Credit Card Question/General Credit Question

FH and I are getting ready to apply for a mortgage.

Should we pay off our low-balance credit cards and close the accounts before we apply?

Any improving-credit-score advice welcome. We're ok, but I want to try to get the best rate.

Re: Credit Card Question/General Credit Question

although i have not tried to purchase a house, i know a ittle something about credit. i suggest youpay down your low interest cc, but do not close them. imo, it looks worse to have all the cards closed. pay them down and maybe transfer all balances to one or two cards . good luck

Re: Credit Card Question/General Credit Question

we were told that it was better to have credit cards when we went..we were almost penalized because i only had one and fh only had a line of credit from the bank on his checking account..as long as the balances aren't astronomical and you both have paid on time each month i would say just pay little by little and keep them open..jmo

Re: Credit Card Question/General Credit Question

If you have had these cards for a long time, do not close them as they establish a credit history for you. If they are fairly new, and you have other cards that are older, it's up to you if you want them closed.

Re: Credit Card Question/General Credit Question

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Posted by VickiC

If you have had these cards for a long time, do not close them as they establish a credit history for you. If they are fairly new, and you have other cards that are older, it's up to you if you want them closed.

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credit cards do NOT establish credit, that is a farse........talk to a fannie mae person and they will help.......my mother has NO credit cards and has the best credit......and never has had them.........your own bills work for you

Re: Credit Card Question/General Credit Question

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Posted by maiahsdad

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Posted by VickiC

If you have had these cards for a long time, do not close them as they establish a credit history for you. If they are fairly new, and you have other cards that are older, it's up to you if you want them closed.

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credit cards do NOT establish credit, that is a farse........talk to a fannie mae person and they will help.......my mother has NO credit cards and has the best credit......and never has had them.........your own bills work for you

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Well, then everyone hears different things from different people. I have been told not to close old CC because they establish how long you have had credit and how well you pay on time. Same goes for debt like a Student loan, or a car.

People without CC get penalized just as much as people who have many cards. I know people who have been turned down because they have no other credit history besides their student loans.

Re: Credit Card Question/General Credit Question

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Posted by VickiC

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Posted by maiahsdad

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Posted by VickiC

If you have had these cards for a long time, do not close them as they establish a credit history for you. If they are fairly new, and you have other cards that are older, it's up to you if you want them closed.

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credit cards do NOT establish credit, that is a farse........talk to a fannie mae person and they will help.......my mother has NO credit cards and has the best credit......and never has had them.........your own bills work for you

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Well, then everyone hears different things from different people. I have been told not to close old CC because they establish how long you have had credit and how well you pay on time. Same goes for debt like a Student loan, or a car.

People without CC get penalized just as much as people who have many cards. I know people who have been turned down because they have no other credit history besides their student loans.

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I agree with Vicki C. Credit is a double-edged sword. You can have too much, you can have too little. Keep your oldest card open, that establishes 'length of credit', if you have balances on some cards it's ok, just make sure they are not close to being maxed out. Credit cards are not the only things that establish credit for you. Watch all your bills and don't forget your car loans, too.

Re: Credit Card Question/General Credit Question

There really isn't any reason to close credit card accounts. Once you open them... the damage to your credit score is already there.

If you want to pay them off to reduce your debt/income ratio... do it at least two months before you apply for any mortgage since it takes about that long for the major credit agencies to update their records.

Re: Credit Card Question/General Credit Question

I had two credit cards, that I never EVER used. When it came time to apply for a mortgage I closed them out.