Paying down installment ln. vs Credit Card

QuestionsPaying down installment ln. vs Credit Card
asked 4 years ago

I had posted this on a different forum – but i have moved it here as it may be more relevant.

In the hopes of buying a home I am working with a loan officer who has adviced me to pay off an installment loan and credit card that I have to a 30% balance. Does paying down the installment loan make a real difference in credit score seeing that it isn’t a revolving credit? The balance on the loan is 4K and the credit card is maxed out at 8k. I intend to pay 5600 on the credit card and about 2800 on installment loan. However I keep wondering if I should put the 2800 on the credit card to pay the credit card down some more and to get to a better score. My scores are Tu636, Eq596, Exp560 ( mortgage scores) I would like to get to 640. I have no other debt except a 2k student loan. I have two paid collections on Experian and Equifax (the one on equifax is a pay for delete and I am just waiting for credit to update end of month). Any advice will be appreciated.


 

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