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I closed on May 26th. I need some money for buying stuff for my house. I do not have one credit card but not enough money and dont want to kill with high utilization. Is it wise to instead get a personal Loan at DCU or somewhere and utilize that money .. then make monthly payments as opposed to apply for more credit cards and maintain? Anyone please advise. I just want to be financial responsible.
@Anonymous wrote:I closed on May 26th. I need some money for buying stuff for my house. I do not have one credit card but not enough money and dont want to kill with high utilization. Is it wise to instead get a personal Loan at DCU or somewhere and utilize that money .. then make monthly payments as opposed to apply for more credit cards and maintain? Anyone please advise. I just want to be financial responsible.
Hi! Congrats on your closing!!
are you saying you don't have any CCs? If so this is how I would do it:
Open 2-3 CCs and spread your UTI among them but do your best to keep each one at/under 29% and when time to pay if you can't do a "pay in full", pay at least 2x (or more) of min.
or
open a personal loan, that will report at 100% UTI and turn around and pay off asap (before you shop) 11%-21% and bring it (at least) under 79% for the smallest hit on UTI, then each month (or sooner) pay down another 10%-20% of balance
also at the same time
open 1 card and use only 25% of CL and pay at least 2x min bal
without knowing your disposable income and how much you can pay each month this is only a guess, but your scores are more then likely at this moment optimal because of closing on the house (they are usually at their best within 25-30 days of closing before new mortgage hits CRs)
Good Luck and Congrats again
It depends on your situation and future situations that may arise. If your concern is keeping your credit score up, utilize a personal loan.
If your concern is just about saving money, open a long term 0% credit card, or even a couple. The important thing to remember is that if you take the credit card route, it will definitely have a large impact on your credit score due to the ratios of utilizing a large balance on your limits. If you are going to be purchasing anything else in the next 12 months (Car, etc.) then a personal loan is probably going to be the way to go.
Thanks. Do I have to wait for certain number of days after closing to apply for personal loan? I closed on May26th.
@Anonymous wrote:Thanks. Do I have to wait for certain number of days after closing to apply for personal loan? I closed on May26th.
No.
Do you have any suggestion for good personal loan offering companies/bank? Heard Digital Credit Union was good in terms of service and quickness. Any other suggestions?
It seems like Sofi has some competitive rates. I don't have any experience with them though...