STYLETHREAD -- LET'S TALK SHOP!

ILoveChoo · Hermes

random credit question

Hermione · Kate Spade

didn't you need that money to pay your bills, etc b/c of the surprise tax situation?

that aside, i would definitely pay off the credit card, and then keep making student loan payments and put the $ down towards a house/ condo

small fry · Chanel

Tough question but if it was me I would pay off my debits first.Than work on your down payment for a house. I was in a situation like that before and now I wish I had paid my debts off because if puts a damper on my credit. At least you could apply for a loan for a house if your credit is paid and in good standing.

jj · Kate Spade

I vote to save it for the downpayment. Student loans are considered "good debt" and as long as you make your payment on time, it doesn't negatively affect your credit rating. If you have an $800 balance on a card with a limit of, say, $5000, that is good too because your ratio is low. If it's $800 with a limit of $1000, you may want to pay a little of it off to make the ratio better.

ILoveChoo · Hermes

Hermione wrote:

didn't you need that money to pay your bills, etc b/c of the surprise tax situation?

This is left over after I take care of that. I had completely forgotten about some money that my Mom had hidden away for me.

laken1 · Hermes

jj wrote:

I vote to save it for the downpayment. Student loans are considered "good debt" and as long as you make your payment on time, it doesn't negatively affect your credit rating. If you have an $800 balance on a card with a limit of, say, $5000, that is good too because your ratio is low. If it's $800 with a limit of $1000, you may want to pay a little of it off to make the ratio better.

This is what I think too. As long as your total cc balances aren't throwing off your debt to income or your balance is high compared to your limit like jj said, it really doesn't "hurt" you for it to be out there. It becomes a problem when the opposite is true. And when I bought my house i found that we needed more upfront than I thought we would between closing costs, % expected down, upfront insurance we had to pay, etc etc.

JoceyBaby23 · Gucci

laken1 wrote:

jj wrote: I vote to save it for the downpayment. Student loans are considered "good debt" and as long as you make your payment on time, it doesn't negatively affect your credit rating. If you have an $800 balance on a card with a limit of, say, $5000, that is good too because your ratio is low. If it's $800 with a limit of $1000, you may want to pay a little of it off to make the ratio better. This is what I think too. As long as your total cc balances aren't throwing off your debt to income or your balance is high compared to your limit like jj said, it really doesn't "hurt" you for it to be out there. It becomes a problem when the opposite is true. And when I bought my house i found that we needed more upfront than I thought we would between closing costs, % expected down, upfront insurance we had to pay, etc etc.

I agree with JJ and Laken. Some debt is okay.. and you are probably going to need more down payment money than you think, after all is said and done.

JackieO527 · Dooney & Bourke

First I would pay off the credit card, but I would continue to use the credit card and just pay it off in full when ever you use it. I would continue making Student Loan Payments as scheduled and use the money as a down payment on a condo/house.

Deuce · Dooney & Bourke

I would pay the credit card, and save the rest.

On a side note If you pay of your card don't close it. By having the card open it show a low debt to income ratio and affects your credit score positively.