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In response to
"LIR: Does ST know? When applying for a mortgage, which looks worse? Credit Card or bank Line of Credit debt? -- (link)"
by
Name Withheld By Request
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Pay down the one that is closest to being maxed out.
Posted by
ceregon
Feb 24 '11, 08:47
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You get points for unused credit, like (credit card limit-current balance)/credit card limit. So if you have a balance of 100 on a 1000 limit you are only using 10% of the available credit, which is good.
Pay down the one that has the highest percent of utilization. Do not pay the line of credit off completely, you get points for currently used available credit.
Also, consider asking the credit card company to raise your limit. This will increase your credit score if they say yes, although they will probably check your credit before approving this which will temporarily lower your credit score.
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