credit cards

[Matt Roberts]

Last year I bought a house with cash for 35k and fixed it up myself using credit cards (20k). I have a total of 30k on my cards and I would like to know how to improve my credit so that I can get a good rate on a mortgage on the same property. Should I take out a revolving line of credit to pay off the cards and then wait a few months to roll that debt into a mortgage? Will that send up red flags with the bank? Are there closing costs involved in the line of credit?

[Jassem A.]

@Devin Scott

30% for each card will be a better idea. Any time you have a card maxed out, it will count against you.  I have perfect payment history but because I have so many accounts maxed out, my credit score is high 500s or low 600s and considered "poor" or "fair".