Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
jazy76

0 Contributions
0 People Helped
Which action has a larger effect on my score, paying off an auto loan or a credit card?
I have 2 credit cards and 1 auto loan. I am selling a piece of property which will allow me to pay off 2 of the 3 balances, one of which is obviously a credit card. So my question is whether to pay off the second credit card or the auto loan to get the maximum benefit to my credit score. My desire to increase my credit score as much as possible is because I am looking to buy a house and want the best score possible so I can get the best rate possible.

Thanks

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
35 Contributions
80 People Helped

paying off your auto loan may help/hurt your score or it may stay the same. If it's some crazy APR/interest it may make sense to pay off your auto loan but without knowing the terms of the loan it's hard to say. 

paying off your credit cards will not hurt it your score. Credit to debt ratio is important component of your fico score, what your mortgage lender will use to determine your interest rate. If you are maxed out and paying a lot of interest, you will want to lower your balances. 

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.