Need your expertise

[Anonymous]

We currently have about $7500 in cc bills, total.

My fico score is 655 as of 3/08, my fiancee's is just a little under 700.

We just sold our house and will be netting 6000. We will be using the net of the sale and the tax rebate towards the cc payoffs. No lates in the past 2-3 years on anything.

How will this effect our credit scores? I have read it can do down significantly. Is this possible?

[Anonymous]

Paying down revolving debt will increase scores-

10 to 20 points per 10% of overall UTL.

I take it you are not buying another house?

Lack of an open mortgage could cost you a few points-

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trashyart2000 wrote:

We currently have about $7500 in cc bills, total.

My fico score is 655 as of 3/08, my fiancee's is just a little under 700.

We just sold our house and will be netting 6000. We will be using the net of the sale and the tax rebate towards the cc payoffs. No lates in the past 2-3 years on anything.

How will this effect our credit scores? I have read it can do down significantly. Is this possible?

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[Anonymous]

Yes, we are replacing the sold house with a new build (3 x our current house). Would this effect anything?

[Anonymous]

Tim- also, are you saying that in my situation, it is worse to pay off than to pay down? We are talking about $7000 over 3 cards.

Thanks!

[Anonymous]

The Fico points (for me) between paying all to zero and letting 1 or 2 report a small balance was 20 points- 

So for max FICO let 1 or 2 report a small balance- 

This is pretty easy with Scorewatch or another small monthly charge.

We paid off close to 50K of CC off last year- (It felt soooo good)

FICO like to see "responible use" of revolving-  

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trashyart2000 wrote:

Tim- also, are you saying that in my situation, it is worse to pay off than to pay down? We are talking about $7000 over 3 cards.

Thanks!

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[Anonymous]

Ah got it now. I will take your advice and do that. Besides, it would be nice to not have to spend every penny from the net sale to cc's!