--- title: The Never-Ending Debate on Credit Card Debt Revolving Accounts description: Never-Ending Debate on Credit Card Debt Revolving Accounts image: https://info.carringtonmortgage.com/hubfs/ThinkstockPhotos-644358770.jpg --- [Skip to content](https://info.carringtonmortgage.com/knowledge-base/the-never-ending-debate-on-credit-card-debt-revolving-accounts#main-content) ![bell icon](https://info.carringtonmortgage.com/hubfs/raw_assets/public/Templates/2022/svg/Alert-Notifications-Icon.svg) [![Carrington Mortgage Services](https://info.carringtonmortgage.com/hs-fs/hubfs/carrington_logo_final_2col_rgb.png?width=250&height=57&name=carrington_logo_final_2col_rgb.png)](https://www.carringtonmortgage.com) - [About Us](https://www.carringtonmortgage.com/our-mission) - [Careers](https://www.carringtonhc.com/careers) - [Investors](https://www.carringtonhc.com/investors) - [Contact Us](https://www.carringtonmortgage.com/contact-us) [Recent Transfer](https://www.carringtonmortgage.com/new-customers) [Customer Login](https://www.carringtonmortgage.com/login) MAKE HOME WORK Manage My Home arrow-down-anticon/submenu Manage My Mortgage arrow-down-anticon/submenu Learning Center MAKE HOME WORK Manage My Home arrow-down-anticon/submenu - I Am Ready to Start - [Buy a Home](https://www.carringtonmortgage.com/home-loans/buy-a-home/check-existing-customer) - [Refinance My Home](https://www.carringtonmortgage.com/home-loans/refinance-a-home/refinance-step) - What Loan Is Right For Me? 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- [See the Schedule of Fees](https://www.carringtonmortgage.com/schedule-of-fees) - I Need Help With - [Mortgage Assistance](https://www.carringtonmortgage.com/mortgage-assistance) - [Disaster Assistance](https://www.carringtonmortgage.com/disaster-assistance) Learning Center - [About Us](https://www.carringtonmortgage.com/our-mission) - [Careers](https://www.carringtonhc.com/careers) - [Investors](https://www.carringtonhc.com/investors) - [Contact Us](https://www.carringtonmortgage.com/contact-us) --- Recent Transfer --- Customer Login # The Never-Ending Debate on Credit Card Debt Revolving Accounts [CMS Marketing](https://info.carringtonmortgage.com/knowledge-base/author/cms-marketing) [![Share on Facebook](https://info.carringtonmortgage.com/hs-fs/hubfs/EHO/facebook.png?width=24&name=facebook.png)](http://www.facebook.com/share.php?u=https%3A%2F%2Finfo.carringtonmortgage.com%2Fknowledge-base%2Fthe-never-ending-debate-on-credit-card-debt-revolving-accounts%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on LinkedIn](https://info.carringtonmortgage.com/hs-fs/hubfs/EHO/linkedin.png?width=24&name=linkedin.png)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Finfo.carringtonmortgage.com%2Fknowledge-base%2Fthe-never-ending-debate-on-credit-card-debt-revolving-accounts%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on Twitter](https://info.carringtonmortgage.com/hs-fs/hubfs/EHO/twitter.png?width=24&name=twitter.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Finfo.carringtonmortgage.com%2Fknowledge-base%2Fthe-never-ending-debate-on-credit-card-debt-revolving-accounts%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Finfo.carringtonmortgage.com%2Fknowledge-base%2Fthe-never-ending-debate-on-credit-card-debt-revolving-accounts%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=The%20Never-Ending%20Debate%20on%20Credit%20Card%20Debt%20Revolving%20Accounts) [![Share on Pinterest](https://static.hubspot.com/final/img/common/icons/social/pinterest-24x24.png)](http://pinterest.com/pin/create/button/?url=https%3A%2F%2Finfo.carringtonmortgage.com%2Fknowledge-base%2Fthe-never-ending-debate-on-credit-card-debt-revolving-accounts%3Futm_medium%3Dsocial%26utm_source%3Dpinterest&media=https%3A%2F%2Fcms.carringtonhomeloans.com%2Fhubfs%2FEHO%2Fpinterest.png) [![Share on Email](https://info.carringtonmortgage.com/hs-fs/hubfs/EHO/email.png?width=24&name=email.png)](mailto:?subject=Check%20out%20https%3A%2F%2Finfo.carringtonmortgage.com%2Fknowledge-base%2Fthe-never-ending-debate-on-credit-card-debt-revolving-accounts%3Futm_medium%3Dsocial%26utm_source%3Demail%20&body=Check%20out%20https%3A%2F%2Finfo.carringtonmortgage.com%2Fknowledge-base%2Fthe-never-ending-debate-on-credit-card-debt-revolving-accounts%3Futm_medium%3Dsocial%26utm_source%3Demail) ![ThinkstockPhotos-644358770](https://info.carringtonmortgage.com/hubfs/ThinkstockPhotos-644358770.jpg) It’s a wise choice to get a solid grip on your finances when you start the planning stages of buying a home. Not only can it help you determine how much you can afford to spend, but it can also help you strengthen your credit as you pull your reports, examine them for blemishes, and then work with the reporting agencies to fix them. Anything you can do to strengthen your credit report and increase your credit score works in your favor, but the one thing you think might be the best step – namely, paying off your credit cards and closing your revolving accounts – may not be the wisest choice. Though it seems counter-intuitive, there’s a method to this madness. To start, when lenders look at your credit report, they want to see that you have open revolving accounts – provided you’re responsible in how you handle them. And that’s the key. If you’ve got a number of revolving accounts open and most of them are late or in collections, this raises a red flag for lenders considering you as a loan candidate. On the other hand, showing lenders that you have a reasonable amount of revolving accounts that are well-managed and paid on time shows them that you’re a viable lending prospect. Remember that having a lower ratio between your debt and income actually works to your favor. After all, taking on a mortgage is a huge financial responsibility, and if you’re capable of showing that you’ve been managing your finances well up to this point, lenders will look at that as you being ready for a new financial step. Having too high of a debt-to-income ratio can work against you, as it may limit your loan choices and even impede your road to homeownership. While it’s possible to find certain lenders who will work with buyers who have credit issues, you’d be wise to work on getting your credit in a better place before you buy so you’re better prepared to become a homeowner. If you have too many revolving accounts that are in arrears, you’d be smart to pare down your list by paying them off, but not closing the account. Closed accounts actually register negatively on your credit score and also shorten the history on your credit report, which looks bad to lenders. If you really want to close accounts, it’s wise to wait until after you’ve secured your loan, gone through the closing process and moved into your new home. That way you’ll be finished with having to share your credit report and score with anyone who’s essentially a gatekeeper on your path to buying a home. Another thing to consider if you want to knock out your credit card debt: it’s not a good idea to take low balances on a handful of cards and transfer them all to one higher-balance card in a bid to reduce your debt or make it more manageable. This is an action that raises red flags for lenders, and can also negatively affect your credit score. If ever you’re in doubt on how to handle your credit card debt as you’re working on buying a home, make sure you talk with your lender for support, advice and assistance. They can help you make the right plan to manage it all.   ## Related Articles [![shutterstock_1376856668](https://info.carringtonmortgage.com/hubfs/shutterstock_1376856668.jpg)](https://info.carringtonmortgage.com/knowledge-base/not-all-debts-are-considered-equal) [Home Loans](https://info.carringtonmortgage.com/knowledge-base/tag/home-loans) [Credit Score](https://info.carringtonmortgage.com/knowledge-base/tag/credit-score) [Refinance](https://info.carringtonmortgage.com/knowledge-base/tag/refinance) ### [Not All Debts are Considered Equal](https://info.carringtonmortgage.com/knowledge-base/not-all-debts-are-considered-equal) When it comes to looking at money you owe, not all debt is created equal. While there are many shades of gray in life, there is absolutely good debt and bad debt. And... [Jill](https://info.carringtonmortgage.com/knowledge-base/author/jill) [Read More](https://info.carringtonmortgage.com/knowledge-base/not-all-debts-are-considered-equal) [![Student Loan Debt Article](https://info.carringtonmortgage.com/hubfs/Student%20Loan%20Debt%20Article.jpg)](https://info.carringtonmortgage.com/knowledge-base/student-loan-debt-can-you-still-afford-a-home) [Home Loans](https://info.carringtonmortgage.com/knowledge-base/tag/home-loans) [Mortgage Payment](https://info.carringtonmortgage.com/knowledge-base/tag/mortgage-payment) [Homeowner](https://info.carringtonmortgage.com/knowledge-base/tag/homeowner) ### [Student Loan Debt: Can You Still Afford a Home?](https://info.carringtonmortgage.com/knowledge-base/student-loan-debt-can-you-still-afford-a-home) While it is true that student loan debt impacts many parts of your life, it does not entirely impact your choice to obtain a mortgage. According to [Student Loan Hero](https://studentloanhero.com/student-loan-debt-statistics/),... 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