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Wrinkles - Choices, still need guidance

Valued Contributor

Wrinkles - Choices, still need guidance

This is a follow-up to the following discussion: http://ficoforums.myfico.com/t5/Credit-Cards/New-accounts-influence-on-cc-apps/m-p/1572470#M432629

 

I heard back from one contractor and waiting on another one, tomorrow, regarding my repairs.  I also heard back from my CU loan officer (if I need to get a LOC for home repairs from Hurricane Isaac).  The loan officer gave me the following info:

 

1. I am eligible for 10k unsecured credit limit total. (She has proof of income and I gave her my EQ score from here.)

2. I can split that limit however I choose between a revolving LOC and a MC.

3. LOC API 6%, MC 12.5%

4. As long as I open MC within 2 weeks of LOC it will be only 1 hard EQ pull.

 

While Im trying to hold off on apping till Nov., I may not have a choice depending on what I can do with the contractors and my home repairs.  Assuming that I cant hold off and I app now for CU products, what is the best way to handle this from 1. a purely credit scoring standpoint (Ignore interest rate difference between MC and LOC - I plan on paying off within 6 months); and 2. from a future app standpoint (I still want to app for ZYNC, NFCU and TU product this year).

 

Thanks for advice.

 

 

Duncan



Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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2 REPLIES
Valued Contributor

Re: Wrinkles - Choices, still need guidance

i would keep the majority even 90% of the 10k on the LOC, because its harder to get, credit cards are a dime a dozen and you may be overpaying at that price Smiley Very Happy  You could even run the expenses through your credit card ( for the rewards) and pay the bill with the funds from the LOC when the statement cuts. 

Cards: Chase Southwest 20k & CSR 10k & CSP 10k & Freedom 6.6k & Amtrak/Freedom 4.6k, FNBO DISC 25.1k Oregon Duck 5k, & AMEX BCP 15k & Hilton Surpass 7.5k & Delta Gold 6k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 10k, Paypal Extras MC 7.5k, CapOne Venture 15k, QS 2.5k, QS 750, Amazon 5.9k, Walmart 10k, Citi Simplicity 9k, Discover IT 16k and a nice stack of store cards.
Last APP/HP 5/15/2017 Marcus Loan. 30k
Valued Contributor

Re: Wrinkles - Choices, still need guidance

I was thinking 5k/5k.  I have two reasons for this.  To get higher CL cards in future the 5k CL on a CC seems to be a sweet spot with most cc companies and having a card with a 5k limit would help get better limits/cards in future.  Also, the LOC doesnt have a grace period where the CC does.  Putting charges on card would give me about 2 months interest free.

 

Problem is that until these balances are paid off my scores are going to tank (thank you high utilization).  I'm not sure what to do about apping for the cards I really wanted (Mainly the ZYNC).



Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

Take the FICO Fitness Challenge