This post originally appeared June 28, 2018 on CreditCards.com as “Should I pay off or close my credit card to get a better mortgage? ”
By Barry Paperno
Dear Speaking of Credit,
Can you pay off your credit card to get a better mortgage? Or close the credit card to get a better mortgage? Which one is the best idea? – Marguerite
If by “better mortgage” you mean one with a lower APR, the best of your two ideas will soon be quite obvious when we consider some credit scoring details.
There are other factors besides credit scores that affect your ability to qualify for a mortgage: debt-to-income ratio, the amount of money you have in the bank and length of time at your job, to name a few. Yet, with these and other such elements firmly in place, you can make that mortgage more affordable simply by raising your score.