Need info on Avant Loan....

[Evil1980]

I am trying to get the best credit scores. I have about a total of $7000 in credit card debt while my overall credit limit is $20,000. Need to do whatever I can do to increase scores to purchase a home within 3 months. Does anyone know if an Avant loan would drop my scores? I am thinking about taking one out to put all my cards at a 5% usage, which would be great. After I purchase the house I can use the cards with CLI to pay off the loan and return to where I am at. Does anyone know if this would be beneficial. I am closing on a purchase agreement in three months. I paid all negative items on my reports and it messed up my scores. My EQ went from a 620 to a 580, my XP went from 670 to 645, and TU went from 660 to 590. This all happened because of paid utility bill that was 6 years old. Need to do whatever I can to make this purchase work. Please help. My DTI is currently only 20%. I make more than $60k a year, and only have a car payment except for the credit cards. One other item is that I am currently on my wife’s CAP1 card which would lose $1.5k from my total of $7k if she just dropped me off her card. Would this help my CRs? Any or all info would help. Thanks.

[RonM21]

It is always a "YMMV" type thing, depending on each persons profile. With less than 3 months before the purchase, this can possibly drop your scores and they may not recover soon enough. Yes, you'll pay down your CC debt and with util going down there would be an increase.

But the new loan with a high balance would cause a score decrease also. In the end it may offset enough that you only gain or lose a few points. There isn't any certainty on what would happen. I speaking off of opinion and could be dead wrong.

Best of luck in reaching the goal!!

[tcbofade]

As mentioned, entirely a ymmv situation.  Talk to your mortgage loan officer, and get their opinion. 

[DeeBee78]

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@Evil1980 wrote:

I am trying to get the best credit scores. I have about a total of $7000 in credit card debt while my overall credit limit is $20,000. Need to do whatever I can do to increase scores to purchase a home within 3 months. Does anyone know if an Avant loan would drop my scores? I am thinking about taking one out to put all my cards at a 5% usage, which would be great. After I purchase the house I can use the cards with CLI to pay off the loan and return to where I am at. Does anyone know if this would be beneficial. I am closing on a purchase agreement in three months. I paid all negative items on my reports and it messed up my scores. My EQ went from a 620 to a 580, my XP went from 670 to 645, and TU went from 660 to 590. This all happened because of paid utility bill that was 6 years old. Need to do whatever I can to make this purchase work. Please help. My DTI is currently only 20%. I make more than $60k a year, and only have a car payment except for the credit cards. One other item is that I am currently on my wife’s CAP1 card which would lose $1.5k from my total of $7k if she just dropped me off her card. Would this help my CRs? Any or all info would help. Thanks.

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You can't use a credit card to make payments on an Avant loan - the only payment method is a checking account. You would have to take a cash advance on your cards, deposit/transfer the funds to your checking account, and then pay it off.