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Mortgage DP or pay down CC debts?
First question here so bear with me. I am wanting to buy my first home in the next few months. I looked into it in January and my low credit score was 517. I've done some work since then and Credit Karma tells me the TU score is now 623. I expect it to go up about 20 points in the next few weeks as I take care of a collection (yes, I am trying PFD). Other than the one collection I've got a few bills 30 days overdue in the past 9 months or so, my biggest problem (it seems) is with my credit to debt ratio. It's high.

I am working a very small PT job in addition to my regular job and I am guaranteed to gross about $5700 over the next 7 months from it. I intend on using this to pay down some of my credit card balances. I will also be getting a $5K bonus from my regular job in November. I've got about $4K in savings that I planned on using for a down payment on the house.

My question is, in terms of getting a mortgage, would it be better to use all of these extra bucks to increase the down payment (which might help my CS/mortgage chances) or towards paying down the debt (which might help my CS/mortgage chances)?

If it helps, I live in a relatively low income area and a really, really nice house with property can be had for $79K. I've seen some I liked for as low as $35K but they need a little work or are in a neighborhood it wouldn't be safe for me to live in.

Any advice would be appreciated.

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to get a mortgage

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For most mortgages you would need at least a credit score above 615.  The credit score on credit karma is not the score your lenders will see when they run your credit for a mortgage - the ones the lender will see will more than likely be lower than what you see on here.  Credit card utilization is a very important part of your credit score so I would suggest getting your credit card debt to at least 30% utililization and preferably lower.

As an example, my credit karma TU score is 640, however, the one my lender got from "the real trans union" was only 613 so my lender suggested paying down some of my credit cards to at least 20% utilization to increase my score.

Hope this helps

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