DId I make a HUGE mistake?

[Anonymous]

Does this apply to personal installment loans because I paid off my first ever installment loan which was a personal loan from Regions bank and my credit score rose 35 points.

I paid on this loan for over a year then paid the last 500 off early.

[EdwardMH]

My thoughts were to use the Car payment to pay off the other debt faster, I hope to be debt free by December 2017 or close to it. I have a desire to either move to Arizona and buy my first home or continue renting and save enough money to pay cash for a full time RV and travel the US while my health allows.

[Anonymous]

I think you're on track.  Being debt free outweighs a (probably temporary) point loss on your FICO scores, especially since the only purpose of having a FICO score is so lenders can make decisions about you - but you aren't planning to borrow any money anytime soon, anyway.

If you need to improve your "credit mix" short-term you could consider a small personal loan or something along those lines to add another installment loan back into your profile - but I wouldn't do that until a couple of months ahead of mortgage shopping, if that's the way you decide to go, or RV financing time, or whatever.  No need to borrow - and pay interest on - money you don't need, particularly when being debt free is the ultimate goal.

[MyLoFICO]

I don't mind helping out. If you need it in the mix, you can make my truck payments and I will report it as an open auto loan. 

[SouthJamaica]

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@EdwardMH wrote:

I have  2 signature loans and 3 credit cards $35,000 at 65% utilization, My plan was to pay off the car and shove that extra $500 on the credit cards and loans to try to pay them all off by Dec. 2017 The cards should be paid off in 4-5 months.

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Don't sweat it, Edward, you're doing good.

As you pay down your loans and cards you'll see your scores rise.

If you tell us the number of cards, limits, balances, and the same with the loans, we can give you a recommended

target to maximize your FICO scores.

[EdwardMH]

I used my checking line of credit to pay off my NFCU MasterCard, Bestbuy card and my Paypal accounts the interest rate was lower.

My current debt is

NFCU Visa 15.40% $10,000 balance $8,000.99,

NFCU signature loan 17.750% $12,000 balance $10,237.18

NFCU Checking Line of Credit 15.90% $15,000 balance $12,040.42

USAA Signature Loan 17.75% $9,000 balance $7,394.28

outside min payments I have an extra $509.70 a month I can put on one bill a month from my payed off car payment. I thought to pay off the CLOC first but my NFCU Visa keeps growin more than the $250 a month I pay so is getting higher not lower.

[Anonymous]

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@EdwardMH wrote:

I used my checking line of credit to pay off my NFCU MasterCard, Bestbuy card and my Paypal accounts the interest rate was lower.

My current debt is

NFCU Visa 15.40% $10,000 balance $8,000.99,

NFCU signature loan 17.750% $12,000 balance $10,237.18

NFCU Checking Line of Credit 15.90% $15,000 balance $12,040.42

USAA Signature Loan 17.75% $9,000 balance $7,394.28

outside min payments I have an extra $509.70 a month I can put on one bill a month from my payed off car payment. I thought to pay off the CLOC first but my NFCU Visa keeps growin more than the $250 a month I pay so is getting higher not lower.

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What was the amount you paid to pay off ur car loan? Honestly you should of used that money to paid off credit card instead of car loan unless ur car loan interest  is above 18% or unless your credit cards all have the intro rate of 0% interest. Yes u might look at it now u have 510 a month to put into a credit card but if u were to use the money j used to pay off car loan to pay for ur highest interest credit u will save that interest

[EdwardMH]

Less than one extra payment paid it off a month early. I had payed $9000 a year ago when I had no extra debt. Total car loan was $31573.00 at 8.790% interest, I just wanted the extra $507 to go toward my debt sooner.

[StartingOver10]

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@EdwardMH wrote:

I used my checking line of credit to pay off my NFCU MasterCard, Bestbuy card and my Paypal accounts the interest rate was lower.

My current debt is

NFCU Visa 15.40% $10,000 balance $8,000.99,                 This one is at 80%

NFCU signature loan 17.750% $12,000 balance $10,237.18    This one is at 85.31%

NFCU Checking Line of Credit 15.90% $15,000 balance $12,040.42   This one is 80.2%

USAA Signature Loan 17.75% $9,000 balance $7,394.28     This one is 82.15%

outside min payments I have an extra $509.70 a month I can put on one bill a month from my payed off car payment. I thought to pay off the CLOC first but my NFCU Visa keeps growin more than the $250 a month I pay so is getting higher not lower.

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What is holding down your scores now is the high utility on each of the loans/cc's above.  Do what you have to do to get those under 80%, then under 70%, then under 60% etc.  I would start with the VISA if that one is growing more than going down.....throw that extra $500 on it each month to get it to reasonable levels. Then tackle the NFCU signaturre loan.  See if you can find some money by selling things around the house to make a lump sum payment. 

[RonM21]

Like everyone else is saying, make the decision on what's best for you financially first.