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Hello All,
We are planning to pay off all of our debts after selling our house. We have about 25K total in debts. If we pay it off in one shot, how does it impact our credit scores? Would that affect our mortgage application for our next house? Should I close some of the credit cards or leave them open after paying them off?
This must have been posted here a million times so I am sorry if I am asking the same questions.
Thank you so much and your input will be appreciated!
Ani
do not close the credit cards!!! Even with zero balanes, your AAoA could drop, and if you do add any debt to your cards that will casue your util % to be higher
We have credit cards, prosper loan and student loans. We would like to pay them off before applying for a home mortgage. I just don't know if it would help our credit scores etc. I also want to close credit cards that was opened last year or is that even a good idea?
Thanks much,
Ani
rmduhon27,
All of my debts are showing current since but the DTI is just way too high right now. My credit scores ranging from 680-720 but the DTI is hurting us, couldn't even qualify to get a pre-approval for 75K mortgage loan. Truly sucks and cannot wait to be debt free..i just don't want to pay them all off then our credit scores will go down..
Thanks, all for the input!
Ani
In all I had 26 baddies that I paid. My score actually dropped about 100 points in the process of disputing then paying off. While the DOFD didn't re-age, the accounts reported late payments when verified. I have 3 accounts paid, that I am waiting to report. These three have my UTI over 60%. Once updated, my UTI will be below 6%, so I should gain some points back. I'll also gain points back as I will move from 2 reporting accounts to 5. So, we will see. The good news for me is that by July of 17 14 of the 15 derogs showing will fall off. I will be starting a good will campaign once all my baddies have reported $0 balances.
@Anonymous wrote:In all I had 26 baddies that I paid. My score actually dropped about 100 points in the process of disputing then paying off. While the DOFD didn't re-age, the accounts reported late payments when verified. I have 3 accounts paid, that I am waiting to report. These three have my UTI over 60%. Once updated, my UTI will be below 6%, so I should gain some points back. I'll also gain points back as I will move from 2 reporting accounts to 5. So, we will see. The good news for me is that by July of 17 14 of the 15 derogs showing will fall off. I will be starting a good will campaign once all my baddies have reported $0 balances.
now thats the spirit! Good job keep up the good work