Credit Scores

[cati]

Does anyone know if it is best to close the credit card account, but still pay the monthly payments? Or should you wait until you get the card paid for in full and then close the account. Does it matter?

 

[Pixie_Dust]

Originally posted by ducklite
Over 700 is fine. For conventional mortgage purposes they generally don't write anything under 620. Anything over 800 is awesome. When I was a loan officer most "great loans" had scores in the mid 700's to low 800's. The average was mid 600's to low 700's. The highest I ever saw was an 880.

That's our score too I am proud. The mortgage guy said he only ever saw one higher than ours, and that was some rich guy's who literally made ten times what we are "worth."

 

[Pixie_Dust]

Originally posted by cati
Does anyone know if it is best to close the credit card account, but still pay the monthly payments? Or should you wait until you get the card paid for in full and then close the account. Does it matter?

Evidentally closing accounts dings your score. Just pay them off, or at least pay them down so the percentage you owe vs. available credit is high.

 

[Jenn Lynn]

I know my Dad has excellent credit. he was told that the only way it could be higher was if he were older (he's 47.)

I checked my score and I have a 738. I am happy with that.

 

[ducklite]

Originally posted by cati
Does anyone know if it is best to close the credit card account, but still pay the monthly payments? Or should you wait until you get the card paid for in full and then close the account. Does it matter?

I don't think it matters. If you are borderline with a mortgage as far as ratios go, and the account is closed and you point this out to the Underwriter (meaning the monthly payment will only go down) it could be a factor to get the loan approved.

Anne

 

[floridafam]

cati,

We closed a few accounts in the past but always paid them off first. I didn't want a closed account with a balance.

We kept one CC and keep the balance to less than 60% of our credit limit.