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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 2272
Experience:  Certified Public Accountant
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Not tax question credit question, if I pay off two auto

Customer Question

not tax question credit question
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: if I pay off two auto loans would it help my score or should I pay off some small credit card and leave them open
JA: Is there anything else the Accountant should be aware of?
Customer: no
Submitted: 11 months ago.
Category: Finance
Customer: replied 11 months ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Mark Taylor replied 11 months ago.

Hi, my name is Mark. I will be happy to help you with your questions. Let me get a little more information from you. How long have you had the auto loans?

Customer: replied 11 months ago.
2008 2010 two differnt
Customer: replied 11 months ago.
2008 and 2010
Expert:  Mark Taylor replied 11 months ago.

From a debt ratio standpoint it would help to pay off the car loans. You had time to develop a payment history on the loans. Another factor that determines your credit score is how you are using credit. So if your credit card accounts are near there limits it is considered a negative.

Customer: replied 11 months ago.
ihave abuot four small credit cards 1000.00 balance 950.00
Expert:  Mark Taylor replied 11 months ago.

If you pay off the car loans it will probably free up some cash flow to pay towards the small credit cards.

Customer: replied 11 months ago.
what would increase score credit cards or auto loans I need score up about 25 points
Expert:  Mark Taylor replied 11 months ago.

Credit utilization is 30% of your score. So paying the small balances probably would have a larger impact.

Expert:  Mark Taylor replied 11 months ago.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.

Customer: replied 11 months ago.
both payments come to about 980.00 a month credit card come to about 175.00
Expert:  Mark Taylor replied 11 months ago.

Do you have money to do both? Perhaps pay one of the car loans and apply the remaining money to the credit cards?

Expert:  Mark Taylor replied 11 months ago.

Of course, from a cash flow perspective you are better off paying the loans off freeing up the $980 a month.