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Valued Contributor
ryanbush
Posts: 1,293
Registered: ‎08-19-2012

Re: GECRB has no max limit!!!


youngandcreditwrthy wrote:
That or they'll straight up deny me haha! I actually paid an auto loan in full but it was on my mom's credit :-/ not mine meh :-(

I don't think you will have any problems, I am only 27 and have had at least 8 car loans (some of them for my dad when he was going through divorce) all of them have been over 45k up to 80k

 

Should be no big deal with your income

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Valued Contributor
FinStar
Posts: 5,156
Registered: ‎10-21-2012

Re: GECRB has no max limit!!!


ryanbush wrote:

acleynes wrote:

To the original poster, I am really impressed you have so much credit available for a person with a FICO score in the mid to high 600 range.

 

However, I can't help but feel that having so many different credit cards with such high limits, actually makes you look less favorable to a mortgage lender.

 

I know you use less than 1% of your total available credit, but the potential exist for you to spend more in one month than what you might make in an entire year.

 

If I was a lender, that would terrify me.

 

Also, I hope most of your cards don't have any annual fees. 

 

 


@young - He is right though...  I know you claim HHI on your apps but you stated in another thread a while back that you make around 70k if i remember accurately.  You could literally charge twice as much as you make in a year on credit cards...

 

I'm not going to be negative on what you're doing at all but I feel like you will have issues when it comes time for a mortgage...  until them swing away!!! lol


The fact that the OP uses HHI (as an inflationary ratio to offset obtaining higher limits) and aggressively seeking CLIs so frequently (for padding purposes) which allows him to add more debt (last count 10K-11k?) thereby disproportionally giving the illusion of low utilization and shifting balances from one lender to another through balance transfer offers (debt pyramiding).  If the pattern continues long term, it will eventually land on the radar with some lenders - perhaps not today but down the road.  It happens more often than one thinks and lenders do look for this type of behavioral pattern.  At this point it's more of an impulse game and bling factor.
New Contributor
acleynes
Posts: 66
Registered: ‎10-30-2011

Re: GECRB has no max limit!!!

^ To the post above.

 

I don't want to rain on anyone's parade or anything.  I am not a "hater" by any means.  I am speaking as a concerned parent/bystander. 

 

I feel the fact that there are so many open credit lines, with such high balances, BUT a mediocre credit score (in the mid 600's)  - that original poster is actually doing himself a disservice.

 

His available credit is not typical of someone in that score range.  I think it will raise a lot of red flags when he does decide to purchase a home.

 

I know the original poster mentioned he did not plan on buying a home in the immediate future, but I believe he should reconsider.  Especially since he has a house hold income over $140,000/year.  That is almost 3X greater than the typical American household.

 

Real estate is the #1 way the average Joe becomes a millionaire.  It was true before the housing market crashed, and it is still true now. 

 

For 99% of us on this forum, buying a home will be the single largest purchase we will make in our lives.  I believe most members' ultimate goal is to get a high FICO score so they can obtain the best mortgage rate and highest limit possible.  I think rewards are secondary to mortgage when it comes to people's ultimate goal. Those that focus on rewards, most likely already have their own home too.

 

What I am trying to say is, increasing your credit limits is an illusion.  You are not actually increasing your networth.  You are increasing your net risk.

 

If you want to increase your networth, buy a house.  I know the housing market crashed in 2006 and ruined a lot people's lives.  But houses are still one of the best investments one can make. 

 

Think about it this way.  Every time you pay rent, you will never see that money again.  In fact, your rent next year might go up every year because of inflation.

 

But someone who pays their mortgage, builds a little bit more home equity everytime they pay their mortgage loan.  And if you were smart enough to get a fixed rate at a low interest rate, you are shielded against inflation.

 

  

 

 


Starting Score: TU 749 02/02/2014
Current Score: TU 749 02/02/2014
Goal Score: 850


Senior Contributor
youngandcreditwrthy
Posts: 6,154
Registered: ‎08-16-2012

Re: GECRB has no max limit!!!

I do indeed have a strategy to significantly reduce my current debt load by the time I finish school. I also have an amount equal to
My cc debt in easily accessible liquid cash accounts... Well, it'd take a week to cash out the investments I have. Tbh, I kind of like the idea of leverage and taking advantage of 0% offers at this stage of my life.
I know that I'd like to purchase a home at some point, but I'm content with the way I manage my finances currently. I like to be trusted with high limits, and I have self control. My mother has NO cc debt, mortgage debt, or auto loan debt; she accts for the other part of the hhi. I really like the liquidity having so much avail credit affords me.
And I don't have high balances.... Well, on like two cards... Lol but I know exactly when the 0% expires and plan to pay accordingly.
Out of 17 cards, 5 have balances... 3 are revolved ($4500/5000 Freedom,1000/4000 Motiva, 6300/7700 Trav Amex). 0-3.99% aprs.
Also worth noting that my score was in the 720-740 range before opening a recent few accounts... Now it is like 680-700 across the board... I don't think that's mediocre, and I'm firmly in the garden with intent to reduce those two cards below 80%- should be very easy with Freedom since the $5k limit is low (never thought I'd say that hah!)

Thanks for the advice :-) I do have a longer term perspective from a financial standpoint; that's the reason why Ive been so aggressive with my credit strategy!
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| Wmt Discover $12.5k | BR Visa $12.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Arrival $12.7k | Smile Gen $7.25k | Dillard's $5k| West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Valued Contributor
ryanbush
Posts: 1,293
Registered: ‎08-19-2012

Re: GECRB has no max limit!!!


acleynes wrote:

^ To the post above.

 

I don't want to rain on anyone's parade or anything.  I am not a "hater" by any means.  I am speaking as a concerned parent/bystander. 

 

I feel the fact that there are so many open credit lines, with such high balances, BUT a mediocre credit score (in the mid 600's)  - that original poster is actually doing himself a disservice.

 

His available credit is not typical of someone in that score range.  I think it will raise a lot of red flags when he does decide to purchase a home.

 

I know the original poster mentioned he did not plan on buying a home in the immediate future, but I believe he should reconsider.  Especially since he has a house hold income over $140,000/year.  That is almost 3X greater than the typical American household.

 

Real estate is the #1 way the average Joe becomes a millionaire.  It was true before the housing market crashed, and it is still true now. 

 

For 99% of us on this forum, buying a home will be the single largest purchase we will make in our lives.  I believe most members' ultimate goal is to get a high FICO score so they can obtain the best mortgage rate and highest limit possible.  I think rewards are secondary to mortgage when it comes to people's ultimate goal. Those that focus on rewards, most likely already have their own home too.

 

What I am trying to say is, increasing your credit limits is an illusion.  You are not actually increasing your networth.  You are increasing your net risk.

 

If you want to increase your networth, buy a house.  I know the housing market crashed in 2006 and ruined a lot people's lives.  But houses are still one of the best investments one can make. 

 

Think about it this way.  Every time you pay rent, you will never see that money again.  In fact, your rent next year might go up every year because of inflation.

 

But someone who pays their mortgage, builds a little bit more home equity everytime they pay their mortgage loan.  And if you were smart enough to get a fixed rate at a low interest rate, you are shielded against inflation.

 

  

 

 


Whle I agree with most of your posts I don't believe real estate is a "investment" if you have to finance it.  Maybe if you are finanacing it for 10 years max with a extremly low interest rate, but for the average person that is paying 3-4% over 30 years I believe there is anyway the property values will rise fast enough to account for the interest/taxes/insurance you would pay to own that property.  For example if you financed 200k on a mortgage at 3.5% for 30 years you would pay 123,312.18 in interest over the course of your mortgage. Figure in 1800 per year for personal property taxes (my home state) and 1K a year for home owners and you will pay an additional 84k which puts you're total paid up to 407,312.18.

 

Now this price is just you're total paid for the property, this doesn't include any maintace cost like a new roof after 20 years or new flooring every 10 years.  It's hard for me to believe that any average property would more than double in value over the course of 30 years.

 

my for example lets figure that you put that money (900 house payment + 150 taxes insurance) into just a 1% APR savings account after 30 years you would have 440,610.98, now lets say that savings account earns 2% you're at 517,363.48.

 

I'm sorry I don't believe sitting on real estate and having to finance it is a good investment.

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New Contributor
acleynes
Posts: 66
Registered: ‎10-30-2011

Re: GECRB has no max limit!!!

[ Edited ]

^ You have to live somewhere.

 

I doubt most people live rent free.  And the majority of Americans do not pay for their homes in cash.

 

You are looking at a mortgage payment as if it were funds you can invest elsewhere. I am talking about mortage as funds you are likely to pay out of pocket regardless.

 

Rent = zero net gain

 

Mortgage = home equity

 

Also, what other instance can you get a $200,000 loan at 3.5% interest with a 650 credit score???

 

$200,000 home at 2% appreciation for 30 years = $362,272.32

 

a $162,272.32 profit + you get to keep the home.

 

Or you can pay rent for 30 years and get $0.00

 

For the vast majority of Americans who can not afford to pay lump sum for their homes, owning a home is a very sound investment.


Starting Score: TU 749 02/02/2014
Current Score: TU 749 02/02/2014
Goal Score: 850


Established Contributor
scenery_guy
Posts: 952
Registered: ‎07-24-2012

Re: GECRB has no max limit!!!


ryanbush wrote:

acleynes wrote:

^ To the post above.

 

I don't want to rain on anyone's parade or anything.  I am not a "hater" by any means.  I am speaking as a concerned parent/bystander. 

 

I feel the fact that there are so many open credit lines, with such high balances, BUT a mediocre credit score (in the mid 600's)  - that original poster is actually doing himself a disservice.

 

His available credit is not typical of someone in that score range.  I think it will raise a lot of red flags when he does decide to purchase a home.

 

I know the original poster mentioned he did not plan on buying a home in the immediate future, but I believe he should reconsider.  Especially since he has a house hold income over $140,000/year.  That is almost 3X greater than the typical American household.

 

Real estate is the #1 way the average Joe becomes a millionaire.  It was true before the housing market crashed, and it is still true now. 

 

For 99% of us on this forum, buying a home will be the single largest purchase we will make in our lives.  I believe most members' ultimate goal is to get a high FICO score so they can obtain the best mortgage rate and highest limit possible.  I think rewards are secondary to mortgage when it comes to people's ultimate goal. Those that focus on rewards, most likely already have their own home too.

 

What I am trying to say is, increasing your credit limits is an illusion.  You are not actually increasing your networth.  You are increasing your net risk.

 

If you want to increase your networth, buy a house.  I know the housing market crashed in 2006 and ruined a lot people's lives.  But houses are still one of the best investments one can make. 

 

Think about it this way.  Every time you pay rent, you will never see that money again.  In fact, your rent next year might go up every year because of inflation.

 

But someone who pays their mortgage, builds a little bit more home equity everytime they pay their mortgage loan.  And if you were smart enough to get a fixed rate at a low interest rate, you are shielded against inflation.

 

  

 

 


Whle I agree with most of your posts I don't believe real estate is a "investment" if you have to finance it.  Maybe if you are finanacing it for 10 years max with a extremly low interest rate, but for the average person that is paying 3-4% over 30 years I believe there is anyway the property values will rise fast enough to account for the interest/taxes/insurance you would pay to own that property.  For example if you financed 200k on a mortgage at 3.5% for 30 years you would pay 123,312.18 in interest over the course of your mortgage. Figure in 1800 per year for personal property taxes (my home state) and 1K a year for home owners and you will pay an additional 84k which puts you're total paid up to 407,312.18.

 

Now this price is just you're total paid for the property, this doesn't include any maintace cost like a new roof after 20 years or new flooring every 10 years.  It's hard for me to believe that any average property would more than double in value over the course of 30 years.

 

my for example lets figure that you put that money (900 house payment + 150 taxes insurance) into just a 1% APR savings account after 30 years you would have 440,610.98, now lets say that savings account earns 2% you're at 517,363.48.

 

I'm sorry I don't believe sitting on real estate and having to finance it is a good investment.


Yeah, I'm glad my home didn't double in value in 12 years. It tripled. Now I am eying commercial property that I currently rent for my business. If I make the purchase (20 year note) the other 2 tenants will pay the mortgage in full as well as insurance and I will be able to operate rent free for 20 years. In the end I will own a property that I can sell to retire very comfortably. The vacancy rate of commercial property here is almost nill so I doubt I will ever sweat unrented space for very long.  

 

As long as you purchase a properly valued home in a good market it's a great investment. Commercial real estate can be even better. 

 

And as another poster pointed out you have to live somewhere...

Valued Contributor
ryanbush
Posts: 1,293
Registered: ‎08-19-2012

Re: GECRB has no max limit!!!


acleynes wrote:

^ You have to live somewhere.

 

I doubt most people live rent free.  And the majority of Americans do not pay for their homes in cash.

 

You are looking at a mortgage payment as if it were funds you can invest elsewhere. I am talking about mortage as funds you are likely to pay out of pocket regardless.

 

Rent = zero net gain

 

Mortgage = home equity

 

Also, what other instance can you get a $200,000 loan at 3.5% interest with a 650 credit score???

 

$200,000 home at 2% appreciation for 30 years = $362,272.32

 

a $162,272.32 profit + you get to keep the home.

 

Or you can pay rent for 30 years and get $0.00

 

For the vast majority of Americans who can not afford to pay lump sum for their homes, owning a home is a very sound investment.


You're math is flawed just a little, you would actually be about 50 grand in the hole because you would have paid over 400k for that house that is worth 362K

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Valued Contributor
ryanbush
Posts: 1,293
Registered: ‎08-19-2012

Re: GECRB has no max limit!!!


scenery_guy wrote:

ryanbush wrote:

acleynes wrote:

^ To the post above.

 

I don't want to rain on anyone's parade or anything.  I am not a "hater" by any means.  I am speaking as a concerned parent/bystander. 

 

I feel the fact that there are so many open credit lines, with such high balances, BUT a mediocre credit score (in the mid 600's)  - that original poster is actually doing himself a disservice.

 

His available credit is not typical of someone in that score range.  I think it will raise a lot of red flags when he does decide to purchase a home.

 

I know the original poster mentioned he did not plan on buying a home in the immediate future, but I believe he should reconsider.  Especially since he has a house hold income over $140,000/year.  That is almost 3X greater than the typical American household.

 

Real estate is the #1 way the average Joe becomes a millionaire.  It was true before the housing market crashed, and it is still true now. 

 

For 99% of us on this forum, buying a home will be the single largest purchase we will make in our lives.  I believe most members' ultimate goal is to get a high FICO score so they can obtain the best mortgage rate and highest limit possible.  I think rewards are secondary to mortgage when it comes to people's ultimate goal. Those that focus on rewards, most likely already have their own home too.

 

What I am trying to say is, increasing your credit limits is an illusion.  You are not actually increasing your networth.  You are increasing your net risk.

 

If you want to increase your networth, buy a house.  I know the housing market crashed in 2006 and ruined a lot people's lives.  But houses are still one of the best investments one can make. 

 

Think about it this way.  Every time you pay rent, you will never see that money again.  In fact, your rent next year might go up every year because of inflation.

 

But someone who pays their mortgage, builds a little bit more home equity everytime they pay their mortgage loan.  And if you were smart enough to get a fixed rate at a low interest rate, you are shielded against inflation.

 

  

 

 


Whle I agree with most of your posts I don't believe real estate is a "investment" if you have to finance it.  Maybe if you are finanacing it for 10 years max with a extremly low interest rate, but for the average person that is paying 3-4% over 30 years I believe there is anyway the property values will rise fast enough to account for the interest/taxes/insurance you would pay to own that property.  For example if you financed 200k on a mortgage at 3.5% for 30 years you would pay 123,312.18 in interest over the course of your mortgage. Figure in 1800 per year for personal property taxes (my home state) and 1K a year for home owners and you will pay an additional 84k which puts you're total paid up to 407,312.18.

 

Now this price is just you're total paid for the property, this doesn't include any maintace cost like a new roof after 20 years or new flooring every 10 years.  It's hard for me to believe that any average property would more than double in value over the course of 30 years.

 

my for example lets figure that you put that money (900 house payment + 150 taxes insurance) into just a 1% APR savings account after 30 years you would have 440,610.98, now lets say that savings account earns 2% you're at 517,363.48.

 

I'm sorry I don't believe sitting on real estate and having to finance it is a good investment.


Yeah, I'm glad my home didn't double in value in 12 years. It tripled. Now I am eying commercial property that I currently rent for my business. If I make the purchase (20 year note) the other 2 tenants will pay the mortgage in full as well as insurance and I will be able to operate rent free for 20 years. In the end I will own a property that I can sell to retire very comfortably. The vacancy rate of commercial property here is almost nill so I doubt I will ever sweat unrented space for very long.  

 

As long as you purchase a properly valued home in a good market it's a great investment. Commercial real estate can be even better. 

 

And as another poster pointed out you have to live somewhere...


I'm not saying that you're house value didn't triple in the last 12 years, it might very well have but that is not the norm and only happens in very isolated areas.  Most home values are down over the last 10 years

 

Commercial property is a whole other scenario, yes it can be very lucrative.

 

 

Yes I do have to live somewhere, but how many people live in the same place for 30 years? I'm just pointing out that a house is a place you live not an investment.  at least not in this economy/market

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Established Contributor
scenery_guy
Posts: 952
Registered: ‎07-24-2012

Re: GECRB has no max limit!!!


ryanbush wrote:

scenery_guy wrote:

ryanbush wrote:

acleynes wrote:

^ To the post above.

 

I don't want to rain on anyone's parade or anything.  I am not a "hater" by any means.  I am speaking as a concerned parent/bystander. 

 

I feel the fact that there are so many open credit lines, with such high balances, BUT a mediocre credit score (in the mid 600's)  - that original poster is actually doing himself a disservice.

 

His available credit is not typical of someone in that score range.  I think it will raise a lot of red flags when he does decide to purchase a home.

 

I know the original poster mentioned he did not plan on buying a home in the immediate future, but I believe he should reconsider.  Especially since he has a house hold income over $140,000/year.  That is almost 3X greater than the typical American household.

 

Real estate is the #1 way the average Joe becomes a millionaire.  It was true before the housing market crashed, and it is still true now. 

 

For 99% of us on this forum, buying a home will be the single largest purchase we will make in our lives.  I believe most members' ultimate goal is to get a high FICO score so they can obtain the best mortgage rate and highest limit possible.  I think rewards are secondary to mortgage when it comes to people's ultimate goal. Those that focus on rewards, most likely already have their own home too.

 

What I am trying to say is, increasing your credit limits is an illusion.  You are not actually increasing your networth.  You are increasing your net risk.

 

If you want to increase your networth, buy a house.  I know the housing market crashed in 2006 and ruined a lot people's lives.  But houses are still one of the best investments one can make. 

 

Think about it this way.  Every time you pay rent, you will never see that money again.  In fact, your rent next year might go up every year because of inflation.

 

But someone who pays their mortgage, builds a little bit more home equity everytime they pay their mortgage loan.  And if you were smart enough to get a fixed rate at a low interest rate, you are shielded against inflation.

 

  

 

 


Whle I agree with most of your posts I don't believe real estate is a "investment" if you have to finance it.  Maybe if you are finanacing it for 10 years max with a extremly low interest rate, but for the average person that is paying 3-4% over 30 years I believe there is anyway the property values will rise fast enough to account for the interest/taxes/insurance you would pay to own that property.  For example if you financed 200k on a mortgage at 3.5% for 30 years you would pay 123,312.18 in interest over the course of your mortgage. Figure in 1800 per year for personal property taxes (my home state) and 1K a year for home owners and you will pay an additional 84k which puts you're total paid up to 407,312.18.

 

Now this price is just you're total paid for the property, this doesn't include any maintace cost like a new roof after 20 years or new flooring every 10 years.  It's hard for me to believe that any average property would more than double in value over the course of 30 years.

 

my for example lets figure that you put that money (900 house payment + 150 taxes insurance) into just a 1% APR savings account after 30 years you would have 440,610.98, now lets say that savings account earns 2% you're at 517,363.48.

 

I'm sorry I don't believe sitting on real estate and having to finance it is a good investment.


Yeah, I'm glad my home didn't double in value in 12 years. It tripled. Now I am eying commercial property that I currently rent for my business. If I make the purchase (20 year note) the other 2 tenants will pay the mortgage in full as well as insurance and I will be able to operate rent free for 20 years. In the end I will own a property that I can sell to retire very comfortably. The vacancy rate of commercial property here is almost nill so I doubt I will ever sweat unrented space for very long.  

 

As long as you purchase a properly valued home in a good market it's a great investment. Commercial real estate can be even better. 

 

And as another poster pointed out you have to live somewhere...


I'm not saying that you're house value didn't triple in the last 12 years, it might very well have but that is not the norm and only happens in very isolated areas.  Most home values are down over the last 10 years

 

Commercial property is a whole other scenario, yes it can be very lucrative.

 

 

Yes I do have to live somewhere, but how many people live in the same place for 30 years? I'm just pointing out that a house is a place you live not an investment.  at least not in this economy/market


My results don't represent the entire market for sure. It's all about planning and research. I bought an old historic building in very bad shape in an up and coming area. Restored it myself out of pocket and made it thru the housing crash well ahead of neighbors who did the same but financed the restoration with expensive vehicle driving contractors. I still have insane equity in the place and they are evn or underwater. 

A house can be a great investment as long as you approach it like one. People in theory should treat it as an investment first and a domicile second. I feel I got a free place to live out of mine - and I still live there. In the end the math should indicate those results. But my plan called for 25+ years in this house, something you don't advocate. It can be done. Also some of us actually want to stay in place that long and if you can see that up front (and live with it) that helps. 

 

So YMMV just like with credit cards...


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