Credit ratings are based upon your timely payments each month. If you have many missed payments on your mortgage the negative impacts will stay on your credit report for seven years. If you are considering selling your home for cash because you foresee continued late or missed payments you would be saving your credit rating from a historic record of negative impact. If you pay your house off in full then that will remain on your credit rating for ten years.

Selling your property in a short sale (selling for less than its value) will also negatively affect your credit rating. A short sale of your property will remain on your credit report for ten years. However, if you are selling your home quickly in order to buy into another, more affordable property, then you can look forward to a (conversely) higher credit rating in perhaps six months.

Sell your home for cash without repurchase of another property

Selling your home without purchase of another property will simply keep your credit rating at a status quo. However, earmarking the proceeds toward lowering (not removing) credit card debt will be a positive to your credit score. Your credit score is dependent on debt; specifically a mix of debt. You would not want to pay off all credit cards but you would like to get them to a manageable per month payment in order to improve your credit score significantly. Consider consolidating them into an interest free payback status. As long as you can pay the balance off within the agreed time frame you have improved your credit score and put money back into your pocket by avoiding perhaps hundreds of dollars or more in interest fees.

Benefits of a cash sale

Cash sales do not require repair, the sale can be “as is.” With cash sales you can avoid expenditures like home inspection and mortgage. Cash sales close quickly. So many aspects of selling a house traditionally require painstaking time waiting on title companies, inspection companies, buyer’s bank approval…the list goes on. Cash sales end it quickly, allowing you to move on.