Paying off credit cards: questions.........
OK, here's my situation: I recently got married, and I moved into my husband's apartment. I own a small house that I lived in prior to my marriage, and we are selling that (almost to the closing date now). I will walk away with about $14000.00 after the close. I have $25000.00 in credit card debt (it just makes my stomach turn to even admit that). I have a total of nine cards. I am going to use the money to pay down on the credit cards, but I need some feedback on the best way to do this.
My plan is to start at the card with the highest interest and work my way down the list until the money runs out (which will pay off 6 of the cards, leaving me the three with the highest totals). That makes sense, right? To keep the debt with the lowest interest and get rid of the high interest?
My husband and I plan to purchase a new home after we get this business over with. I pulled my credit reports, and I have a FICA score of 665. I'm just wondering how paying these cards off will affect my score. Does anyone have any input on this? I just don't want to think that I'm doing the right thing by paying down my debt, (which I believe I am), and end up doing it in a way that messes with my credit score. Also, does anyone know how long after you pay off a credit card that it takes for it to be reported to the credit agencies?
Any advice would be most welcome.