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Posted in Auto Loans
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raiderfan22

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Is having two Auto loans hurting my credit score?
Is having two Auto loans bringing down my credit score? Both loans total right $22480. I am trying to increase my score as i want to buy a house in the near future. Please share your thoughts.

Thank you in advance for your time.

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What is your credit utilization

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Divide the amount owed on all your cards/ total limoit on the credit cards = utlization.  You want this between 1 and 10% and have a balance only on one credit card.  That should make biggest impact on your score besides payment history (no lates).

Edmunds.com has affordability and reliability calculators, use them.

I would not recommend paying down the highest interest rate first.  I would pay down the lowest balance first.  I would then work on the next lowest balance.  By paying off cards, you free yourself to put more payment money on the next card to pay down.  Nothing feels better than having a 0 balance card.  Also if you pay down the lowest, you may get luck and get a balance transfer offer so you can transfer some money from the other card back to the 0 card to continue paying.  Your credit score will be better as you get your cards to the goal of  (1 card carrying a balance and between 1 and 10% total utilization).  Once you are there, then buy a car you can afford.

my 2 cents.

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