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robj97

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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.

Thanks!

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