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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16538
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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My wife and I have 600 credit scores. We are trying to raise

Resolved Question:

My wife and I have 600 credit scores. We are trying to raise our credit scores to purchase a home. We gave a number of accounts to a financial counseling company a couple of years ago and they have paid off over half of them. They are still working on 5 accounts. We are able to put away $1000 per month. Would it be better to save that money for a down payment or put that money to pay off the five accounts quicker to raise our credit score.
Submitted: 2 years ago.
Category: Finance
Expert:  Megan C replied 2 years ago.

Megan C :

Thank you for your question, and thanks for using JustAnswer.com

Megan C :

How are you today?

Megan C :

In my opinion, you should be saving the money towards a down payment on the home. Lenders look for strong down payments, and a larger down payment can offset some of the effect of the lower credit scores.

Megan C :

And a hefty down payment will lower your monthly payment more than the amount that having a lower score would increase it.

Megan C :

Do you have any further questions about this matter? If not, please rate as "excellent" so that I may receive credit for assisting you today

Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16538
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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