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How should I go about this?

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Anonymous
Not applicable

How should I go about this?

A little background, I have had a credit file since 1987 and have never had a late payment, I have never had any accounts in collections either. My transunion FICO is 729, and my Equifax has more inquiries so it's 701. My income is 31k.

 

 I currenty have 2 credit cards, one 5.99(V) and another 7.99(F). The 5.99 has a 4.5k limit and 2900 is being used. The 7.99 has a 4k limit and 3850Smiley Sad is being used.

 

I'd like to consolidate my debts to one card with 0% for 12 months in an attempt to have more availible credit to give me a better FICO score, and in turn a better mortage rate.I'd for this card to have atleast an 8k limit.

 8000

-2900

3850= 1250 leftover

 

Any cards you think would accept me? PS: I have 1 chase card, and do not want another by any means!

 

 

 

Thanks

 

Message Edited by wcnghj on 11-09-2008 01:28 PM
Message 1 of 12
11 REPLIES 11
Anonymous
Not applicable

Re: How should I go about this?

With your current utility over 90% on one card at 79% it will be hard to get approved for another card. For optimal score you want to be under 30% or 10%(better) but i would hold off to open a new card until you are at least around 50% overall. This maybe expedited by asking for a increase on your current cards to make your util go down. If you do get approved now it will likely be for a small limit which won't help much with your current situation.
Message 2 of 12
Anonymous
Not applicable

Re: How should I go about this?

I already asked Chase for an increase, and they denied me, I called to see if they had any preapproved increases for me and they said no.

 

The other card is a credit union card, maybe they would match the 5.99, and increase my limit if I agreed to transfer my other card to them.

 

 

Message 3 of 12
Anonymous
Not applicable

Re: How should I go about this?

Please do not be offended and don't take this as anything other than my personal opinion because I'm not an expert.. Im only telling you what I would do in your situation.

 

You're scores aren't bad right now and most likely since you don't have any baddies I'm assuming the only thing holding them where they are is your Utility and lack of credit mix.

 

The interest rates on your cards aren't that bad either. I know that a 0% BT would help you save money and make it easier to pay off your cards faster but you have to remember that credit score isn't the only determining factor when obtaining new credit.

 

This is the area where I'm not 100% sure of what Im saying but...

If you only have 2 cards and they both have CL under $5000 I would think that it might be difficult to get approved for a card that has both a 0% no fee BT AND an $8000 CL.

 

Since you are interested in maintaining/improving your FICO scores for the purpose of qualifying for a mortgage I would think that the only thing opening a new card and scooting the balances to it proves is that you are capable of scooting money around.

 

You also said that you make 31K.... I don't know your entire financial situation but it seems to me that you have plenty of money and  your best bet over all would be to cut back spending anywhere you can and focus on paying down your debt. This will in turn improve your UTL and bump your FICO score.

 

THEN you can work on the mortgage or obtaining higher CL cards or CLI on your current cards.

Message Edited by AmyBoo on 11-09-2008 03:53 PM
Message 4 of 12
Uniqua
Established Contributor

Re: How should I go about this?


@Anonymous wrote:

I already asked Chase for an increase, and they denied me, I called to see if they had any preapproved increases for me and they said no.

 

The other card is a credit union card, maybe they would match the 5.99, and increase my limit if I agreed to transfer my other card to them.

 

 


 

What do you mean by "transfer your other card to them?"  Aren't you already maxed out on the CC you already have with them?  Your util is very high at the moment.  I'm sure they're going to want you to get that down first before asking for a CLI.  But who knows, maybe they will.

Message Edited by Uniqua on 11-09-2008 04:55 PM
Message 5 of 12
Anonymous
Not applicable

Re: How should I go about this?

 

 

I guess I wasn't clear, I do have a mix of credit and am looking to sell my house,make a profit, pay off my debts and buy another.

 

I have the 2 credit cards mentioned above, 1 mortage with a 42k balance, a 4k home equity, and a car with 10k.

 

We have cut back across the board with things like:

*$20/month cable TV

*Not spending more than $75/month on gas

*Lowest minute cell plan

*Not turning heat above 67

*Only eating out once a week

*Slower internet plan

 

I had no idea util had an effect on your credit score until 6 months ago.Smiley Sad

 

 -------------------------------

"What do you mean by "transfer your other card to them?"  Aren't you already maxed out on the CC you already have with them?  Your util is very high at the moment.  I'm sure they're going to want you to get that down first before asking for a CLI.  But who knows, maybe they will."

 

I have a feeling they'd increase it, they gave me a 5k home equity when the card had 3500 on it.

 

Message Edited by wcnghj on 11-09-2008 02:06 PM
Message 6 of 12
Uniqua
Established Contributor

Re: How should I go about this?


@Anonymous wrote:

 

 

I guess I wasn't clear, I do have a mix of credit and am looking to sell my house,make a profit, pay off my debts and buy another.

 

I have the 2 credit cards mentioned above, 1 mortage with a 42k balance, a 4k home equity, and a car with 10k.

 

We have cut back across the board with things like:

*$20/month cable TV

*Not spending more than $75/month on gas

*Lowest minute cell plan

*Not turning heat above 67

*Only eating out once a week

*Slower internet plan

 

I had no idea util had an effect on your credit score until 6 months ago.Smiley Sad  JOIN THE CLUB!

 

 -------------------------------

"What do you mean by "transfer your other card to them?"  Aren't you already maxed out on the CC you already have with them?  Your util is very high at the moment.  I'm sure they're going to want you to get that down first before asking for a CLI.  But who knows, maybe they will."

 

I have a feeling they'd increase it, they gave me a 5k home equity when the card had 3500 on it.

 

Message Edited by wcnghj on 11-09-2008 02:06 PM

 

How soon are you looking to sell?  Perhaps you should wait until you have sold the house and paid off your debt.  I'm sure your scores will increase with low util, making it easier to obtain a smaller interest rate when purchasing a new home.  Then, apply for a prime CC (BofA, Citi, Discover). Just a suggestion.

Message 7 of 12
Anonymous
Not applicable

Re: How should I go about this?

The house has been on the market a steady 6 months, and a few people have looked at it.

 

Any idea if applying for a card with no annual fee, getting approved for 1k, shreading the card,etc.

 

Would that help my score at all?

Message 8 of 12
Anonymous
Not applicable

Re: How should I go about this?

I still have to say NO to applying to any new credit right now and just concentrating on paying down the debt to benifit your UTL.

 

Yes having another card even with $1k limit is going to help your UTL but it isn't going to help your situation.

 

If your house were to sell tommorow you are going to have to go buy a new one. If you go on a credit spree - regardless of whether you use the cards or not - thats going to effect the APR on your home purchase.

 

I'm sticking with: sit tight with what you have, work on paying down the balances...

 

You aren't making all of these financial decisions (including trying to sell your home at a profit to pay off other debts) JUST to increase your FICO score are you?

Message 9 of 12
Anonymous
Not applicable

Re: How should I go about this?

Nope, we just need a bigger house, we have been in our current one 10 years and we are quickly outgrowing it.
Message 10 of 12
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