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Question By
melissaaxm

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2 debt balances left - which to pay first? Buying a house, need to improve my credit score!
I have 2 debt balances left: 1 with PayPal Credit and 1 signature loan with my local credit union.

My PayPal Credit has a $3000 balance due with 19% interest, HOWEVER PayPal Credit does NOT report to the credit bureau, if I paid this off first, I could have it paid off by the end of February (I'm getting a decent tax return and a bonus from work)

My loan with my credit union has a $4500 balane due with 6% interst rate. I could pay this one down to about $900 by the end of February and all this WOULD report to the credit bureau which would increase by credit score.

Once March begins my boyfriend and I are going to save until July to buy a house, so all of my savings would go towards our deposit. My thought would be to increase my PayPal credit to $900 to pay the remaining balance with my credit union (because paying off a loan boost your credit a lot, doesn't it?) and since PayPal doesn't report, I'll just continue chipping away at it monthly and once we have our home, I'll pay it off by dropping as much possible to have it paid off by the end of the year.

Is this a good idea? Does anyone have any other suggestions? Should I do something differently? Should I not increase my PayPal balance and just pay off that $900?

Please HELP!

Thank you!

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A payed off loan will lower your credit score. A payed down loan will improve it.

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