topic Re: Need some advice. in General Credit Topics

Need some advice.

Anonymous — Tue, 28 Oct 2014 12:44:16 GMT

So I need to purchase some furniture and I don't want to dip into my savings. I'm looking to get a personal lone of 750 - 1k. I spoke with my CU, they offer a personal loan, 18mo @ 2.99%. My other options is a secured CD loan, 18mo @ 4% with no credit pull. Both report to the big 3. I currently have no open or recent installment loans so I'm hoping this will help build my credit, but I know my AAoA will take a hit. I'm going to use my credit card to make the purchase, get the 1% cash back and use the loan to pay off the bal. Also I'm hoping to get a mortgage within the next few months. Is this even a good idea? I only have about 2-4 inq On each report and a fairly thick file.

Which option is the best?

Re: Need some advice.

takeshi74 — Tue, 28 Oct 2014 12:58:44 GMT

@Anonymous wrote:
Also I'm hoping to get a mortgage within the next few months. Is this even a good idea?

Given that the standard advice is no new credit for 6 months to 1 year prior to a mortgage....

Re: Need some advice.

RobertEG — Wed, 29 Oct 2014 06:17:01 GMT

It seems as if the purchase is a want as opposed to a need.

I would wait until after the mortgage is settled.

Re: Need some advice.

Berk — Wed, 29 Oct 2014 14:51:23 GMT

@RobertEG wrote:
It seems as if the purchase is a want as opposed to a need.
I would wait until after the mortgage is settled.

Yes, exactly! If you really need furniture go to yard sales, Goodwill, friends who are redecorating, Craigslist, etc. I rarely buy new furniture due to the cost. Used works for me just fine and it isn't so heart stopping when someone guns grape juice all over the sofa. Same reason I have never purchased a new vehicle.

Re: Need some advice.

Anonymous — Wed, 29 Oct 2014 20:47:17 GMT

Thanks for the advice.

Maybe I could have phrased my question better. I used the term need pretty loosely, yes I known its not necessarily. I was more concerned as to what effect a small loan would have on my chances of getting a mortgage vs the positive effect it would have on my credit.
Trust me I'm cheap all of my furniture is second hand. As far as cars go, my parents only bought used, they threw away so much money getting them fixed, only to get stranded some place. I didn't want to go that route, but everyone has different experiences. I like new cars, run clean and little maintenance.

DTI is under 4%, I think I more on beer every month. is it any new debt or only when you reach a certain threshold that it becomes an issue? To me I can't see why banks would stress over such a small amount, but its their money. I have 13 years of positive history, just no open installment loans was just hoping to gain a few points before pulling the trigger on a mortgage.

If all else it one less thing I have to move, lo

Re: Need some advice.

Anonymous — Wed, 29 Oct 2014 20:50:36 GMT

Sorry for the grammatical errors, big thumbs small phone.