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Paying down loans

Regular Contributor

Paying down loans

So here is my question...

i have one baddy a few years old with $0 owed.

i have 1-3% usage on all my revolving accounts.

i have two small personal loans

should i pay the loans down to the next threshold ir two? ( they are fairly new)

would it impact my score some or not as much as when i paid down my cc's?

Community Leader
Mega Contributor

Re: Paying down loans

Credit util is more sensitive than installment loans. Loans really get their positive score impact once below 8.99%. Since your at 1-3% util on your cards. Not much wiggle room. Cant go any lower. Never hit 0%. If you can payoff 1 loan and leave 1 open. That helps your DTI. But if you pay early does it push the due date out is the question like a SSL. If not, then not much more you can do.

Homeowner Sept 2020. 2021 Explorer ST Chase 3.1%. Sharing my recovery after BK from learning here. Started 540's. EX FICO 9 801 as of 05/03/2023. I stayed around to pay it forward for those who helped me back then.
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Frequent Contributor

Re: Paying down loans

Not knowing the amounts or the terms of the personal loans, I would factor in the interest rate you are paying for those loans.




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