Also, it is better or easier to get a home loan first then an auto loan … and this could be directly related to credit scores … or not? But, life of course can't always play out like that. Because it's a relatively new car loan … wait until the car is almost paid off … (less than 6-9 months) with on time payments of course to apply for a home loan. Presuming you aren't in a rush and how long the car loan is for. Otherwise, pay more than the minimum payment every month; even if only an extra $5 or $10 dollars. The same with any credit card(s) you may have. Do this for a solid year before buying the home and watch how those scores improve. Do not pay off the credit cards in full unless a bank ask you to "qualify" for a certain loan amount. This is based on debt credit ratio … and not necessarily to improve the score. It may in fact lower your score to pay off in full. Thus, let the banking or loan institution 'see' the highest score first … and they will at times advice some customers to pay off a credit card to help get approved. But, that's more related to expected future monthly payments. That is rare … so don't be worried. Better to save the money to pay off a credit card or two and enough for down payment and closing costs … and see what different institutions suggest. (I wouldn't offer to pay them off up front either … only if you don't like their deal or interest rate offered.)
