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Established Contributor
Posts: 513
Registered: ‎04-03-2007
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Re: Pros and Cons of CL Increases...

[ Edited ]

MsDonesha wrote:

 

that's what i was thinkin about doing, if i could get that large of an increase......although, i will add that card #4's APR is only 9.9%.....BoA's is 10% so basically even and not an issue when deciding on whether or not to transfer that 6K balance. my income is 65K and one thing i left out (oops) that may be of importance is that this is a joint account with my father....


First ask BoA if it can give you a 12 month promo rate of between 0% & 3.99% for a $6,000 BT. Ask for a BT fee cap of $75. Then ask for a CLI to $10,000-$12,000 as a total credit limit. Because your father will also be  on the hook for the $6,000 you might get the deal.

 

You do realize that your father's credit score will suffer somewhat for utilization. You do know that doing an Egyptian dance right before applying for a mortgage is a little risky. I myself would simply pay $3,000 of the balance on card #4. Then again I wouldn't apply for a mortgage If I had any debt at all. I would wait until I could pay off all revolving debt. 

 

I wish you well no matter what you decide to do.

Message Edited by CreditAble on 03-24-2009 10:18 AM
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txjohn
Posts: 4,214
Registered: ‎09-12-2008
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Re: Pros and Cons of CL Increases...

Is this a JOINT ACCOUNT, or are you an AUTHORIZED USER?  What does your CR "Responsibility" line say for this trade line?  There is a difference.  If you are only AU, then your income and credit is not a factor in any decision and you may not even be eligible to do a Balance Transfer from you personal card to the AU card.

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Contributor
MsDonesha
Posts: 103
Registered: ‎10-04-2007
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Re: Pros and Cons of CL Increases...

CreditAble -- Thanks.  All of the possibilities of what could happen are making me shy away a little from doing ANYTHING until I buy my home. With the CLI I would have ZERO intention of using it.  I haven't used the BoA card once since the end of 2006...

 

txjohn -- I'm aware of the difference; it's JOINT. Although now that it's at a zero balance dad is thinking about removing his name off of the account altogether since he doesn't use it.  I'm advising him against it as it's his first major credit card also and will drastically lower his "length" of credit history without it....

Established Contributor
Posts: 513
Registered: ‎04-03-2007
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Re: Pros and Cons of CL Increases...


MsDonesha wrote:

 I haven't used the BoA card once since the end of 2006...

 


Use the card immediately for one ore two hundred dollars, let the statement drop so the balance shows in your credit files. Once the balance reports PIF before the next statement drops. You can then sock drawer the card until you obtain your mortgage.

 

You might get a small FICO ding until the next statement reports a $0 balance. On the other hand you might get a FICO bump by using an inactive card especially if the CL is not being factored into your utilization.

 

You may not at present be receiving the full value of the BoA card for FICO scorning since it might fall into an "Inactive" category. The card might also be in danger of being closed for inactivity.

 

Once you use the card, BoA might even offer you some kind of "Luv" to use the card some more.:smileywink:  

 

 

 


MsDonesha wrote:

 it's JOINT. Although now that it's at a zero balance dad is thinking about removing his name off of the account altogether since he doesn't use it.  I'm advising him against it as it's his first major credit card also and will drastically lower his "length" of credit history without it....


 

 Keep in mind that Bank of America is one of the few banks which will allow a (primary) joint holder to remove himself from a credit card account without closing it. Of course your credit profile (soft pull) would have to be approved by BoA to be worthy enough to assume sole responsibility for the account. I wouldn't take that step until your other balances are substantially paid down or off. Although BoA probably won't pull a hard inquiry for the conversion, anything is possible.  Definitely don't rock that boat until after obtaining the mortgage.

 

If you decide to do the sole responsibility conversion in the future, you may simply add your father as an AU afterwards. Taking that step would allow you to add or remove him from the account as his credit needs might change even later in life.

 

It you are going to avoid asking for CLIs until you get the mortgage, can you find an extra $3,000 to pay on card #4? Perhaps a family member might provide a 6-12 month term loan? After 6 months of a mortgage reporting and paying down your credit card balances, you might get a decent CLI and low teaser rate on the BoA card.



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