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rberk003

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If I pay my car loan and half my credit card off next year will my credit score increase a lot?
my car loan is 5000 and my credit card is 6000

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A car loan is an installment plan loan and is a good loan to have. Credit history that shows good payments on installment loans have higher scores.It is up to you to decide if paying the interest rate si something you want to do to have the slightly better credit score and the 5000 extra rainy day moneys in the bank vs savin g the itnerest rate. in part it would matter what your debt to income ratio is and weather you need the credit for something else like a home purchase.

Credit card bet is unecured "bad" debt. It is also probably at a much higher rate. I would pay it off but only if you have money to pay both the secured debt (teh car) and not just the unsecured debt (the credit card). If you choose to keep the car loan, i would put the 5000 in a separate savings account so you are not tempted to spend it...

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