Credit Cards or Auto Loan

Anonymous · ‎02-12-2009

I am in the process of paying some things off. I have an Auto Loan - I have only 10 or 11 months. I have many credit cards that have high balances. What should I focus on paying off to increase my credit score?

Any advice would be appreciated.

oracles · ‎02-12-2009

credit card uitl% counts 30% of your overall credit score therefore paying down your credit card balances will give you the quickest jump in score.

there is minimum effect in paying off your auto loan and you may experience a ding in your score because you no longer have an auto loan.

Pay down your credit cards and you will see an increase in score.

Hope this helps

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Anonymous · ‎02-12-2009

Thanks for the reply

I will focus on my credits cards first and then the car loan.

oracles · ‎02-12-2009

Very good and keep us updated on how many point you increase in score.

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Anonymous · ‎02-13-2009

Ok, I will -- Before I forget my scores are 682 Trans - 653 Equ -- 663 Exp

Anonymous · ‎02-15-2009

I have another question, I have three credit cards that carry a balance but they are closed accounts. Do these accounts count towards my credit card uitl%, or just my open credit cards go towards my credit card uitl%?

Anonymous · ‎02-15-2009

@Anonymous wrote:
I have another question, I have three credit cards that carry a balance but they are closed accounts. Do these accounts count towards my credit card uitl%, or just my open credit cards go towards my credit card uitl%?

They count against your util. All the balances count fully, although the cards don't contribute to your overall CL.

Anonymous · ‎02-16-2009

Ok, Thanks

Junejer · ‎02-17-2009

Concentrate on the closed ones first. They are killing your score.

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RobertEG · ‎02-17-2009

Yup. Closed accounts with a balance have no CL and all balance owed still count into revolving util, which is the most highly scored in FICO.

Forget paying off the installment loan, and concentrate on the unpaid revolv accounts. This is expecially critical because you dont want them to go into CO, and then into CA, by the OC, which will raise a whole new dimension of scoring woes for you. Clear them doggies off the prairie!