Shortcut Navigation:

Question for the Money Doctors

Question submitted on Feb 2, 2019.


I am expecting to get back about $3,000 on my income taxes this year. I was hoping to clear up my credit enough to qualify for a first time home loan. I have a charge off from a previous credit card from years ago of $1,800 and I currently hover around a 60/65% credit usage. Which would be better for me to do, lower my current usage or pay the old charge off?


Hi - I believe that clearing up any unpaid or late items would increase your credit score sooner than reducing your usage.  The quickest way to a strong credit report is to pay your credit card off every month.

For additional information visit