03-24-2012 02:54 PM
What makes the most sense for building my credit and freeing up some cash?
Just bought a house less than 1yr ago. I have 1 CC(9% - APR / 55% UTL) and 1 personal loan (15% APR / 75% UTL- that is co-signed). I want to take out a personal loan (only me as the applicant) so I can get the co-signer off the personal loan but I also want to request a CL increase on my CC from $4K - $7500 (both credit card and personal loan is from same bank). My DTI is 13% right now, would my bank be more inclined to lend on both or just one of them......I am looking for options on the best way of approach.......ty,
03-24-2012 03:36 PM
Sounds kinda like you are looking to go deeper in debt rather than "freeing up some cash......"
Regardless, in my opinion, you would get more bang for the FICO buck by adding a second revolving acct that by increasing the CL on your single, existing revolving account.
FICO likes to see the presence of multiple revolving. Increased CL may help FICO score if you dont use that available credit limit, but not if you are using it for the purpose of increasing debt while maintaining the same % util.
03-24-2012 06:45 PM
Choose the option that doesn't put you into any further debt.
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