Need sound good advice on what would be better CLO... - myFICO® Forums

Tropical24 · ‎05-27-2017

I would like to do some home repairs, my question to myfico community is which one would be better. I have a credit card with a 15,000 limit and I have a cloc with a 15,000 limit. I do not want to use one specific account to charge 12,000. Do you think It would be better to just split the amount into two 6000 from credit card and 6000 from cloc or should I just take it off of one account. I would appreciate some sound advice on this one. Thanks for your help My Fico community.

Anonymous · ‎05-27-2017

Is your goal to save on interest or to preserve your credit scores? Without knowing what your goal is, it's tough to offer advice. Also, do you have other credit cards in addition to the one you mentioned ($15k limit) and if so, what are their limits and balances? How many open installment loans do you have and what are their current balances relative to their original balances?

Tropical24 · ‎05-27-2017

I wanted to be close to the 30% utilization on both accounts If I used both of them. To preserve the credit score if I am able to.Yes, I have other credit cards with low limits, Walmart 790 balance 210 , TJmaxx 690 balance 0, Discover IT 2000 balance 500, Quicksilver one 300, Quicksilver 500. Im in the process of rebuilding my credit. My installment loans are my student loans which Im paying on now the amount of student loans is 80,000 and the balance on that is 50,000. Paying monthly of course.

Anonymous · ‎05-27-2017

Based on our rising interest environment that we are in i would recommend a home equity line of credit. Is that an option for you?

Tropical24 · ‎05-28-2017

No It's not a option right now, I tried a home improvement loan and that was not an option they just said excessive obligations.. it's really hard to do anything with student loans. So I'm working on paying them down. Thanks for your time

SouthJamaica · ‎05-28-2017

@Tropical24 wrote:
I would like to do some home repairs, my question to myfico community is which one would be better. I have a credit card with a 15,000 limit and I have a cloc with a 15,000 limit. I do not want to use one specific account to charge 12,000. Do you think It would be better to just split the amount into two 6000 from credit card and 6000 from cloc or should I just take it off of one account. I would appreciate some sound advice on this one. Thanks for your help My Fico community.

I think it's best to split it evenly and stay below $4500 on each. If this means deferring some of the purchases, then defer some of the purchases, or prepare to see your scores go down. If you absolutely have to spend $12k all at once, then keep one of the accounts below $4500.

IMHO you are right NOT to get a HELOC, because I think borrowing against one's home is a bad idea.