topic Re: Should I pay my CC balance or keep the money in the bank for my closing? in Mortgage Loans

Should I pay my CC balance or keep the money in the bank for my closing?

newhouse2013 — Thu, 19 Sep 2013 00:52:20 GMT

I close in 12 days and have been living off of one CC for the last month. I didn't think about not using the CC throughout the process, I just didn't acquire new credit as suggested. My credit card is due on the 22nd, which I normally pay in full but I want to make sure that I have the money on hand in case I need it when I close on the 30th. But I know if my utilization shoots up to 70-80% that might cause some concern. I was thinking maybe I can pay the bill on the 22nd, wait until it reports and then take a cash advance to pull the money back out and put it in my account. I would pay it off mid-October so that isn't an issue. The process so far has been pretty smooth and they have only pulled my credit once, they didn't require any credit card statements and said they will only do a soft pull at closing but I don't know if the spike in utilization will be a problem. Or should I take my chances, and just pay the minimum, take the score hit and pay it off the next month?

Thank you for your help.

Re: Should I pay my CC balance or keep the money in the bank for my closing?

anca21bi — Thu, 19 Sep 2013 01:16:58 GMT

I would definitely pay down to 10%, it could cause your fico scores to drop and then result to getting a higher interest rate. Just my opinion...

Re: Should I pay my CC balance or keep the money in the bank for my closing?

DallasLoanGuy — Thu, 19 Sep 2013 22:32:18 GMT

@newhouse2013 wrote:
I close in 12 days and have been living off of one CC for the last month. I didn't think about not using the CC throughout the process, I just didn't acquire new credit as suggested. My credit card is due on the 22nd, which I normally pay in full but I want to make sure that I have the money on hand in case I need it when I close on the 30th. But I know if my utilization shoots up to 70-80% that might cause some concern. no concern if your scores are still ok... I was thinking maybe I can pay the bill on the 22nd, wait until it reports and then take a cash advance to pull the money back out this would be a loan. and not allowed to be used for closing funds. are you short on the cash to close? and put it in my account. I would pay it off mid-October so that isn't an issue. The process so far has been pretty smooth and they have only pulled my credit once, they didn't require any credit card statements and said they will only do a soft pull at closing but I don't know if the spike in utilization will be a problem.
Or should I take my chances, and just pay the minimum, take the score hit and pay it off the next month? <= my recommendation

Thank you for your help.

Re: Should I pay my CC balance or keep the money in the bank for my closing?

newhouse2013 — Thu, 19 Sep 2013 23:13:10 GMT

@DallasLoanGuy wrote:
@newhouse2013 wrote:
I close in 12 days and have been living off of one CC for the last month. I didn't think about not using the CC throughout the process, I just didn't acquire new credit as suggested. My credit card is due on the 22nd, which I normally pay in full but I want to make sure that I have the money on hand in case I need it when I close on the 30th. But I know if my utilization shoots up to 70-80% that might cause some concern. no concern if your scores are still ok... I was thinking maybe I can pay the bill on the 22nd, wait until it reports and then take a cash advance to pull the money back out this would be a loan. and not allowed to be used for closing funds. are you short on the cash to close? and put it in my account. I would pay it off mid-October so that isn't an issue. The process so far has been pretty smooth and they have only pulled my credit once, they didn't require any credit card statements and said they will only do a soft pull at closing but I don't know if the spike in utilization will be a problem.
Or should I take my chances, and just pay the minimum, take the score hit and pay it off the next month? <= my recommendation

Thank you for your help.

Thank you, no I am not short on cash for closing but it's close. I wanted to make sure that I had a little extra in case I needed it. But I will pay my cc bill and leave a little extra in there. Hopefully my score won't go down too much.