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Non-Bust Out

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New Contributor

Non-Bust Out

Hello all. I am working on a legal document that heavily weighs savings and does not check credit reports and only reviews provided financials, like bank statements.

 

Probably a bad idea but I want to tap member wisdom: If I suddenly and within the same week deposit CC BT's into my bank account from three three different credit card providers, drive my overall utilization from only 1% to just under 29%- with a total of $25K in BT's- will this look like a bust out when it hits? Once my bank statement posts three months of this added 25K and legal document at issue is processed, I could then pay all BT's back. I never need to remove the deposited BT's from the bank only use them to show a higher savings snapshot then PIF the and eat the BT fees.

 

Fico's 780 ish. Oldest Account: 20 years. Newest 7 months. Average: 3-5 years. Their is no fraud involved, simply bank statements are the easiest documents to provide. Real estate etc. requires torturous appraisal process. Physical assets same. Correct: My credit is absolutely not going to be reviewed for the legal document. Issue is not killing my credit vs showing an extra $25,000 in savings for three months.

 

I over prepare hence this hypothetical. Thank you.

 

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Frequent Contributor

Re: Non-Bust Out


@busted2 wrote:

Hello all. I am working on a legal document that heavily weighs savings and does not check credit reports and only reviews provided financials, like bank statements.

 

Probably a bad idea but I want to tap member wisdom: If I suddenly and within the same week deposit CC BT's into my bank account from three three different credit card providers, drive my overall utilization from only 1% to just under 29%- with a total of $25K in BT's- will this look like a bust out when it hits? Once my bank statement posts three months of this added 25K and legal document at issue is processed, I could then pay all BT's back. I never need to remove the deposited BT's from the bank only use them to show a higher savings snapshot then PIF the and eat the BT fees.

 

Fico's 780 ish. Oldest Account: 20 years. Newest 7 months. Average: 3-5 years. Their is no fraud involved, simply bank statements are the easiest documents to provide. Real estate etc. requires torturous appraisal process. Physical assets same. Correct: My credit is absolutely not going to be reviewed for the legal document. Issue is not killing my credit vs showing an extra $25,000 in savings for three months.

 

I over prepare hence this hypothetical. Thank you.

 


Hmmmm....How many total cards do you have?  If you do this, then 3 cards would be reporting balances...How many are reporting now?  How much do you intend to pay back in monthly payments while you're holding onto this cash for 3 months?  You'd want to avoid AA and so depending on the bank, you may need to make significant payments rather than just minimum payments.  Also, what's your spend typically like on the cards you're considering using to do this?  To go from a couple hundred a month to thousands could poke bears you don't want to poke.  In the grand scheme of things, using your credit is fine and using balance transfers are fine, but you just want to make sure you're not triggering any adverse action on your accounts.

 

Good luck whatever you decide to do.

Message 2 of 7
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Valued Contributor

Re: Non-Bust Out

I'd be okay with the AA risk -- seems small enough, depending on the lenders.

 

But it might be simpler to borrow 25K short term from an Amex or Penfed or Prosper/Sofi etc? 

Starting Score: (5/24/2018) -- FICO 08 EXP: 643; FICO 08 TU: 642; FICO 08 EQ: 677
Current Score (11/11/2020): FICO 08 EXP: 747; TU: 762; EQ: 782
2020 Goal Score: 760 across the board


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Message 3 of 7
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Senior Contributor

Re: Non-Bust Out

For what reason do you need to show a higher balance in deposit accounts? If it's for POI/Mortgage etc. I would assume they might be curious as to where that $$$ came from all of a sudden, and then also wonder where it went to after 3 months?

 

 

 






Message 4 of 7
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Established Contributor

Re: Non-Bust Out


@James_A wrote:

I'd be okay with the AA risk -- seems small enough, depending on the lenders.

 

But it might be simpler to borrow 25K short term from an Amex or Penfed or Prosper/Sofi etc? 


Prosper typically has an origination fee that might be higher than the CC BT fees. Not sure about the others, but I'd try for zero or minimal origination fees if I were going to do this. OP might be trying to not open a new account or have inquiries so this might be moot.

Scores: Spt 20: EX FICO8 831, TU FICO8 828, EQ FICO8 823
AoOA: closed: 36 years, open: 25 years; AAoA: 11.8 years
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Loans: Prosper (20k/3yrs 7.14%), Lending Club (10k/3yrs 5.89%), Chase car loan (35k/6yrs 0.9%)
Message 5 of 7
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Frequent Contributor

Re: Non-Bust Out

You sure that BT to a bank account doesn't count as cash advance?

Please call or check the T&S to make sure that it doesn't count as cash advance (which would be your worst nightmare)

 

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Message 6 of 7
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New Contributor

Re: Non-Bust Out

I'm not so good with the quote function and I want to thank each of you above as individuals. I am really playing the hypothetical game. No wasting your time though because it is something that I may chance.

 

I have about 6 open cards of which three I would use. I really never thought about anything but paying minimum payments plus 10% since it is a three month short term objective followed by PIF. I am absolutely sure the BT's are the typical deposit to your bank for a fee (3%) then 0% or 3.99% monthly. And I have a decent account history back many years to decades so I respect all advice and would think my options thru over much of research first. 

 

Big thanks.

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