Tilted Forum Project Discussion Community - View Single Post

NoSoup · 05-25-2003, 08:33 PM

RyeZingSon:

If you pay off your credit cards and close them, the Credit Reporting Agency will see exactly that. They are still subject to the 7-10 year rule. However, because they are closed, (and not charged off) they will impact your bureau less and less as time goes by.

Consolidating your debt either on a first or second mortage, by the way, is an excellent idea. First and foremost, you will almost certainly have a lower interst rate than the credit cards, and the interest you pay on a mortgage is generally tax deductible.

If you don't qualify to refinance your home at a normal institution, see if you can qualify at a more high risk institution. Even if your second mortgage rate is 10%, it is much better than the 20%-29% you are probably paying on your credit cards.

Good Luck! Let me know how it works out.

Thanks for posting.

05-25-2003, 08:33 PM	#9 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	RyeZingSon: If you pay off your credit cards and close them, the Credit Reporting Agency will see exactly that. They are still subject to the 7-10 year rule. However, because they are closed, (and not charged off) they will impact your bureau less and less as time goes by. Consolidating your debt either on a first or second mortage, by the way, is an excellent idea. First and foremost, you will almost certainly have a lower interst rate than the credit cards, and the interest you pay on a mortgage is generally tax deductible. If you don't qualify to refinance your home at a normal institution, see if you can qualify at a more high risk institution. Even if your second mortgage rate is 10%, it is much better than the 20%-29% you are probably paying on your credit cards. Good Luck! Let me know how it works out. Thanks for posting. __________________ I have an aura of reliability and good judgement. Just in case you were wondering...