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Question for the Money Doctors

Question submitted on Oct 23, 2013.

Question

will it improve my credit score to pay my home mortgage pymt with a credit card and pay it before the 28day billng cycle?

Answer

I am not sure that I have enough information to answer the question.

What is your current credit score?

Do you have any other secured debt?

What other debts to you have?

Do you currently have a balance on your credit card?

What is the interest rate on all of these debts?

Even without the answers to all of these quesitons, it certainly seems to be a bad idea to incur credit card debt to pay a mortage secured by your home, even though you are planning on paying off the credit card bill at the end of the month. If you want to use your credit card to build your credit score, just be certain that you are managing your debt properly. Paying off your credit card debt or any installment debt on time each month will result in a higher credit score.


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