Which card should I pay?

[anasara]

I'm trying to decide which card to put $800 to next month thanks to an extra pay period (woot!).

Card #1 is a closed acct with an outstanding balance of $800 that I've been paying down for about a year. So I'd be done paying it off with this payment.

Card #2 is an open acct in good standing which has a balance of about $1500 (failed IVF meds; so pissed). I'd planned on paying it down @ the rate of $300/mo based on my spreadsheet even without the extra $800 but this would mean it disappears faster.

Or should I go halfsies on them ($400/$400)?

DH & I are hoping to buy a house @ the end of the year so I'm trying to figure out what's going to help our credit score the most (mine was 721 when we bought a car last year).

Thanks!

[SJ]

Do you know the interest rates on the cards?

[Susie]

I would decide based on interest rate - put the whole $800 toward the card with the higher rate.

If the rates were equal, I'd pay off the $800 balance.

[anasara]

Jul 6, 2012 11:08:58 GMT -5 SJ said:

Do you know the interest rates on the cards?

Same rate. Sorry!

[Deleted]

Since they have the same rates I'd pay off the $800 balance and have one less payment every month. Plus, it feels good to pay things off completely!

[SJ]

I would definitely pay off the $800 one and be done with it!

[y4m]

All other things being equal, I think putting the whole $800 on your credit card would be best as far as your credit score, because it helps both your debt:credit ratio and your debt:income ratio. Paying off the car helps debt:income, but doesn't impact debt:credit (because only revolving accounts like credit cards are included).

ETA: wait nevermind, I thought the $800 was a car loan, not a card. Nevermind, pay the $800 then--they are identical in terms of credit score, but you get one less bill that way.

[whitepicketfence]

Jul 6, 2012 11:09:38 GMT -5 Susie said:

I would decide based on interest rate - put the whole $800 toward the card with the higher rate.

If the rates were equal, I'd pay off the $800 balance.

I would do this as well.

[mollz007]

Card #1. It would feel so good to get that balance out of the way so you can focus on other payments!

[KaraOrNot]

I would pay off #1 and be done w/ it.

[dexteroni]

Definitely pay off the $800 card, no question. Then however much you had been paying on that card each month, add it to the $1500 card payment to get it paid off faster.