Should I pay off my credit card now?

Question

I want to refinance my home loan but I have a credit card to pay off and I want to close that account which in turn would make my credit rating look better for the refinancing.

I have 2 options.

I have enough money available to me in my mortgage offset account that I can use now to pay the credit card off or I can leave that there and save up over the next month to pay off the credit card in full.

If I take the amount in my offset account to pay for the credit card then my loan amount will be a little bit higher as it's not offsetting the outstanding balance anymore.

I am not sure if I should use that money now and close the credit card account asap or if I should wait another month until I have it paid it off from my savings.

Which option would be better from the banks point of view?

Tricia · Accepted Answer

get the c card debt out of the way. if you sign the  loan papers make sure that they contain a clause enabling you to make additional prin. only payments at will.   in the long term when things settle down for you , you can utilize this option in addition to your regular payments and bring your mortgage back into line. just remember it will only change the length of your loan time and not reduce your monthly payments at all. it is a real cost/ money saving tool.

Anonymous · Answer

Definitely pay the credit card off if you can afford to, because it's the better financial decision. It probably won't affect your credit much.

Anonymous · Answer

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HoneyPie · Answer

I would say just pay it if you can, it couldn't hurt

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Should I pay off my credit card now?

4 Answers