 06:30 PM

Re: Truck totaled...Will need new one soon.

Anonymous — Tue, 18 Nov 2008 04:55:28 GMT

The loss of the installment loan in effect won't matter much.

The best and most effective way to handle your score is to pay down the utility on your credit cards.