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Hey yall, I'm looking for some advise from those with experience or knowledge in rebuilding personal credit, paying off existing CC debt, all in preparation of buying a home later this year.
Quick run down... I have about 25k in CC debt, which has my credit utilization running too high. I have a cash bonus from working coming my way some point this year. The date is always a bit of a moving target but expected between June and Oct...
I have approval for 25k loan through a debt consolidation lender at 10 point lower interest than current CC but about 800 fee.
I say all that to ask, should I take the loan to wipe out my CC debt, pay off the loan in full with the bonus money within the next 6 months or less. My thought is this will allow time starting now for my credit score to begin rebuilding, and maybe the new loan aka a new line of credit will also help boost score, especailly once paid off?
Thoughts, advise, or otherwise?? Much appreciated all!
Quick run down... I have about 25k in CC debt, which has my credit utilization running too high. I have a cash bonus from working coming my way some point this year. The date is always a bit of a moving target but expected between June and Oct...
I have approval for 25k loan through a debt consolidation lender at 10 point lower interest than current CC but about 800 fee.
I say all that to ask, should I take the loan to wipe out my CC debt, pay off the loan in full with the bonus money within the next 6 months or less. My thought is this will allow time starting now for my credit score to begin rebuilding, and maybe the new loan aka a new line of credit will also help boost score, especailly once paid off?
Thoughts, advise, or otherwise?? Much appreciated all!