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Amysrod

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Pay off credit card before deferred period ends or save money for down payment/closing cost?
I have a department store credit card that has a $3k balance. The deferred interest period will be ending in the next few months. If amount is not paid by the end of period, $600 in interest fees will be added to account balance. We are saving for our first home and hoping to purchase a home during the summer. Should we pay credit card off in full to avoid $600.00 of interest fees or just continue to make monthly payments? Will paying credit card in full raise credit score?

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with a 3k balance on a store card i'm assuming its over 20% utilization so it is hurting your score which means if you pay it off you will be dcreasing your utilization and debt to income ratio which is huge for apply for a house....and unless you buying a house for say $150k $600 isn't even a drop in the bucket compared to what its doing to your utilization which is hurting your score and quite frankly with a card that high is an eyesore trying to go for big ticket item like house...so to sum it up pay it off you save money on interest...decrease utilization....raise credit score and appear much more appealing to a mortgage lender

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