Jay247
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Try to fix as much of the credit as possible. Make sure the money you owe to each creditor, is below the 50% margin. that would give you a better chance. If you can get a 10+% down (more towards 20% down) you can have a higher chance of getting the loan and low interest. But try to fix her credit, the last thing she needs is to be stuck with a high interest payment. |
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alicialions
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always better to pay debts...then save and not get in more debt. |
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catskillflower
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i agree w/ you....def pay off the debts...and w/ that she will already have more money in her pocket...a loan payment or all of those bills every month...it is much easier to pay just one then 10 or so....i too am thinking of doing the same thing...have to get the credit score up higher...and w/ that also...the less money she has on it..the lower the finance charges...interest rate etc....keep pushing her towards that... |
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W P
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If the cash she's keeping can not generate more return than the interest on the debt, then she should pay off debt. |
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KORY K
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It is better to have enough money to pay six months of bills in Internet savings account or a money market account in case she loses her job or she has an emergency so she won't need to charge again. Paying bills early might help your fico score mine has gone up since I stared on line bill pay.
When You buy a house you get a lot of surprise expenses like the old owner property tax is much less than what you will pay. If you have savings when the surprise costs comes up it is such a relief I wish I could do it more often. |
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freybee
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Keep paying off her debts with the money she has, that was it will reduce the interest plus the ballance giving her more money in the long run and increasing her credit score,
It means being broke for a while, minding every penny but int he long run its worth it, itws what im doing now and im broke but sick of debts and paying so much interest....
Good luck |
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ankur a
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she can consolidate her debt and pay small amount on monthly basis and have some cash with her . for more info visit http://ankuronline.com/?p=9 |
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cathy
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I totally agree. Have her pay off ALL high interest debts with the low interest loan. Save enough in the bank for rainy days, but she's not going to get much interest these days by keeping money in the bank. However, she'll save a TON of money not having to use her credit cards anymore. Has she thought of a retirement fund? Some have low payments and they are tax free!
I used to have a lot of credit card debt. Now I live with less stuff, and only buy something when I have the money to pay for it. (I still have a mortgage, though!) I must admit, I'm happier now with less stress.
Good luck with the application! |
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nevyn55025
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If her credit cards are all under 50% of the limit then it doesnt matter that much. |
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Big Deal Maker
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For every $100.00 in credit dept. You lose $10,000.00 in buying power.
Pay down the dept. Keep enough for the down payment.
After the purchase of a home and with the added expences. She would be better off with those credit cards gone. |
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netdebt1
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Its always better to pay down debts unless you have less than 3 months expenses liquid. |
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NP
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As long as she is under 30% on all her credit card limits (getting closer to this ratio adds more points to your rating) and she's current and up to date(this also adds more points to your rating), she should save enough for the 3 % down payment.
Even if she doesn't have enough to bring it down to the 30%, then as long as she stays up-to-date on all her loans and credit cards, she should really try to save as much as she can for the home purchase. |
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♥ Heaven ♥ Lee ♥
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Low 700 is good.
It really depends on her other debts. The debt to ratio is what will determine if she should pay a bill off or not.
I would contact a bank or lender and find out what they suggest. If they don't require she pay it off then she has the extra money to put down which will bring her monthly payments down.
Good luck to her = ) |
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Alterfemego
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pay off debts |
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Ryan K
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when i first became a doctor i was overwheled with how much i got paid so i took out a $500 000 loan and bought a brand new lamborghini murcialago, this was in 2003. although the repayments take up lots of my pay i do not regret the purchase. i dont know maybe im stupid. no in fact i do know, i am stupid!!!!!!! |
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pinkpokkydots
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it is according on how much debt because they look at what other debt you have the low 700 isnt bad credit score thought if it isnt that much then your idea is just fun have fun searching for home i just got done doing that wasnt fun stressful |
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tamrn02
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Definately pay off debts. When you don't have debts you can start putting money into savings, this will help you for any emergencies you haven't thought of. Debt Free is best. However, it sounds like she's got her life under control with her credit score so whatever she wants to do is probably what she should do for her. |
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Hawaii Home
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It's actually simple to decide.
If the debt is say 12% and the bank is going to give her 3%, way put it in the bank? She will be losing 9% a month. Pay the debt, starting with the highest interest rates. CLOSE any acoount with an interest rate over 12%, you don't need it. |
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