pay off CC debt or Home equity debt first?
Date: Sun, 02/13/2011 - 07:55
strickly from a credit score point of view, is better to pay off credit card debt first or home equity debt first?
is home equity debt taken into account as the percentage utilization??
If a credit card does not show a total available, is it NOT taken into account for percent of utilization?
quick story, I have a card that does not show a credit available, so I do not think it is used to for percentage utilization. If my home equity is, I think it would be better to pay the home equity down, to increase credit score quick. Then later (IF I NEED TO) use home equity to pay credit card, to then have the lower interest on home equity.
thouhgt?
is home equity debt taken into account as the percentage utilization??
If a credit card does not show a total available, is it NOT taken into account for percent of utilization?
quick story, I have a card that does not show a credit available, so I do not think it is used to for percentage utilization. If my home equity is, I think it would be better to pay the home equity down, to increase credit score quick. Then later (IF I NEED TO) use home equity to pay credit card, to then have the lower interest on home equity.
thouhgt?
Paying off the credit card debt as well as your home equity loan
Paying off the credit card debt as well as your home equity loan will have a positive affect toward your credit score and increase your scores. However, it is better to pay off the home equity loan because it is secured against a property. The property will be in jeopardy if you don't pay off the mortgage.
