Hi, I've browsed this site for awhile and I have found some very useful info. I have a question regarding CC utilzation/credit score and obtaining a mortgage.
I would like to buy a home within the next 4 months and have the current credit cards/uitlization:
MC balance 6200 CL 8200 - util 75%
AMEX bal.. 1600 CL 19900 - util 8%
Visa bal. 8400 CL 10000 - util 84%
Disc. bal. 6200 CL 7500 - util 82%
Total bal. 22400, total CL 45600, overal util 49%
I have $50,000 in savings and I was wondering how much should I use to pay down credit cards and how much should I keep for a down payment? If I pay off the MC and Disc and pay down the Visa so that my uitl% is less than 20% and I still keep close to $40K for a down pmnt would that be the most beneficial? Or should I pay off the CC completely and keep $30,000 for DP.
I want to buy a house for around $300K and I make $100K/yr I'm not too worried about my front or back ratios, I just want to increase my scores the most in as short a time as possible.
I haven't pulled my credit report in about 8-9 months, but my scores were in the high 600's, with no missed payments, etc.
Maybe this post belongs in the mortgage section, sorry, I'm not too sure.