My husband and I are trying to financially prepare to buy a home in the next year or so. Our credit scores are currently in the mid 700's. We both have credit cards and a shared personal loan on our reports. The car is only on mine.The cards are paid off to 10% utilization.
We have an emergency fund that would cover 4 months of expenses.
We are wanting to pay off the unsecured personal loan (credit union, 12% APR, has $950 left, no prepay penalties). However, I've seen articles warning about paying off loans early as they diversify the credit report.
If paid off, my husband would only have cards on his report. Our credit was in the mid 600's before we paid off the cards recently and we were declined to refinance the car and add him to it a few months ago.
Basically, is it worth paying the monthly payments to keep the diversification? Or should we just pay it off?
Any tips are appreciated.
Submitted November 09, 2020 at 07:37PM by MaddBunnyLady https://ift.tt/3pdJaOX
