Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Credit Scores
Profile Image

Question By

0 Contributions
0 People Helped
Got extra cash on hand - Should I use to pay down CC or for downpayment?
My question is this: Is it better to use some extra cash I just received to pay down credit card debt or is it better to have the cash on hand for more of a downpayment?

Here is the story: I have a $8k credit card, and the card limit is $20k. I just received a bonus check of $4,000 from my employer (after taxes). I wonder if I should use that $4k to pay down the credit card balance or use it as a larger downpayment for a house -- which I'm looking to finance in a few weeks. As a side note, my credit card util % is 33%

I'm considering going in on a 5% down Convential Loan, and I could definately the $4k for that. The only reason I would use the cash to pay down the credit card is if it SIGNIFICANTLY increases my FICO score by doing so (at least 50 pts). My current FICO score is 721. Would making this large payment do the trick? If it only makes the score go up 10-15 points for example, then to me it's not worth it.

I tried using the "Simulator" for this, but it didn't work.


Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.