gypsyardor

MORE CONCISE QUESTION:

Does anyone have experience doing a cash out refinance, with a credit card balance rolled into the loan, and know how it has shown up on your credit report? Did it show up in a negative way to the credit card companies when they view your credit history before issuing new credit cards?

LONGER VERSION OF QUESTION:

Hi,

If I roll $20K from a credit card into a cash out refinance loan, will that negatively affect my credit? Will credit card companies see that on my report and no longer easily approve me for new credit cards?

We're in the middle of refinancing our home mortgage. Our debt/income ratio isn't great, but our credit is fantastic and we don't actually carry a lot of debt. We have the original mortgage at about $130K still owed, and one 0% credit card at about $20K (this was actually part of fixing up our home, but the path to getting that debt onto that card is too complex to fully show/explain it away).

The bank says they'd give us more $$ for the cash out refi if we roll that $20K credit debt into the loan. We want the cash out to finish fixing up our home. However, even though our home is really important...earning miles for travel is equally important to me. If credit card companies are going to view rolling that debt into the loan as a negative thing, I'd rather not go that route at all.

Anyone know how that's viewed by the credit card companies? I'm assuming it would show on the credit report as the balance transferred to a loan and the card closed.

Thanks!!