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Question for the Money Doctors

Question submitted on Jun 13, 2019.

Question

Am I better off to take out a HELOC to pay down credit cards before selling and buying a new house, thinking my credit score will jump higher based on low or no revolving debt? My credit score factors are great except for the revolving debt I have.

Answer

It sounds like you have over extended yourself using credit cards.  Why not put off buying a new house and concentrate on paying off your credit cards by tightening your belt.  Replacing credit card debt with new debt probably won't make a big improvement in your credit score.


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