Pay off or make payments?

Date: Thu, 05/14/2009 - 11:03

Submitted by chardanam
on Thu, 05/14/2009 - 11:03

Posts: 5 Credits: [Donate]

Total Replies: 2

We have a Visa (24%) and a LOC(7.5%). There is enough credit on our LOC to pay off the VISA, but should we continue to make ontime pmts on both to raise our score, or pay off the VISA to raise our available credit/credit in use ratio?

I would pay off the Visa. If that gets you below 35% utilizatio

I would pay off the Visa. If that gets you below 35% utilization, that will dramatically improve your FICO score, plus the savings on interest will make a big difference in your budget.

lrhall41

Submitted by NASCAR_Devil on Thu, 05/14/2009 - 11:17

( Posts: 4671 | Credits: )

Thanks for the input. I'm still not sure...let me give you more

Thanks for the input. I'm still not sure...let me give you more info.Before we got married, my husband went on a bachelor rampage and despite his very high income had almost everything teetering on repo, foreclosure, unpaid taxes, etc. I threw money at it and stopped all that, but the FICO is in ruins(660). We've been paying off debts for a year now and are down to these last two, besdes our mortgage, RV loan and car loan. OUr debt to income is 27%. A year ago when I wanted to pay off the VISA, the bank advised us that to make payments would help our score more than to pay this stuff off in a lump sum. We are paying about 500% of the min pmt each month on both. Our last late payment on anything was 10 months ago. I'm concerned that paying the VISA(which was closed by biller)will leave us with only the one revolving account to show history with. What should I do???? Sincerely,Clawing Our Way Out

lrhall41

Submitted by chardanam on Thu, 05/14/2009 - 11:31

( Posts: 5 | Credits: )