Credit card vs mortgage?
My husband and I were approved for a 300K mortgage loan. We are in the process of making an present on a home. Since we have a 35K credit limit that is to say almost maxed out here is my question.....Is it better to close out the account and verbs to make the credit card payments or should we continue to hold the account open making payments? Would it fix our credit score if we closed the account?
Answers:
no don't close the account.
just try to restrain yourself from using it.
if you close it will bring down your credit score.
so keep it widen and make payments.
and as my cousins would say don't bring it if you don't want to use it maintain it somewhere safe but don't bring it with you or use it on-line any.
good luck,Hope everything works out for you.
I disagree with the cdrates, and your intuition is correct. You do not need to be more within debt. Continue paying off the cards using the snowball method and you will become debt free and will be able to live approaching no one else in your lovely home of 300K. Having a home is more expensive than merely the mortgage. You can have an underwriter loan which means that the wall will look at whole person and finances instead of a ranking. Having a high FICO score is have an I love debt score.
Snowball method: list your debt including the cars surrounded by order of smallest to largest and pay the minimum on every card except the first one attack that one next to a vengance and use that same money to payoff the second card including the minimum. Continue doing that with all debt. Source(s): I did it for 2 1/2 years on $65,000 of debt and I it works! I am debt free presently and living it up. You only have to stop future on things you don't need.
Longevity of your credit history also counts towards your credit score, so don't close any accounts, you should read this article on maintaining your credit, the article list several tips on how to do so, http://www.monitorbankrates.com/how-to-b…
Nooooooooooooo do NOT close the article!
You want to keep the card history especially at a time like this. If you no longer want to be capable of use the account (charge stuff) just cut up your cards and hold making payments as much and as soon as you can.
Closing the account will definetly drop your score(s).
Now that you've been approved for the mortgage do NOT charge anything or apply for any other credit or loans...or they may recind on the extend.....the loan is not yours until the possession date when funds are dispursed. A lot of people mistakenly thing approved mode final.
It depends on a few things. How much you make, and how soon you can the credit card rotten?
I hate how people are so concerned nearly their score, it is an I love debt score. Once you go and get rid of debt your credit score will decline but that DOES NOT exclude you from getting loans in the adjectives. You can still obtain a loan without a credit win, lenders will have to actually do their work and at your bills (utility, mortgage, etc) to see if you compensate on time. The interest that you pay on debt can be put into a fund for emergency so when something occurs you'll have the money to cover it.
Don't close. Just take credit and discharge it in time, and your credit score will going up. To avoid adjectives mistakes while buiding credit, I recommend this one - http://freecreditreport.deep-ice.com - to monitor changes in you evaluation and pre-estimate future scores for different scenario of payments.
Absolutely do NOT close any credit card accounts if you are about to apply for a mortgage. It is also never a perfect idea to close an account that have an outstanding balance. You lose all leverage next to the credit card company since you are no longer a customer.
A big part of your credit score is base on the ratio of credit card debt to available limit. Carrying balances of more than 30% hurts your chalk up. Closing a credit card account closes the available limit, thus increasing the debt percentage.
Best mode to boost your credit score, would be to pay past its sell-by date that credit card bill.
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Answers:
no don't close the account.
just try to restrain yourself from using it.
if you close it will bring down your credit score.
so keep it widen and make payments.
and as my cousins would say don't bring it if you don't want to use it maintain it somewhere safe but don't bring it with you or use it on-line any.
good luck,Hope everything works out for you.
I disagree with the cdrates, and your intuition is correct. You do not need to be more within debt. Continue paying off the cards using the snowball method and you will become debt free and will be able to live approaching no one else in your lovely home of 300K. Having a home is more expensive than merely the mortgage. You can have an underwriter loan which means that the wall will look at whole person and finances instead of a ranking. Having a high FICO score is have an I love debt score.
Snowball method: list your debt including the cars surrounded by order of smallest to largest and pay the minimum on every card except the first one attack that one next to a vengance and use that same money to payoff the second card including the minimum. Continue doing that with all debt. Source(s): I did it for 2 1/2 years on $65,000 of debt and I it works! I am debt free presently and living it up. You only have to stop future on things you don't need.
Longevity of your credit history also counts towards your credit score, so don't close any accounts, you should read this article on maintaining your credit, the article list several tips on how to do so, http://www.monitorbankrates.com/how-to-b…
Nooooooooooooo do NOT close the article!
You want to keep the card history especially at a time like this. If you no longer want to be capable of use the account (charge stuff) just cut up your cards and hold making payments as much and as soon as you can.
Closing the account will definetly drop your score(s).
Now that you've been approved for the mortgage do NOT charge anything or apply for any other credit or loans...or they may recind on the extend.....the loan is not yours until the possession date when funds are dispursed. A lot of people mistakenly thing approved mode final.
It depends on a few things. How much you make, and how soon you can the credit card rotten?
I hate how people are so concerned nearly their score, it is an I love debt score. Once you go and get rid of debt your credit score will decline but that DOES NOT exclude you from getting loans in the adjectives. You can still obtain a loan without a credit win, lenders will have to actually do their work and at your bills (utility, mortgage, etc) to see if you compensate on time. The interest that you pay on debt can be put into a fund for emergency so when something occurs you'll have the money to cover it.
Don't close. Just take credit and discharge it in time, and your credit score will going up. To avoid adjectives mistakes while buiding credit, I recommend this one - http://freecreditreport.deep-ice.com - to monitor changes in you evaluation and pre-estimate future scores for different scenario of payments.
Absolutely do NOT close any credit card accounts if you are about to apply for a mortgage. It is also never a perfect idea to close an account that have an outstanding balance. You lose all leverage next to the credit card company since you are no longer a customer.
A big part of your credit score is base on the ratio of credit card debt to available limit. Carrying balances of more than 30% hurts your chalk up. Closing a credit card account closes the available limit, thus increasing the debt percentage.
Best mode to boost your credit score, would be to pay past its sell-by date that credit card bill.
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