OK, here's the set-up. I have approximately 4200 in revolving debt and 2800 left on a 5 year lease that is up in 4/03. I'm going to be applyingfor a mortgage in 3-6 months. I've heard that mortgage lenders do not take into account loans that will be satisfied in 10 months or less. In this case, my lease will qualify if that is true. I have 2500 dollars available to me in cash. Wouold it help my score and my chance to get a mortgage if I apply this 2500 to the lease and pay it off, thus, I won't have the 275.00 monthly payment or should I apply it toward my credit card debt and bring my ratios down to 45-50%? My scores are in the low 600 due to two medical collections that will be paid this week with written agreement for complate deletion. Thanks for any advice that you wonderful people can forward my way!!!
Do yo think that would really help out the score? I think that's what I'm going to do, I just wanted to get your opinions because the monthly on the lease is high compared to the monthly on the CC's. I hope the lender just doesn't include the lease payments since I'll only have around 6 months left on the lease.
kozman, Do what puts money in your pocket. How long will it take to pay of those cards just making monthly minimums? You reduce that revoving credit by over 50% and get those collections deleted, your score should climb.
You also have to show lenders that you have enough cash on hand to cover closing costs, the down payment and some sort of emergency fund. Don't throw all of your available cash into paying down your debt if you cannot do these things.
I'm dealing with the builder and the closing costs are covered in the loan. 0 down on the house. I might use my VA benefits. I just want to get my scores up. I hoping that at 625, I can get it up to the high 600's with getting my two collections removed and paying down my debt.
I found that paying down $11,000 of auto loan debt got me zero points. For every 1% of my total credit card debt I pay, I get one point. My advice is to pay down the credit card debt if you want to get points.
Thanks for the info. I'm going to do that. I'm taking the 2500 and dividing by three and paying it over three months to show a better payment history.
Definately pay down the credit cards. For some reason, they don't like to see a lot of balances on cc's. When I paid down 30% of my credit cards, I got a pretty decent jump in score. Would be more if I could pay down another 30%, which I hope to do soon. L
Thanks! I'm currently showing that I have 23% available credit. I'm hoping that in a few months to have that to 60-70% available.
Hey, it's all the same and I understood what you said, that's all that matters, right? I really do hope my scores go up. I'm actually excited about sending this money out!!
credit scoring = pain dealing with it = sore Makes Perfect sense to me Sometimes a cigar, etc.........
