I have 600 dollars: which account should I apply it to?

[Anonymous]

I finally got my new paycheck for my new job and I have 600 to spare and want to apply it to a account to get maximum return.

These are the choices

Personal Loan: $1,100 balance 18% interest
CLOC: $1,375 18% interest

I would have normally gone for the one with the highest interest but they both have the same interest. Which one would be best to work on?

[dynamicvb]

What were the original balances on the loans? Loans have utilization just like credit cards, but I'm not clear if the cutoffs are the same. Getting the utilization down as low as possible without actually paying it off will help the most in terms of scores.

[Anonymous]

Loan: Originally 2,500 dollars and now down to 1,100

CLOC: limit is 2,000 with 1,300 owed

[Anonymous]

If it were me, I’d throw the majority if not all at the CLOC. That’s a revolving line and getting it lower in utilization likely helps similarly to doing so with a credit card (someone correct me if I’m off base here). Since the loan is an installment and helps your score simply by paying on time, I’d keep it going as-is.

[JoeLuvsHisCredit]

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@Anonymous wrote:
If it were me, I’d throw the majority if not all at the CLOC. That’s a revolving line and getting it lower in utilization likely helps similarly to doing so with a credit card (someone correct me if I’m off base here). Since the loan is an installment and helps your score simply by paying on time, I’d keep it going as-is.

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+1111111

[pinkandgrey]

I'd definitely put it toward that CLOC. If you have any reservations, then just put $500 toward the CLOC and the other $100 toward the personal loan or something. Congrats on the new job! 

[Anonymous]

+1 To all the recommendations to put it toward CLOC for the reasons previously stated by other respondents. 

[pamon]

Agree with others on the CLOC payments. Congrats on the new job. Always a good thing.