Should I stop or should I go..

[Anonymous]

Current Situation:

TU    772

EQ   772

EX    783

HELOC 156K (classified as mortgage by TU and EQ and revolving by EX)

Two Auto Loans (classified Installment) Total balance of $18K

159K in Available credit on revolving. Currently balances on these accounts are approximately $1500.

No negs on anything. Oldest account 18 yrs. Average age is 6 years.

7 accounts with balances. 4 inquiries (two real estate not within a two week period on some land I sold earlier in the year and had to bridge loan, one more  to replace a vehicle totaled by another driver and the last because I was not paying attention to what I was doing) These have dropped my scores somewhat for the short term.

Now to my question, I have a BOA Gold Option Loan with a $44K credit limit. This is a LOC and not a HELOC. (I can get a zero transaction fee 8% rate on this credit line. This account did report in the past as installment. I wanted to take enough to pay down/off the installment loans. I was thinking of leaving a six month balance on one in case the LOC goes revolving rather than installment as in the past. This would leave three accounts with balances plus the credit card stuff that gets paid every month before interest accrues. Am I going to see a significant decrease by doing this? I am just trying to simplfy and would rather hold my vehicle titles instead of the bank. I do not want to outthink myself on this though.

Comments?

[Anonymous]

Is the rate on the LOC less than the rate on the car loans?  How many payments left on the car loans? The fewer payments left the less it impacts score (so starting 'new' with the LOC)

[Anonymous]

The rate is half a point better on the LOC. One car loan will pay off in six months. The other will be two years.

[Anonymous]

6 months of what time 24, 36, 48, 60? ) leave it alone.  Can you double up a payment or 2?

Same for the 2 year loan - how many total payments?

Less than half then leave it on the 2 years left loan - otherwise it's a balancing of pros/cons on the new installment time frame vs the age of this loan and their lesser impact.

[Anonymous]

Both were 60 month loans. I took one out 39 months ago and have been paying extra every month to have it pay off in 45. The other has been out for six months and will pay off in 24 months more with the extra payments I have made.

Message Edited by prowen on 11-09-2007 10:38 AM

[Anonymous]

I do appreciate the responses and will check back for anyone else that cares to comment.

[Anonymous]

I would think with your excellent scores any scenario you choose would still leave you quite a ways above the threshold of dropping below the highest rated group/best available rates on any credit you seek.  5 or 10 points still leaves you in the lowest default borrowing group, so the only difference to a bank would be if they consider installment/revolving levels in their analysis of new credit.  Either way I think anyone would loan you money!

I would recommend doing whatever makes you feel the most comfortable.  If you don't want the bank having the titles, make the switch.  Good luck.