which to pay off, CC or Personal Loan

[Anonymous]

Wondering if this has been asked before. Is it better to pay off a personal loan or reduce balance on a CC?

Currently, I have 2 personal loans and CC unitlization at 50%

Im hoping to boost my score so i can get a personal loan for consolodiation and lower APR

Thoughts?

[Anonymous]

CC, no questions asked.

Revolving debt is much more important (score-impacting) than installment debt.  Even outside of scoring, 9 times out of 10 one will pay more interest on revolving debt than they will on installment debt, so from a financial perspective getting rid of revolving debt usually makes the most sense as well.

50% overall revolving utilization is costing you significant Fico points.

Going from 100% aggregate revolving utilization down to ideal (1%) could be good for 70-100 Fico points depending on scoring model.

Going from 100% aggregate installment loan utilization down to ideal (1%) maybe be good for 25 points or so just for comparison purposes, with the bulk of those 25 points coming from the crossing of the 10% threshold resulting in loans being "significantly paid down." 

[SouthJamaica]

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@Anonymous wrote:

Wondering if this has been asked before. Is it better to pay off a personal loan or reduce balance on a CC?

Currently, I have 2 personal loans and CC unitlization at 50%

Im hoping to boost my score so i can get a personal loan for consolodiation and lower APR

Thoughts?

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As @Anonymous correctly observes, your best bet is to concentrate on the revolvers.

[Mr_Mojo_Risin]

BBS already took care of you here but I wanted to say I dig your handle. 

I assume it's a nod to Metallica? 

[Anonymous]

It is, Metallica is the best  

[Mr_Mojo_Risin]

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@Anonymous wrote:

It is, Metallica is the best  

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Right on to that! 

The kings of metal 🤘

[JakeRogue]

As others have said, CC first. The interest on the CC will hurt your more in the long run than the interst on a personal loan and your credit score is more impacted by the credit card debt than personal loan debt.

Cheers!