2007-01-25 01:02:01 · 16 answers · asked by Virtuosic 1 in Business & Finance ➔ Credit
Paying off the account with the highest interest rate is the most obvious answer. However some other conciderations: paying of the CC card instead of the car loan will do the most to increase your credit score. CC cards are 'revolving' unsecured lines of credit. Having a high balance will negatively affect your credit score especially if your current balance is greater that 33% of you credit limit. Car loans are secure 'installment' loans that have a fixed payment for a fixed time frame. These types of loans positively affect your credit score. Plus, CC cards usually have front-end interest: so the minimum payment usual goes only to interest not paying down the principle.
Unless the Car loan is significantly higher that the CC, you should pay off the CC card. Plus, paying off the CC will open up available credit in case of emergency.
2007-01-25 04:15:48 · answer #1 · answered by Tom 1 · 1⤊ 0⤋
The credit card....defintely.
The auto loan is an installment loan and scores are not affected paying off even a year in advance.
However, credit cards are a revolving debt and balance - limit ratios directly affect the scores. The best credit will have balances of less than 20% of the credit limit.
Here is some additional info. Hope this helps.
2007-01-25 04:52:42 · answer #2 · answered by loanman46 2 · 0⤊ 0⤋
Credit card. Your credit card probably has a higher interes rate and they are different types of credit. Having an outstanding balance on an auto loan is better than having an outstanding balance on a credit card, credit report-wise, because your auto loan is secured debt.
2007-01-25 03:15:05 · answer #3 · answered by oj 5 · 0⤊ 0⤋
I would pay off the car loan. Then I would do a balance transfer on the credit card to a 0% APR credit card. That way you can offset paying it off, but pay no interest for 12 months. Then you'd pay zero interest and just have the credit card to pay off in the next 12 months at your leisure, with no rush or finance charges.
Learn more at http://www.thetruthaboutcreditcards.com
2007-01-25 04:18:05 · answer #4 · answered by Todd S 3 · 0⤊ 0⤋
I would say your credit Card, since you might put up more and remain in debth, also the inrest could change, and in general its not healthy to have a balance on your credit, on the other hand the car loan is a fixed rate usually, and its just a payment that you have to put into schedule, so between those two I would defenittly recomend get off the credit card first
2007-01-25 01:08:20 · answer #5 · answered by Anonymous · 0⤊ 1⤋
Definitely the credit card. Auto loan balance is usually not seen as a negative factor in your credit report, but, credit card balance is.
2007-01-25 01:17:05 · answer #6 · answered by spot 5 · 0⤊ 0⤋
you ought to pay off the credit card debt- you would be paying extra contained in the long-term on the credit card then with the motor vehicle loan~ to improve your credit pay off the credit card~ and make the money on the motor vehicle~ constantly shop the credit card debt DOWN- IE- once you're making purchases make particular that throughout a million-2 statements you've gotten the cardboard paid off- something larger than 50% of the shrink reasons purple flags to credit businesses- I even have been by way of credit dealing with classes and it is WHAT they under pressure~ good success
2016-09-27 23:26:02 · answer #7 · answered by ? 4 · 0⤊ 0⤋
pay off your auto loan first but keep paying your credit cards, you need your car more then your cards. besides you will be able to choose a cheaper insurance and make your once car payments towards your credit debt.
2007-01-25 01:13:21 · answer #8 · answered by Anonymous · 0⤊ 0⤋
I would pay off the car and then use the freed up money from not having a car payment to work off the credit card debt.
2007-01-25 01:10:44 · answer #9 · answered by Anonymous · 0⤊ 0⤋
The balances are equal but which has the higher interest rate? Pay that one off first.
2007-01-25 01:06:53 · answer #10 · answered by Nasubi 7 · 0⤊ 0⤋