Hi, I have just lowered my utilization to 27% for just this month. $5,000 0%BT in Bofa debt will show up in 3 days and $7,500 0%BT in Citi will show up in 16 days. My scores jumped 24 points since its under 30% util. this month. My TODAY scores show as EXP 740 and Transunion 746, dont know EQ but should be around the same. The scores will drop 20 to 25 points again if I dont increase my Total Credit Lines. I have today showing $21,000 in debt and $77,000 TCL. I see it as a GREAT opportunity to get $50,000 to $100,000 for my TCL so I can maintain de under 30% util. and the scores wont drop much.
PLEASE, any and all suggestions are welcomed as its urgent. IM willing to leave my 5 year gardening for this and want to do it as best as possible. These are my known options, please advice...
1. Amex - Currently preapproved for ALL their cards. This is a SP as I understand it and almost 100% I should take. I was thinking the Magnet for the 15 months apr but really just need the highest CL. My only Amex is at $9800 CL today.
2. Citi - Have 2 cards with $12000 and $8600 CL, I just got a marketing $15,000 loan offer yesterday. Been with them for 25 years so I amagine they would approve me for cards but not sure of highor low limits. Was thinking any of their BT cards though I just did a BT with them last month.
3. Chase - I have the CSP, Freedom and the Freedom Unlimites aswell. They balance chased me 4 years ago so my limits were lowered ALOT to $7000, $2,000 and $2,000. All 3 cards are showing me 0%BT till 11/2022 which I would love to take BUT it lets me just on my available balance of course, which combined is just $6500. Will Chase give me CLI to take advantage of their 0%BT offers? Would they raise my CLI on my 3 cards if I take just one HP? Would you just app on a new Chase card? Im 0/24 of course.
4. Discover - I have a good relation with them but I owe $9400 out of an $11500 CL cause of an old BT I took with them.
5. Any SP suggestions?
6. Any solid HP suggestions?
7. I was also thinking of joining Credit Unions that double dip as I heard Andrews, DCU, First Tech, NIH etc just not sure if it will take too long to join and then app aswell.
@WP2020 wrote:Questions...
1. Should I app spree now that I have much better scores to get $50,000 to $100,000 in new cards so my total $34,000 debt stays under 30% utilization?
I think you could see some good results from an App spree, just be aware if you are applying to any lenders that get spooked by opening multiple new accounts. I'm looking at you Chase
2. Should I just get a 0% BT card or 2 to get the rest of my $16,000 at 11% down to 0%
I always support paying as little interest as possible. I would look at some BT cards. I have been receiving offers from BoA for up to 18 months of 0% on BTs, may be a good option for you. FNBO Evergreen card is 12 months of 0% on bt and a 2% cash back card, so it is actually useful after the BT ends. FNBO also offers prequalification, but it isn't proven to b 100% reliable.
3. I REALLY want to take advantage of this current 27% utilization. Whats the best way to do that?
Now might be a good time to apply for any rewards cards you have had your eye on, also a good time to refinance any high interest debt you have.
4. I would also LOVE to get as much PLOC´as possible while remaining under 30% util. Or if I need to go over it, I dont mind. For example taka a $25,000 loan, but would want to cushion and raise my overall credit by as much as $50,000 to $100,000.
I don't have much experience with PLOCs, so no comment here.
5. Sould I then be looking for CU´s that double dip and will give credit cards and PLOC´s?
Absolutely. I would just caution applying for a card just because you can double dip, make sure it is a card that provides benefits that are actually helpful for you.
I would love to hear ANY and ALL suggestions, thanks in advance.
Good job on getting utilization down! I made some recommendations above. And good luck with your applications!
With 27% util, you're gonna have a hard time getting that much credit extended to you. Not to mention the HPs will work against you. Sorry, but lower scores are almost certainly an inevitable consequence of taking on that much more card debt.
What's driving the urgency to keep those scores?
A few details seem to be missing for us to help, @WP2020. Your signature is puzzling to me and almost contradictory.
Until 2016 – Fico8 805
2017 – Fico8 579
2020 - Fico 8 - EQ 706 TU 708 EX 714
100% payment history in 24 years.
No other Loans of any kind nor negative remarks.
What happened in 2017 to drop your scores if you have no late payments or derogatory remarks? If it was credit-seeking and you've been gardening for 5 years, the scores would have rebounded to previous levels. Has utilization been perpetually high for almost five years? Did you have some accounts closed or balance-chased by other than the Chase limits you mentioned?
I agree with above remarks from @FinStar and @MrDisco99.
For one, with debts reporting at $21K and not being paid down quickly, and unless income or assets are very high, the odds of any lender opening up the vault doors for you seems unlikely. While you may get approvals, the limits will be tempered by that debt, and debt-to-income ratios. Lenders don't care that you're on a 0% BT offer or that you have a "plan" to pay it off. To them, debt is debt. And if you've been carrying heavier debt for most or all of that five years, the balances will show up on credit reports and may raise concern about your ability to pay.
Yes, I agree that either AMEX or the credit unions you mentioned might be more likely to approve since you've got BTs and a history with other large national lenders. Besides the ones you mentioned, I might suggest Navy Federal. But a first card with them is probably not going to get you want you're looking for; you'll most likely need a second card and some history to reach the higher credit limits.
IMO, figuring out the best way to quickly and most economically pay down that debt is a more important investment of time and effort rather than a concern over a short-term FICO drop for utilization rates. While you've been gardening for five years (which ordinarily would be a "GREAT" time to seek new accounts), I think the debt/BT/utilization issue hampers any realistic expectation of new $50K+ credit limits.
