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Trying to raise my score - pay off what debt first?

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Contributor

Trying to raise my score - pay off what debt first?

My score is 624
I have a mortgage and a car payment that equal $2000 total.
I’m in college still but I’m 29.
I’m making about 65K take home.
I use student loans to pay for tuition.
I have 9K in credit card debt.

Is it better to pay of student loan interest and loans first?

Or credit debt ?

Or auto debt?
525 score as of 9/2015 --- only way to go is up!
Message 1 of 7
6 REPLIES 6
Super Contributor

Re: Trying to raise my score - pay off what debt first?


@Sk323i wrote:
My score is 624
I have a mortgage and a car payment that equal $2000 total.
I’m in college still but I’m 29.
I’m making about 65K take home.
I use student loans to pay for tuition.
I have 9K in credit card debt.

Is it better to pay of student loan interest and loans first?

Or credit debt ?

Or auto debt?

Best to pay down credit cards first.


FICO 8: EQ 735 TU 760 EX 729 Total revolving limits 719k (592500 reporting)
Message 2 of 7
Senior Contributor

Re: Trying to raise my score - pay off what debt first?


@SouthJamaica wrote:

@Sk323i wrote:
My score is 624
I have a mortgage and a car payment that equal $2000 total.
I’m in college still but I’m 29.
I’m making about 65K take home.
I use student loans to pay for tuition.
I have 9K in credit card debt.

Is it better to pay of student loan interest and loans first?

Or credit debt ?

Or auto debt?

Best to pay down credit cards first.


+1.  There is also a method to the madness in how to attack the CC debt given that your stated primary goal is to raise your credit scores. 

 

What is the sum total of the credit limit for all of your cards, and for each card that has a balance what is its current balance and its credit limit? Total utilization across all cards and utilization on each card are both relevant.

(5/2019)
FICO 8 (EX) 790 (TU) 808 (EQ) 791
FICO 9 (EX) 829 (TU) 820 (EQ) 829

$800K+ club
Message 3 of 7
Regular Contributor

Re: Trying to raise my score - pay off what debt first?

+1.  Pay off credit card debt first.  That debt has the highest interest as well as affecting your scores the most due to utilization, depending on your balances relative to your credit limits.

 

Post each card's balance, limit and APR% and we can advise further.

 

Gardening starting 8/1/19
Goal: 0 Inquiries and diamond spade
July: EX 813, TU 821. 3 CCs, 1 mortgage, 5 inquiries.
Message 4 of 7
Contributor

Re: Trying to raise my score - pay off what debt first?

So my Credit debt - was actually a revolving line that I closed because it was becoming unmanageable. So it 9K - not accruing interest or additional balance. On a payment plan of $170 a month for another 2.5 years or so.

Car loan is about 25K at 4.9% with a credit union. Payments are about $650.

Student loans are at about 25K now with payments deferred until I graduate.

When I look at my score on credit karma - it looks like the student loans are hurting me the most because their balances are the only ones increasing - not decreasing.

And maybe the CRAs don’t know payments are deferred.

It just looks like higher and higher balances

As for my mortgage - I had a misstep and had a late payment about 6 months ago. I’m staying on track with all my payments now / this way I can refinance in about 6-12 months.

All in all - I’m struggling.

Ive cut out a lot of unnecessary spending.

We don’t eat out.

Sure my auto loan is high - but I’m already under water on it - so hard to back out now. It’s a Toyota Tacoma that I think is a good investment and I will keep forever.

Anybody have any input?

Should I just pay the student loan balances down each month - so the balances lower ?
525 score as of 9/2015 --- only way to go is up!
Message 5 of 7
Regular Contributor

Re: Trying to raise my score - pay off what debt first?

Credit Karma uses Vantage scores which don't reflect actual FICO scores.  Use CK to get report detail but take their scores with a very large grain of salt. Smiley Happy

 

I'd get actual FICO scores if possible, there's places where you can get them for free (Discover Scorecard is one place that gives EX score).  Some bank/CC websites will give a FICO score if you have an account there.  You could always get them here on myFICO, but it costs some money to do so, but you can get reports and scores from all 3 bureaus.

 

The late on your mortgage is the biggest issue affecting your scores at this point (if it was 30 or more days late)... as long as you keep it current only time will age this off eventually.

 

 

Gardening starting 8/1/19
Goal: 0 Inquiries and diamond spade
July: EX 813, TU 821. 3 CCs, 1 mortgage, 5 inquiries.
Message 6 of 7
Super Contributor

Re: Trying to raise my score - pay off what debt first?


@Sk323i wrote:
So my Credit debt - was actually a revolving line that I closed because it was becoming unmanageable. So it 9K - not accruing interest or additional balance. On a payment plan of $170 a month for another 2.5 years or so.

Car loan is about 25K at 4.9% with a credit union. Payments are about $650.

Student loans are at about 25K now with payments deferred until I graduate.

When I look at my score on credit karma - it looks like the student loans are hurting me the most because their balances are the only ones increasing - not decreasing.

And maybe the CRAs don’t know payments are deferred.

It just looks like higher and higher balances

As for my mortgage - I had a misstep and had a late payment about 6 months ago. I’m staying on track with all my payments now / this way I can refinance in about 6-12 months.

All in all - I’m struggling.

Ive cut out a lot of unnecessary spending.

We don’t eat out.

Sure my auto loan is high - but I’m already under water on it - so hard to back out now. It’s a Toyota Tacoma that I think is a good investment and I will keep forever.

Anybody have any input?

Should I just pay the student loan balances down each month - so the balances lower ?

No, concentrate on the revolving line of credit.

 

And please disregard Credit Karma. That will give you serious misinformation.


FICO 8: EQ 735 TU 760 EX 729 Total revolving limits 719k (592500 reporting)
Message 7 of 7
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