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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7129
Location: bloomfield, ct
18.93 Dollars($)
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please recognize, everyone, that the above poster's recommendation pertains only to properties in the state of texas. i'm sure there may be other helpful information on the site, as well, but it's directed at texas.
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George M. Akerley
Loan Consultant
860-221-5044 |
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eric1
Community Experts
Joined: 04 Jan 2009
Posts: 1130
169.13 Dollars($)
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wil
Guest
0.10 Dollars($)
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| It is wise to take a personal loan for $5000 to pay off credit card debt, six months prior to applying for a mortgage loan ? |
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savior70
Joined: 25 Mar 2009
Posts: 1338
Location: Florida
152.59 Dollars($)
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Hi
You can take a personal loan to pay off your credit card debts. Since the amount of the loan is just $5000, it's not going to affect your debt ratio to a great extent. So, it'll not be a problem for you to apply for a mortgage six months later. What is the actual amount of your credit card debt? Is it worth just $5000? If it's so, you can negotiate with your credit card company to settle the debt or can work out a repayment plan and pay off the debt over the next few months. |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7129
Location: bloomfield, ct
18.93 Dollars($)
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i think i would have to agree with savior here. paying off your credit card debt is always a good idea, and if this is your preferred method, it would work. giving yourself 6 months would also not cause damage to your credit scores. i suggest you not necessarily close out your credit card accuonts - at least not all of them - but that you keep the lines open and simply avoid usage.
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George M. Akerley
Loan Consultant
860-221-5044 |
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warghader
Joined: 19 Jun 2009
Posts: 16
5.87 Dollars($)
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| will this work if one just keep the lines open for credit and do not use it at all,whether it will improve the score and if by how much points??? |
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jenkin7
Joined: 04 Jun 2007
Posts: 3317
Location: Hawaii
492.11 Dollars($)
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Hi warghader,
Just keeping the credit lines open will not be useful. You need to use them. What you can do is you can use your credit lines to make payments for the utility and other bills and then, pay off the debts. This will keep the lines open and active and help you improve your credit. |
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sunnyca2009
Joined: 04 Aug 2009
Posts: 1737
36.13 Dollars($)
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closing yoru accoutn will have negative impact on yoru debt to incoem ratio
It will show that you have less availabe credit and more utialization |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7129
Location: bloomfield, ct
18.93 Dollars($)
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retaining the account with an open credit limit and zero balance will be highly favorable for credit scoring.
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
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