Long time Lurker first time Poster with Question? Not sure which Forum

[Anonymous]

Thanks for the reply!  Agreed maybe its better to just pay off the CC debt with the cash.  When would be a good time to apply for other cards or limit increases on my exsisting ones?  

[Anonymous]

The best time to apply for new CCs and CLIs is when your utilization is as low as it's going to get for a while.  I don't know when that is.

By "utilization" I mean revolving utilization, and another approach is to clear out all the cards via a cash payoff or consolidation installment loan, and thus make your revolving utilization a non-issue.

If you apply with high utilization, you run the risk of denials and low CLs.

Also, you said your BK is showing on EX, and you can do some research about which report lenders pull for CLIs and new CCs, and how they deal with utilization, and in that way make a realistic assessment of your chances.

[Anonymous]

Thank you for the feedback!  Great advice

[Anonymous]

Thanks Credit!!  That is good advice.  To get a low utilization should I move the remaining amount to an Installment loan?  Would that be a better option?  I just thought CC compaines would see it as a opportunity to have more credit to use, thus its really just shifting debt.

Again thanks for the advice.  Just was curious as to how FICO scored the greatest.

Chris H

[john398]

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@Creditaddict wrote:

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@Anonymous wrote:

Good point CreditAdd-  That way I could pay more down on the CC debt which would increase the scores.  Do we really need Installment loans showing on the credit files?  I have 7 revolving accounts and when I go to the MYFiCO analysis it says lack of Installment accounts.

I think I will just buy the car so that way I dont have to loan out more. 

Should I wait a while on asking for limit increases or applying for other cards then?  What should the total UTI be before applying?  25% or under?

Thanks,

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no you don't need an installment but I rather take out a low interest auto loan for 1-3% and pay credit cards off then pay 15-20%+ on credit cards and pay cash for auto.

I would wait 1 full statement after paying everything for all balances to update before applying for CLI and new cards.

i would for sure say under 25% would be best if not below 10

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+1 I got a auto  loan from PenFed at 2.99% I think its even lower now

[Creditaddict]

It would be just shifting debt if you bought nothing but moved your credit card debt to a personal loan (which depending on the rate would still be better idea)

but you are talking about paying cash for a car but leaving $20k in credit card debt.

I'm suggesting financing the car and paying off the $20k in credit card debt instead.

join DCU (during joining, they may even pre-qual you for auto loan and they have rates as low as .99%)

[indiolatino61]

Welcome to myFICO and the best of luck to you. I see you've already gotten some great advice!

[09Lexie]

OP,

I merged your two threads together to avoid posting duplicate posts across multiple boards.

In the future and to avoid confusion, please refrain from cross- posting.

Thank you!

Lexie

[Anonymous]

Thanks Lexie, sorry for the cross post.

Credit-  I will be joining DCU to see what they can do.  My credit card with the 20K limit has a 7.99 = Navy Fed Visa so I figured that was cheaper than a Installment loan.

Thanks to all the great advice.  I just wanted to see if I was on the right path.  

[Creditaddict]

Oh your in with Navy?!!
Go to them for auto loan!!!