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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4434
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I have four credit cars, the one with the highest balance has

Customer Question

I have four credit cars, the one with the highest balance has a 22.9% interest and I have used 87% of the credit limit; the second highest with 22.9% interest is at 67% of the limit; the third is at 25% interest and 45% limit; and the 4th is an AmEx with no limit and a 15.25% interest. I need to buy a used car and feel I can afford something under $11,000. With cash on hand and my tax return, I can pay off 2 of the 3 highest balances with enough left over for a 10% to 15% down payment. Or, I can pay 2 of the 3 highest balances and the AmEx but have to do 100% financing on the car. My current Trans Union credit score is 684, another of the agencies give me a 712. What do you feel would be the best approach to paying down debt, increasing my credit score and financing the used car?
Submitted: 5 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 5 years ago.

Dear Friend,

 

You have good score and can certainly be called above average. In my opinion, the best approach would be to payoff 2 or 3 highest balances and then go for 10-15% of down payment. With this score, you can have finance at much competitive rate. Putting some equity in used car will also better your score.

 

I hope this helps..

Regards,

Rakhi Vasavada and 3 other Finance Specialists are ready to help you
Customer: replied 5 years ago.
Would it be best to pay off the 2 cards with the highest percentage of used credit limit?
Customer: replied 5 years ago.
Or the 2 with the highest balance?
Expert:  Rakhi Vasavada replied 5 years ago.

Dear Friend,

 

IT is advisable to pay off the cards with highest % as it will save the interest outgo in the long term..

 

Warm Regards,

Customer: replied 5 years ago.

Thank you for all your help.

 

Be Well,

Adrian Winters

Expert:  Rakhi Vasavada replied 5 years ago.

Dear Friend,

 

You are welcome.. Hope to assist you in future too..

Warm Regards,