topic Will paying down credit card cause credit line decrease? in Credit Cards

Will paying down credit card cause credit line decrease?

Anonymous — Sat, 21 Mar 2009 18:11:27 GMT

I want to refinance my house to pay off $15,000 of high interest credit card debt. I have $3500 to pay down on two cards to boost my score a bit (TU688 and EQ684) to get best re-fi rate.

Seeing that some of you have had major CL reductions, what effect do you think that paying down these two cards by $3500 will do?

Re: Will paying down credit card cause credit line decrease?

Anonymous — Sun, 22 Mar 2009 18:25:16 GMT

I would never refinance my house to pay off credit card debt...do you have other options? Maybe some kind of personal loan or a new CC with a 0% BT offer?

Re: Will paying down credit card cause credit line decrease?

Anonymous — Tue, 24 Mar 2009 01:19:30 GMT

I wouldn't refinance just to pay off credit cards! The better option is trying to find a lower rate card you can balance transfer to. Too many people got into trouble using their house as financial leverage. Good Luck with whatever you decide.

Re: Will paying down credit card cause credit line decrease?

Anonymous — Tue, 24 Mar 2009 01:21:09 GMT

Suze Orman will KILL you if you refinance your house to pay off credit card debt

Re: Will paying down credit card cause credit line decrease?

KingAdrock — Tue, 24 Mar 2009 01:31:48 GMT

In this time of stingy lenders and poor real estate growth, a refi on your house to pay off your CCs is a bad idea. It isn't always a great idea in any economy, since many people can't resist using those fresh clean cards again. My parents made this mistake.

Re: Will paying down credit card cause credit line decrease?

Schoolbuskid — Tue, 24 Mar 2009 01:32:02 GMT

From the looks of the previous post.....DONT DO IT! I'm sure their are other options as suggested!

Re: Will paying down credit card cause credit line decrease?

Anonymous — Tue, 24 Mar 2009 10:43:22 GMT

I would say only do it if you are going to close the accts or have the CL at 1000. neither of which would be good for your credit. Unless you have serious credit card problem don't do this.

Re: Will paying down credit card cause credit line decrease?

Anonymous — Tue, 24 Mar 2009 10:53:11 GMT

try 0% BT card first, get the debt down, then you can refinance your house still but w/out taking cash out. (current 30year fixed rates are tempting for refinancing to anyone right now)