If I pay my truck off will that boost my credit score more or effect my home loan approval?

Hi TimWhen you have less than 10 payments left on an auto loan, it does not count against you. They will not calculate it in your debt ratios.Kamyar RezaieWembley's Financial818.822.8044

Hey Tim...There's a lot of information missing, but based on your question, there is little to gain by raising your credit score above the 669. FHA/VA/USDA and conventional financing require a 620 or higher credit score (in most cases with most lenders). Your credit score is sufficient right now to purchase a home.. if you do increase your score, the interest rate won't be that much lower... and actually, by waiting for your score to improve before purchasing your home could actually cost you money.. if rates go up suddenly (today was not a good day for interest rates), then any potential improvement you might make by a better credit score will be offset by the higher interest rates and higher home values... My advice is to go and purchase your home now... contact a local mortgage broker, not a bank, and apply with them.. They have access to numerous lenders and can find you the lowest rates and fees... WilliamAcres.com

If you pay off your truck yuo will see a slight increase in your credt score. However since 30% percent of your score is revolving debt, you might want to look at paying a credit card down to less than 30% of the credit limit. This will typically give you the greatest boost in your score. I would also recommend writing the credit agencies and obtaining copies of your credit report. It is always a good idea to review for errors. Good luck

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Hi Tim,Removing the truck payment from your debt/income ratio will also increase the amount for which you are approved.Steve VerrierCommunity Mortgage Solutionswww.thefloridamortgagecenter.com

DO NOT, DO NOT, DO NOT pay off your auto loan. Once an account is closed, it will no longer help improve your score. It's almost the same as if it was never there. You can pay the balance down to around 9-10 times the payment and the payment no longer is factored into your debt servicing, but you are still getting positive points to help your score. The other thing to consider is keeping your credit card balance at or below 15-20% of the limit. This will maximize the points you get there. If you are looking at an FHA loan which only requires a 3.5% down payment, then your score is plenty good where it is. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

This is a catch 22 regarding the truck payment because it is probably your best history on your credit report but if you no longer have the payment then you have more buying power. I would pay any revolving debt down to 30% of the credit limit before I touched the truck. Also, 53rd probably has tighter debt to income ratios than what you will find with a mortgage broker. I would contact a mortgage broker that can point you in the right direction.I only lend in Florida!