Tips to alleviate credit card debt

There are a few ways to pay off credit card debt before you qualify for a mortgage loan, but doing so can have a short-term negative effect on your credit score.

Think about a card with a 0% introductory APR.

Your credit will take a small hit if you apply for a new credit card with an introductory APR of 0% merely because a hard inquiry was made into your account. If you intend to apply for a mortgage loan during the next several months, keep this in mind.

Borrow from family and friends

Obtaining a loan from friends or family members is another option for paying off debt. Just keep in mind that lenders use your monthly payment amounts, not your credit card balance, to determine your DTI.

Your DTI won't be significantly impacted by paying off a portion of a credit card loan, but it might be just enough to lower it to below 36 percent.

Your debt can be converted into a personal loan.

Another option is to combine all of your credit card debt into one personal loan. Typically, doing so would help you pay off debt more cheaply each month, improving your DTI ratio.
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