Should I pay off all my credit cards?

[BuffaloBoy]

I'm currently a 608 mortgage score.

I have $22K in credit card limits. And have used $20K of that $22K.

I also have several 30 day lates and 1 60 day late.

Would paying the entire $20K of the $22K help me???

[Anonymous]

Simply... Yes. If you get to where you have 1card reporting a small balance (1-9% of that cards imit) and the rest showing 0 you will get to whatever your lates limit you to as a maximum score. Dont pay all to 0, leave 1 card with a small balance.

[BuffaloBoy]

Thanks pfarro! Appreciate the help.

[DallasLoanGuy]

i have seen 40 - 60 points from paying off revolving debt

[2b2rich]

With usage that high to your available limit, it's definitely going to bring your scores up (all else remains the same, considered.. simply meaning, there are no new lates, collections, inquiries, etc).

I agree with DallasLoanGuy, Mine have dropped from going from zero to 33% usage by 60pts, but then jumped right back up by the time the last paid off balance reported the next month.

I have no lates or dings of any kind, so YMMV, but you will see a difference.

One other thing that I want to note, I have seen where I have higher scores if I have about 3 revolving accounts reporting about 6% with all others reporting zero balances, than I have when all are reporting zero balances and only one reporting a small usage.   In the 'positive' indicators about my score, it always lists that I've shown recent usage of my revolving accounts.

[Anonymous]

If you can you should payy off all your credit cards because that would raise your credit score and more importantly lower your DTI ratio, which means that you can get more money to borrow for your dream home.