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Valued Contributor
Posts: 1,320
Registered: ‎04-18-2009
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Would this be a good idea to increase CL and build more positive TL?

buy a car in December. Get bonus EOY, prolly the last day of the year, could be  a little sooner.. Need car Dec 12th or thereabout. Got a new Visa with 4K limit. have not used it yet, very new, not even reporting yet.

 

Since I will get the l bonus which should far exceed my down payment, why not throw the down payment on the card (don't even know if they accept a CC as a down payment, but anything is possible) , PIF before it hits billing statement? that way at least it will appear that I can "handle" that credit limit. Maybe I'll even get more, a cl increase!!...

 

i don't know.

 

I do know I would never carry a stupid balance on that card at a higher interest rate, I think it's like twenty percent.

 

this is a target visa btw.

 

thanks for any advice/input....

 

 

 


Starting Score: 682 EQ, 663 TU
Current Score: 687 EQ - 705 TU on 7/18/10
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Established Contributor
Posts: 1,013
Registered: ‎05-14-2008
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Re: Would this be a good idea to increase CL and build more positive TL?

Most dealers will let you put a maximum of $1k to $1.5k on a card as a DP.  If you have the money to pay it off before it is due there isn't much downside.  Whether it leads to a CLI remains to be seen.
Valued Contributor
Posts: 1,320
Registered: ‎04-18-2009
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Re: Would this be a good idea to increase CL and build more positive TL?

Thanks Watchmann for your response. there isn't much downside b/c I will PIF - so i'm floating the money for only two weeksI thought people with their Amex Black Cards (Centurion) could buy cars on that card? not like I have one...lmao...target visa...lmao..a far cry from the coveted Centurion card...

Starting Score: 682 EQ, 663 TU
Current Score: 687 EQ - 705 TU on 7/18/10
Goal Score: 700 + both EQ and TU


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Moderator Emerita
Posts: 28,095
Registered: ‎04-01-2007
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Re: Would this be a good idea to increase CL and build more positive TL?

Dealers like to put these restrictions in (max $1K - $1.5K as Watchmann said), but according to their agreement with Visa/MC, they're not supposed to restrict the figure. In fact, USAA has an article going on its website encouraging members to put the entire amount of the car purchase on their CC's, if it's with a USAA-approved dealer.

Call your lender, or better still, call Visa and ask if it's OK for the dealer to put a limit on how much you can charge. If they can't, then I'd say put the whole down payment on the plastic and PIF if immediately. Pay attention to your statement dates, so that you have plenty of time for your payment to post. You don't want your card to report at 100%.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Contributor
Posts: 2,385
Registered: ‎09-10-2007
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Re: Would this be a good idea to increase CL and build more positive TL?

[ Edited ]

Merchant fees are why dealers will limit the amount they will accept for a downpayment.  However I have never seen a limitation for a repair bill so the 2 are 'at odds'.

 

Even though the visa/mc says no minimum and would prefer no maximum - when the merchant submits an application they can set the parameters of their sales/charges - and as long as this was done there is no breach of the merchant's agreement with mastercard/visa - so technically there is no foul on the merchant's part.

Message Edited by Lady_Scarlet on 10-19-2009 10:24 PM
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Valued Contributor
Posts: 1,320
Registered: ‎04-18-2009
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Re: Would this be a good idea to increase CL and build more positive TL?

Thanks Hauling, I will search that USAA article...interesting.

 

I put a call into the guy at the dealership,  bascially once my bonus money gets despoited, run to the store with a four thousand dollar check in hand...pif!! pif!!  would never want 100 percent posting, but after I get the car, i can't say that I will be all that "fixated" on my score. I'll always care, but this is a true fixation and the clock is ticking....i need the score for the auto loan.

 

since i have not gone through one billing statement yet or even the addition of the tl, it's hard for me to determine when the report to the bureaus. although I could ask. Sometiems when I ask these types of questions to the person that picks up the phone, they don't know....


Starting Score: 682 EQ, 663 TU
Current Score: 687 EQ - 705 TU on 7/18/10
Goal Score: 700 + both EQ and TU


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Valued Contributor
Posts: 1,320
Registered: ‎04-18-2009
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Re: Would this be a good idea to increase CL and build more positive TL?

FYI: I just got a return call from the guy at the MB dealership. I can put up to $5K on a CC for a downpayment. not 1500....this is good news.

Starting Score: 682 EQ, 663 TU
Current Score: 687 EQ - 705 TU on 7/18/10
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Established Member
Posts: 35
Registered: ‎09-24-2009
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Re: Would this be a good idea to increase CL and build more positive TL?

[ Edited ]

"Merchant fees are why dealers will limit the amount they will accept for a downpayment.  However I have never seen a limitation for a repair bill so the 2 are 'at odds'."

 

Think commisions...  They probably take it directly out of commisions.

Message Edited by M4c on 10.20.2009 10:42 AM
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Senior Contributor
Posts: 4,923
Registered: ‎04-19-2009
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Re: Would this be a good idea to increase CL and build more positive TL?

Deducting CC merchant fees from commissions? I really doubt it. BTW, salespeople get commissions and service writers get incentive. It would apply to them both.
Senior Contributor
Posts: 4,923
Registered: ‎04-19-2009
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Re: Would this be a good idea to increase CL and build more positive TL?

Negotiate your purchase fully first - then reveal the source of your down payment. Any dealer worth his salt is going to adjust his numbers to compensate for the merchant fees if you give him a chance to do so.

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