topic Re: Installment or Revolving? in Understanding FICO® Scoring

Installment or Revolving?

Anonymous — Tue, 11 Mar 2008 14:13:25 GMT

I have a high debt ratio but have the opportunity to bring that ratio more in line with an upcoming lump sum payment. Is it more favorable as far as the credit score is concerned to pay down my installment loans or revolving charges? Is it best to do this at once or preferred over a few months?

I still have work to do to bring my score up after the lump sum payment as I can not pay down all the debt but with the help of this forum and concentration I know it will happen

Thanks in advance for any and all help

Re: Installment or Revolving?

MidnightVoice — Tue, 11 Mar 2008 14:28:51 GMT

Personal opinion - pay off revolving. It is nearly always the highest APR and high revolving creit balances are a score killer

Re: Installment or Revolving?

Junejer — Tue, 11 Mar 2008 15:00:33 GMT

Hey doxydawg, welcome to the forum. If you haven't already, please read credit scoring 101 (helps tons) and other "stickied" threads. As MV said, revolving (much more risky type of credit-unsecured), so potential reward, for using it the way they want to see it used, is greater.

Re: Installment or Revolving?

Anonymous — Tue, 11 Mar 2008 15:11:56 GMT

Also, pay it all at once. There is no need to spread it out.