Ideas to utilize top tier credit?

[andyaycw]

I'm open to suggestions on what I can do to use my current credit profile and FICO scores to improve my financial/credit situation - I currently can only think of a single possibility, which is to refi my auto loan from 2% down to 1.74%. This would save me $600 in interest charges over the life of the loan. Not much, but better than nothing. 

All 3 of my FICO scores are over 800, and I just recently realized that I haven't really utilized it to beef up my credit or finances. I've just been letting it sit. I feel as though I have been neglecting it, as if I had left $50,000 in a 0.01% APY savings account for years and years, slowly getting eaten away by inflation instead of selecting investments that will yield a larger return. 

I have a pretty strong credit profile - mortgage, auto loan, multiple credit cards with an avg and median credit line of $17,000, 1% utillization, no derogs, 10 yr history, 5 year average age, 0 inquiries in prior 12 months, and newest account is 15 months (the auto loan).

I used to periodically request credit line increases, but I think my current limits are more than enough. I don't mind taking the hit for new credit inquiries and new accounts (e.g. if I decided to do the auto loan refi) as I don't anticipate needing to apply for credit any time in the next 12-24 months, and even if something did come up, I'm confident I have a strong enough cushion with my FICO scores that it would not drop my scores by any significant margin. 

Any suggestions would be appreciated, thanks!

[Anonymous]

Based on your post, I'd just refinance the auto loan, save the $600 and just be content since you don't actually need new credit.  I guess my question to you is this a "need or want"?.

If you don't need credit, then I strongly encourage you not to apply..

[andyaycw]

It's 100% a "want"  I just feel like it would be a missed opportunity to save some hard-earned cash if I just sit back and did nothing, and wasn't sure if I was overlooking any other avenues to save or take advantage of

[SouthJamaica]

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@andyaycw wrote:

I'm open to suggestions on what I can do to use my current credit profile and FICO scores to improve my financial/credit situation - I currently can only think of a single possibility, which is to refi my auto loan from 2% down to 1.74%. This would save me $600 in interest charges over the life of the loan. Not much, but better than nothing. 

All 3 of my FICO scores are over 800, and I just recently realized that I haven't really utilized it to beef up my credit or finances. I've just been letting it sit. I feel as though I have been neglecting it, as if I had left $50,000 in a 0.01% APY savings account for years and years, slowly getting eaten away by inflation instead of selecting investments that will yield a larger return. 

I have a pretty strong credit profile - mortgage, auto loan, multiple credit cards with an avg and median credit line of $17,000, 1% utillization, no derogs, 10 yr history, 5 year average age, 0 inquiries in prior 12 months, and newest account is 15 months (the auto loan).

I used to periodically request credit line increases, but I think my current limits are more than enough. I don't mind taking the hit for new credit inquiries and new accounts (e.g. if I decided to do the auto loan refi) as I don't anticipate needing to apply for credit any time in the next 12-24 months, and even if something did come up, I'm confident I have a strong enough cushion with my FICO scores that it would not drop my scores by any significant margin. 

Any suggestions would be appreciated, thanks!

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I know the hardest thing to do is to do nothing.... but that's my recommendation.

Chill.

The best way to "beef up" your credit profile even further is to do absolutely nothing except manage your existing credit and let time pass.

[Anonymous]

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@SouthJamaica wrote:

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@andyaycw wrote:

I'm open to suggestions on what I can do to use my current credit profile and FICO scores to improve my financial/credit situation - I currently can only think of a single possibility, which is to refi my auto loan from 2% down to 1.74%. This would save me $600 in interest charges over the life of the loan. Not much, but better than nothing. 

All 3 of my FICO scores are over 800, and I just recently realized that I haven't really utilized it to beef up my credit or finances. I've just been letting it sit. I feel as though I have been neglecting it, as if I had left $50,000 in a 0.01% APY savings account for years and years, slowly getting eaten away by inflation instead of selecting investments that will yield a larger return. 

I have a pretty strong credit profile - mortgage, auto loan, multiple credit cards with an avg and median credit line of $17,000, 1% utillization, no derogs, 10 yr history, 5 year average age, 0 inquiries in prior 12 months, and newest account is 15 months (the auto loan).

I used to periodically request credit line increases, but I think my current limits are more than enough. I don't mind taking the hit for new credit inquiries and new accounts (e.g. if I decided to do the auto loan refi) as I don't anticipate needing to apply for credit any time in the next 12-24 months, and even if something did come up, I'm confident I have a strong enough cushion with my FICO scores that it would not drop my scores by any significant margin. 

Any suggestions would be appreciated, thanks!

---

I know the hardest thing to do is to do nothing.... but that's my recommendation.

Chill.

The best way to "beef up" your credit profile even further is to do absolutely nothing except manage your existing credit and let time pass.

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Sounds like the OP has been chilling.

[Anonymous]

I think that our OP is trying to find out whether he can leverage his very high credit scores to make himself some money in the next two years.  I believe that's what he is getting at when he says he wants to know if he can use his scores to improve his financial situation.  He gives a re-fi of a loan as an example, which would make him $600,  But he's just giving that as one example. 

Andy, is that what you are asking?

If so, the most straightforward means of making money (for someone with a little cash, a clean bank history, and good scores) is to begin chasing credit card bonuses and checking/savings account bonuses.  You could make 5k easily doing that in the next two years.

I don't try to push that as the right path for most people, but if you really want to make money and have no other use for the scores (e.g. preparing for a mortgage) it's worth looking into to see if it is right for you.

[andyaycw]

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@Anonymous wrote:

I think that our OP is trying to find out whether he can leverage his very high credit scores to make himself some money in the next two years.  I believe that's what he is getting at when he says he wants to know if he can use his scores to improve his financial situation.  He gives a re-fi of a loan as an example, which would make him $600,  But he's just giving that as one example. 

Andy, is that what you are asking?

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This exactly! Thanks - I should have been more clear in my original post. 

I hadn't given much thought to the CC signup and/or the checking/savings bonuses. I'll have to do a search for those on google and other forums to see what turns up. Thank you!

[Anonymous]

The two things work in tandem.  You open a credit card with a huge signup bonus.  Trouble is that to meet that bonus you need to run up a bunch of CC purchases (this is called a minimum spending requirement).  So then you open a bank account (ideally one with a big signup bonus) that permits what is called "credit card funding" -- meaning that you can use a credit card to make your first initial deposit into the account.  If you choose the bank account right, it will (a) permit CC funding and (b) allow you to fund it with a big deposit (e.g. 2k or 3k or whatever) and (c) that deposit will be appear on the CC bill as a purchase.  Hey presto -- you have just met some or all of the minimum spend requirement for the credit card, and possibly earned yourself both a CC bonus and a bank bonus.

CCs with huge signup bonsues sometimes involve expensive annual fees after the first year, so you would need to downgrade a card like that to a no AF card before month 12.  E.g. the expensive Chase Sapphire Reserved to the no AF Chase Sapphire.

Let me know if you'd like me to send you some links that would introduce you to this twin world of bonus chasing.

The first card you should seriously think about is the Chase Sapphire Reserved.  The current offer of 100,000 points will drop to 50,000 in mid March I believe.

[Anonymous]

If you have the cash flows as Dixie said there are great cards to earn cash or miles out there.   The secret s are paying off in full monthly and what you can spend run through your cards.  Bonus money is fun also.  Some are are really easy others require watchng where you spend what when.