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New Contributor
acleynes
Posts: 66
Registered: ‎10-30-2011
0

Re: GECRB has no max limit!!!

My home is in Alaska.  The housing bubble burst in 2006.  Most homes in the lower 48 states are still about 33% less in value then they were in 2006. Not in Alaska though.

 

Before 2006, the price of homes in Anchorage, Alaska was rising at an annual rate of about 8-9%. After the housing bubble burst, the price of homes in Anchorage, Alaska still went up!!! Instead of an annual increase of about 8-9%, the price of homes around Anchorage, Alaska went up only 1-2% per year. Even in a recession, the price of homes in Anchorage, Alaska went up. 

 

The price of my home in Anchorage Alaska area went up 4% last year.  My mortgage is $1,800 and I rent out two rooms for $600 each. 

 

My home went from $300,000 to $312,000 in value.  Plus I rented out two rooms for $12,000.  So I made $12,000 in equity and $12,000 in cash (not even including the equity from paying down my mortgage).

 

Anchorage, Alaska is a city way, way, way out there.  And I know it is not a fair representation to most housing markets in the lower 48. 

 

Even if I do not live in my house for 30 years, I can still rent out the home for a profit.  My mortgage payment is fixed and will be 9 out of 10 times, will always be lower than what I can reasonably charge for rent my home.

 

So in practice, I can buy a home with a mortgage, rent out he home for more than the monthly mortgage payment, and make money off the bank's money and of the rise in the home's value.

 

Also, I may have paid $400,000 for a home that will only be worth $350,000 in 30 years.  But compared to a person who just rented for 30 years, I am $350,000 richer.  For the convenience of being able to paint my house any color, add shelves to any wall I wanted to, and make any other home improvements I feel like, and not have to worry about a landlord performing an inspection every year, I think a $50,000 "loss" is worth it.

 

 

 

 

 

 


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


Valued Contributor
FinStar
Posts: 5,156
Registered: ‎10-21-2012
0

Re: GECRB has no max limit!!!


acleynes wrote:

My home is in Alaska.  The housing bubble burst in 2006.  Most homes in the lower 48 states are still about 33% less in value then they were in 2006. Not in Alaska though.

 

Before 2006, the price of homes in Anchorage, Alaska was rising at an annual rate of about 8-9%. After the housing bubble burst, the price of homes in Anchorage, Alaska still went up!!! Instead of an annual increase of about 8-9%, the price of homes around Anchorage, Alaska went up only 1-2% per year. Even in a recession, the price of homes in Anchorage, Alaska went up. 

 

The price of my home in Anchorage Alaska area went up 4% last year.  My mortgage is $1,800 and I rent out two rooms for $600 each. 

 

My home went from $300,000 to $312,000 in value.  Plus I rented out two rooms for $12,000.  So I made $12,000 in equity and $12,000 in cash (not even including the equity from paying down my mortgage).

 

Anchorage, Alaska is a city way, way, way out there.  And I know it is not a fair representation to most housing markets in the lower 48. 

 

Even if I do not live in my house for 30 years, I can still rent out the home for a profit.  My mortgage payment is fixed and will be 9 out of 10 times, will always be lower than what I can reasonably charge for rent my home.

 

So in practice, I can buy a home with a mortgage, rent out he home for more than the monthly mortgage payment, and make money off the bank's money and of the rise in the home's value.

 

Also, I may have paid $400,000 for a home that will only be worth $350,000 in 30 years.  But compared to a person who just rented for 30 years, I am $350,000 richer.  For the convenience of being able to paint my house any color, add shelves to any wall I wanted to, and make any other home improvements I feel like, and not have to worry about a landlord performing an inspection every year, I think a $50,000 "loss" is worth it.

 

 

 

 

 

 


+1 

Senior Contributor
youngandcreditwrthy
Posts: 6,199
Registered: ‎08-16-2012
0

Re: GECRB has no max limit!!!

Interesting info everyone!
I'd buy real estate to rent it and get the tax benefit from it...
Also, I'd prob rent a condo/apartment.
I simply do not like the idea of having a cash-flow draining home to take care of.
I can build wealth through varying investments which would not suck cash out of me. Lol

Liquidity is my number one concern financially speaking !!

:-)
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
Dustink
Posts: 2,980
Registered: ‎10-02-2012
0

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 have as much credit as you (no GE for me) but I have a bunch of new accounts as well. Lender for an auto loan didn't care at all. My scores are about the same as yours. Got approved for 0%. They didn't screw me on the deal to get me the rate or anything like that either.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


     $14k          $8.5K          $7.5k          $7.5k         $6.5k             $6k             $5k            $5k             $5k              $5k           NPSL       @ 0%
Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012
0

Re: GECRB has no max limit!!!


FinStar wrote:

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.

Lenders only care if you default. At worst he will occasionally get declined a CLI ect, but no major problems.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


     $14k          $8.5K          $7.5k          $7.5k         $6.5k             $6k             $5k            $5k             $5k              $5k           NPSL       @ 0%
Valued Contributor
FinStar
Posts: 5,156
Registered: ‎10-21-2012
0

Re: GECRB has no max limit!!!


Dustink wrote:

FinStar wrote:

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.

Lenders only care if you default. At worst he will occasionally get declined a CLI ect, but no major problems.


Quite the contrary.  A variety of lenders continually review key risk factors that adverseley impacts or impair their loan portfolios.  So while all are default-sensitive, others do pay attention to how much new credit is aquired (inquiries/new open lines), utilization, credit score/FICO fluctuations, debt pyramiding, etc.  While the OP may coast well for a while, no further credit is extended and experiences no major problems at the moment, keep in mind the economy shifts constantly.  As such, lenders mitigate those risks proactively so if it were to tank again as it did back in 2008 (or other periods), then you can bet most folks who had the "privilege" of these extra/unused open lines of credit will be a sure bet that CLDs or closed lines will be in the works.  Citi, Chase, AMEX, Barclays, FNBO and GECRB are well-documented creditors who do adhere by these standards, even as of today.

Senior Contributor
youngandcreditwrthy
Posts: 6,199
Registered: ‎08-16-2012
0

Re: GECRB has no max limit!!!

That's good to know Dustink!:-)

I currently own a vehicle, but may want to lease a Mercedes after I graduate! I just wouldn't have any type of "auto score".
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
Established Member
NewYorkGuy
Posts: 111
Registered: ‎04-07-2011
0

Re: GECRB has no max limit!!!


youngandcreditwrthy wrote:
Interesting info everyone!
I'd buy real estate to rent it and get the tax benefit from it...
Also, I'd prob rent a condo/apartment.
I simply do not like the idea of having a cash-flow draining home to take care of.
I can build wealth through varying investments which would not suck cash out of me. Lol

Liquidity is my number one concern financially speaking !!

:-)

You and I think alike so much. Reading your posts is like reading something I would write. I am also in my 20s and I have an aggressive credit growth strategy. I love the idea of having large credit lines and liquidity at my fingertips. I started building my credit 3 years ago from scratch and today I have more than $115, 000 in total unsecured credit lines. I also have a couple GE cards and I've received massive CLIs through their backdoor number. Like you, I am conservative with how I use the credit lines available to me. I currently have <1% utility reporting with only 1 card showing a balance. My credit scores are in the 720s across the board (was higher but the new accounts took their toll). It's interesting that you would bring up the idea of investing in rental property as it's something I've been thinking about. Wow, we really do think alike! :smileytongue:

Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012
0

Re: GECRB has no max limit!!!



Quite the contrary.  A variety of lenders continually review key risk factors that adverseley impacts or impair their loan portfolios.  So while all are default-sensitive, others do pay attention to how much new credit is aquired (inquiries/new open lines), utilization, credit score/FICO fluctuations, debt pyramiding, etc.  While the OP may coast well for a while, no further credit is extended and experiences no major problems at the moment, keep in mind the economy shifts constantly.  As such, lenders mitigate those risks proactively so if it were to tank again as it did back in 2008 (or other periods), then you can bet most folks who had the "privilege" of these extra/unused open lines of credit will be a sure bet that CLDs or closed lines will be in the works.  Citi, Chase, AMEX, Barclays, FNBO and GECRB are well-documented creditors who do adhere by these standards, even as of today.


So, he gets a CLD and uses a different card? How is that a big deal?

 

Defaulting and getting charged with fraud for putting HHI on the app would be a big deal. As long as he never defaults, there will be no problems.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


     $14k          $8.5K          $7.5k          $7.5k         $6.5k             $6k             $5k            $5k             $5k              $5k           NPSL       @ 0%
Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012
0

Re: GECRB has no max limit!!!


youngandcreditwrthy wrote:
That's good to know Dustink!:-)

I currently own a vehicle, but may want to lease a Mercedes after I graduate! I just wouldn't have any type of "auto score".

I didn't have an auto score either, but apparently I still had a score that was sufficient. 

 

I don't necessary advise leasing.

 

You can negotiate such a good deal on a new purchase, that leasing really doesn't make much sense. For example, you lease a $40k vehicle (referencing the figures for a g37x) and get charged for $8k for the future value of $32k upon lease return. It is likely you can negotiate a purchase price of $32k on the new car, then trade in your current vehicle put down some cash and end up with some nice equity. Get a low interest loan and make large payments. You will have the car paid off before your lease would have even ended. Plus you won't get charged for inevitable door dings ect. If you want a new car again in a few years, negotiate well again and be in great shape the next time around. Will end up cheaper than leasing.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


     $14k          $8.5K          $7.5k          $7.5k         $6.5k             $6k             $5k            $5k             $5k              $5k           NPSL       @ 0%

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