credit cards for high utilization + auto loan

[creditwatcher2012]

Sorry for the late response, I going to continue paying my credit cards down and take your advice of once they are paid down to use one credit card for all my everyday"cash" purchase probably the chase freedom, and ill let my AAOA age, and let the inquires fall off........thanks again, I will continue to keep you guys posted on my payoff journey...and in regards to the down payment on the house, I haven't even started saving..... Call me crazy but I was thinking of getting somebody to rent my current house( I own it) And take a home equity for about 70k and their rent would cover the monthly payment, I would then use the 70k as a down payment on my Newhouse.... Does it sound like a bad idea?

[LS2982]

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@creditwatcher2012 wrote:

So I have verry high utilization I think in the 70's percentile, I am looking to open new cc's to help out with my current utili.... I have alot of inquires,

I recently applied and was approved for GECB WALMART 200.00 & GECB American Eagle 150.00, but was declined for GECB Lowes.... seams offle strange to me..

Income 92k annualy

Current CC's

Chase Freedom-4k/3400

Chase BP-1700/1400

Capital One No Hassle Rewards-500/390

Capital One-500/400

Orchard Bank- 400.00/300

Credit One-300/124.00

Target National Bank-200/0

Walmart GECB-200/0

American Eagle GECB-150/0

Barclay Financing Apple-1k/950.00

Merrick Bank-1k/996

creditline/percent used...

Also as an update, my plans are to somehow secure an auto loan by June, my last post I stated that I had extremely high utilization, and as you see I have been working on it, I am down to 70 something percent, I am just afraid of AA expecially on my apple financing becasue everymonth I make like a 200.00 payment but keep charging it up with differnt memberships, one of them being my fico....

Honest opinions please, do you think I will be subject to AA? I mean I have been paying my cc's down...

Ill tell you I will never get myself in a jam like this, with high utilization evert again..... also I have a 5k personal loan out recently opened a few months back...

Prior lated on auto loan with ford credit 21 late payments total....... I have 60 inquires on experian, 58 on equifax, and 24 on tr..... (all from auto loan denials when I had NO established credit).......over the past 12 months i have built credit and opend all my credit card accounts expecpt for 3 capital ones... my ? is do you think by June if I have a utilization of 10% I will be able to successfully obtain a 40k auto loan thru infiniti financials with 20% down, on a 52-55k car?

Thanks for al your help.....

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I think the last thing on your mind should be getting a new credit card.

You have plenty of credit that you haven't paid back yet. Focus on that and gardening your accounts and INQ's.

[enharu]

save up for a downpayment

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@creditwatcher2012 wrote:
Sorry for the late response, I going to continue paying my credit cards down and take your advice of once they are paid down to use one credit card for all my everyday"cash" purchase probably the chase freedom, and ill let my AAOA age, and let the inquires fall off........thanks again, I will continue to keep you guys posted on my payoff journey...and in regards to the down payment on the house, I haven't even started saving..... Call me crazy but I was thinking of getting somebody to rent my current house( I own it) And take a home equity for about 70k and their rent would cover the monthly payment, I would then use the 70k as a down payment on my Newhouse.... Does it sound like a bad idea?

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save up for a downpayment. it might take 6-12 more months, but it is worthwhile.

by refinancing your house for 70k, that 1 loan right there. and you're trying to use that loan to pay for your downpayment in order to create another loan.

banks are often very worried about actions like these, even though you technically already own the house ur financing for 70k. it might sound like a good idea to you, but if you look at it from the bank's perspective, you will be very worried. therefore, even if you do get a loan somehow by doing this, you're gonna get horrible interest rates. even 1% difference for a 100K house can add up to quite a bit of money over a 25 year loan.

I am not sure what you decided about your car situation, but you really shouldn't overextend yourself just because you want a luxury SUV that badly. If a 30K car is all you can afford and ideal for your current situation, get a 30K car. It might not have all the fancy features and engine you want, but its what's best for you right now. I want a ferrari now too, but should I put a 50k downpayment and finance 200k? My advice to you is to either wait it out until you can put a more substantial downpayment, or just get an entirely different car.

Debt is what you get yourself into when you have better utilization for that money (for example you can make 12% return on investment when the bank charges u 3% interests). It is not for you to get what you can't afford right now just because you want it so bad.

[E150GT]

I smell troll...

[creditwatcher2012]

That's what I am going to do for the car, I really don't want to buy a 30k ford explore for example when I really like the infinity jk, like I said I have 10kin a cd, hopefully after my credit cards are paid off and everything I wil be able to save more as a down payment for the car.......and in the near future I will be able to save more money for a new house--I will just have to settle for a less expensive house like moving forward said..... But thank for all the advice, and also I just checked yesterday after my credit card payment posted from last week, my utilization is now at 71% a little difference from 73% And E150GT I am not a troll, just trying to get financially on track

[enharu]

find out when your inquiries fall off (or at least get past 12 months). that will help quite a bit too

[jamesdwi]

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@creditwatcher2012 wrote:
That's what I am going to do for the car, I really don't want to buy a 30k ford explore for example when I really like the infinity jk, like I said I have 10kin a cd, hopefully after my credit cards are paid off and everything I wil be able to save more as a down payment for the car.......and in the near future I will be able to save more money for a new house--I will just have to settle for a less expensive house like moving forward said..... But thank for all the advice, and also I just checked yesterday after my credit card payment posted from last week, my utilization is now at 71% a little difference from 73% And E150GT I am not a troll, just trying to get financially on track

if your employment is secure, cash out the cd, take the money pay down all the credit cards, perhaps keep $1000 in savings. Sock drawer the cards, but one, put all the money you are not paying in credit card debt in a saving account or new CD. Yes all those zero percent interest deals are nice, but having that many maxed out cards will lead down a terrible road if you miss a payment, penalty rate on any card once the zero percent deal ends the card is almost useless. Its a life of PIF on the card or face 29% interest, and they may balance chase you down to 250 CL's on cards, so even if you PIF its still a useless card. After your INQ's fall off, and your UTL's are low, the cards will grow with time. If nothing bad happens during this time the creditors will forget about it in 3-6 months and start giving you CLI's. GE especially will love to give them out with slight usage of the card. My GE Sam's club card went from 800 to 4800 in one CLI after 7 months and my income is less than yours and my UTL is at 25% currently. 

[MrPickleton]

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@creditwatcher2012 wrote:
Sorry for the late response, I going to continue paying my credit cards down and take your advice of once they are paid down to use one credit card for all my everyday"cash" purchase probably the chase freedom, and ill let my AAOA age, and let the inquires fall off........thanks again, I will continue to keep you guys posted on my payoff journey...and in regards to the down payment on the house, I haven't even started saving..... Call me crazy but I was thinking of getting somebody to rent my current house( I own it) And take a home equity for about 70k and their rent would cover the monthly payment, I would then use the 70k as a down payment on my Newhouse.... Does it sound like a bad idea?

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No, no no no no!  If you can't afford the downpayment outright, then you cannot afford the house right now.  If you fall behind on your payments on your HELOC or even if it is just a Home Equity Loan, and fall behind on your mortgage for your 2nd home you can lose BOTH of your houses.  It is just not worth it.  I would put a house first and a car second.  In fact I don't really believe you can afford a brand new car right now, not even a 35 or 40k car.  You need to focus on the bigger picture which is your overall credit portfolio and your long term goals.  Plus the well being of your family

[creditwatcher2012]

Right I am going to wait a bit for the house, unfortunately the car has to be priority, my current car is a 2003 ford f250....not efficient and not good for a family of 6

[creditwatcher2012]

James dwi, I know I keep asking this, I guess I am looking for some reassurance......do you honestly think chase or Barclays for that matter will balance chase me, even thou I am not charging ANYTHING On the card, and am paying down each month----granite I am paying more than the minimum.......but on the Barclay card since their is a membership attached to it, it is always maxed out.....I am changing that this Monty for sure, I am going to make a payment of like 200.00