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Loan #’s 2 & 4 are the highest interest @ 6.8%. Loan 4 is the smallest balance. 6 & 7 are 2nd highest @ 4.66%. 1 & 3 are 4.5%. #5 is 3.86%, but the largest balance.
@macinjosh wrote:Loan #’s 2 & 4 are the highest interest @ 6.8%. Loan 4 is the smallest balance. 6 & 7 are 2nd highest @ 4.66%. 1 & 3 are 4.5%. #5 is 3.86%, but the largest balance.
Ultimately it doesn't matter what the balance is when we're talking debt: just the interest rate
Pay off them in the order you have listed, 2, 4, 6, 7, 1, 3, 5 if you're trying to get out of debt the fastest and therefore save the most money possible. I'd argue dumping 2 and 4 are the best financial moves just about anyone could make right now, guarunteed 6.8% in today's market? Take it .
Great advice thus far. The only tweak I'd make is not to lower your balance to an ultratiny level ($2 was suggested). We have had a number of people have their loans closed when they do that. Many loan servicers have an unstated policy of doing that -- I had a very helpful customer service rep who walked me through that when I was planning to pay down my student loan.
What I would do is look at what the original monthly payment (OMP) was on your loan. Then lower the balance to $2 more than that OMP. And if the OMP was really small (e.g. $11) then make sure that the balance stays above $30.
On a different note, if for some reason you only want your scores to go up (never down) then yes, I'd pay all loans to 8% first before paying any of them off. Your scores will get to the same place regardless with a single open loan at a low balance, but some people don't like seeing their scores go down temporarily.