gravelgirl66 Posted March 1, 2007 Report Share Posted March 1, 2007 Okay... for those of you following my house dilemma... well i had some surprising news today. Apparently at my work, we met all of our company objectives for the year, soo..... we are getting a 1K bonus. next week. I can see it would be best to wait till I am two full years out of my BK, which will be in July, to get the best mortgage.... but... I went on a trip last week, (friend payed plane ticket) but i did put some dough on my credit cards. (2).All my cards have zero balance but two... (1) has about 150 dollars, out of 700.00 limit(2) has about 750.00 out of a 1000.00 limit. Should i take this money and pay off these cards? Or should I put it in savings, towards my down payment, eventually, adding to it?I could add to that, but then my (2) cards aren't going to get paid down too much... if i keep putting towards that money... Would it be better to pay them off, and then try to save for a downpayemnt or save it, and pay what I can towards the balances of those cards?thanks in advance for your hlep... Link to comment Share on other sites More sharing options...
kevin3344 Posted March 1, 2007 Report Share Posted March 1, 2007 (edited) I would probably pay down my credit cards, especially any that are over 50% balance to credit limit ratio. Unless you have a 0% credit card, you will probably do better interest wise by paying off the cc vs. putting the money in a savings account. More importantly, revolving credit is highly weighted in FICO scoring and the lower balance the better. It should really help your score.________Live Sex Edited September 9, 2011 by kevin3344 Link to comment Share on other sites More sharing options...
sr28b Posted March 1, 2007 Report Share Posted March 1, 2007 I would probably pay down my credit cards, especially any that are over 50% balance to credit limit ratio. Unless you have a 0% credit card, you will probably do better interest wise by paying off the cc vs. putting the money in a savings account. More importantly, revolving credit is highly weighted in FICO scoring and the lower balance the better. It should really help your score.I second that. Link to comment Share on other sites More sharing options...
jq26 Posted March 1, 2007 Report Share Posted March 1, 2007 Would it be better to pay them off, and then try to save for a downpayemnt or save it, and pay what I can towards the balances of those cards?It is much better financially to pay the cards off before the due date. That interest is much higher than any savings rate you will receive on your money so, strictly from a financial aspect, you'll be better off paying off the cards to avoid the interest fees. However, the x factor here is that putting that money into a money market account may be a benefit to you emotionally. It will cost you a few dollars in interest by carrying balances, but may spark you to feel like you have a solid foundation to start saving even more while you are also making monthly payments on your cards. If you don't see this being the case, then just pay off the cards. Link to comment Share on other sites More sharing options...
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