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Strategy

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Regular Contributor

Strategy

Ok so based on advice I have my plan in place and just paid two CO cc and 2 CO student loans which will boost our scores with utilization. I did that to put time between now and our mtg application next year with the CO no longer reporting

Remaining cc will be paid off in June

Nthen paying off some private loans and a CO student loan so this was my plan on what will retail come February 2020

I guess my question is o. Wife’s side and if it will hurt to pay off the auto loan to free up income earlier. I was hesitant to do so based on need for diverse accounts.

Here is what our loan app will look like

Wife
Store card $20 bal/300 limit. <8.9%
Student loan $2200 under 8.9%
Car loan $2350 under 8.9%

Me
Cc 1600 limit 0.
Cc 5000 limit. 25 bal. u set 8.9%
Student 1 40,881 bal. 38671. 94%
Student 2. 42,053 bal. 38671. 91%
Student 3. $2300. Bal 150. 6.5% utilization
Car $2350 under 8.9%

Question. If I pay off the car early this year to free up $360 per month, will it kill my wife’s score with her only having one student loan as the “installment”

Any other thoughts.
Starting Score: 652/644/654 (March 7) and spouse 649/647/602
Current Score: 725/726/719 (Jan 7 and my spouse is 731/715/721 (Jan 7)
Goal Score: 720


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Message 1 of 4
3 REPLIES 3
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Super Contributor

Re: Strategy

As long as there's 1 installment loan reporting a low % balance for both of you. The other 2 really dont do much for scores. But does help with payment history.

Message 2 of 4
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Legendary Contributor

Re: Strategy

I agree that credit mix will not be significantly effected by paying one of multiple installment loans.

Additionally, installment loans are not included in % util of revolving, and current loan balance is not a major scoring consideration.

 

More significant is the the payment history scoring of the prior COs.

Paying permits the scoring of the derogs to age in impact, but does not remove them.

Did you attempt a pay for deletion when you paid those delinquent debts?  

You might wish to pursue good-will attempts to get those major payment history derogs removed.  That would be significant.....

Message 3 of 4
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Regular Contributor

Re: Strategy

Thanks

Yes pay to delete denied by both cc with capital one and other co with Wells Fargo
Starting Score: 652/644/654 (March 7) and spouse 649/647/602
Current Score: 725/726/719 (Jan 7 and my spouse is 731/715/721 (Jan 7)
Goal Score: 720


Take the myFICO Fitness Challenge
Message 4 of 4
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