Can someone please answer a question for me? I am in the process of refinancing my mortgage...should close in about 1 or 2 weeks. I took enough funds to pay off my second mortgage, a personal loan and Providian and an auto loan. The only thing I will have left is the new first mortgage, one auto loan and 2 credit cards with low monthly payments of about $15.00 each (if that). And of course the normal monthly bills like utilities and insurances. How will doing this affect my score? Will it increase it alot or just a little? Does anybody know what I can expect once this transaction goes through? I'm taking another posters suggestion and leaving a $5.00 balance on Providian....I'd like to close this account once it is paid, but that was discourged by someone here...... Suggestions please.
I think the mix you've described will improve your score. There's a good balance of installment bank loans and revolving credit. It may take a while for the full effect, though, since establishing the a good payment record on your new mortgage will be important.
My mortgage pymts are never late.....that is one thing I make sure of. I have a separate savings account that my child support goes into and the mortgage payment is taken from there automatically on the due date.
