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Discussion Starter #1
i just got my bonus check and was trying to decide if it was better to pay down a CC or save the money for a house down payment

suggestions?
 

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If you can handle the monthly payments of the CC, save the cash for the downpayment on the house. It's usually more money than you expect so you need as much cash as possible for anything unexpected.

If you have any left over then pay off some debt.
 

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I'd keep it available until you sign your life away and are sure you don't need it - then I'd pay down the 9-22% debt instead of the 5-7% home loan.
 

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Discussion Starter #4
so it would not be more beneficial to the credit score to get rid of that payment? It is a significant amount (thousands)

This will be (hopefully, if everything keeps going along) my second home purchase so I am aware of the costs.
 

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Actually paying down the card below %50 of the limit is worse than having it at 50% or slightly above. There is a magic formula they are looking for. They want to see some debt.
 

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Tell you what Bub...You sign the back of that thing and send it this way and your problem will simply go away. aahhhhh
 

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Discussion Starter #8
oh i have debt, that is not a problem - 2 cars, bike, 2 credit cards
 

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If your down payment is close to 20% of purchase price, use it to get closer to 20%. If nowhere close to or over 20%, pay down CC. 20% typically will get you out of paying mortgage insurance (at least in Illinois).
 

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Discussion Starter #11
Quiet954 : If your down payment is close to 20% of purchase price, use it to get closer to 20%.  If nowhere close to or over 20%, pay down CC.  20% typically will get you out of paying mortgage insurance (at least in Illinois).
i may not have to come up with any down payment. if i reuse my VA loan, there is no requirement for a downpayment and NO PMI
 
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