How to go for BIG $200K-500K credit lines and 800+ credit scores?

[850Mastery]

Hey guys,

 

Love this forum! It's a god send!

 

Problem: I have a 610! Why is my score so low? Can I get any decent cards? Or am I out of luck?

 

I was at 720 in 2012 and since then my credit score has dropped to 633/628/611.

 

I would love to a be a CB success story!!! Help!

 

I was directed to this forum from the BiggerPockets Real Estate Forum to build up my credit profile.

 

I have 0 experience in building credit, I just figured I'd pay my payments and that's it, it would keep my scores up, I was wrong!

 

633 EX

628 TU

611 EQ

 

(Source: creditchecktotal.com 7/21/15)

 

SUMMARY -- Only 2 cards on file:

 

BALANCE LIMIT UTILIZATION Chase Slate $5,800 $6,500 89.23% Chase Freedom $2,700 $4,000 67.50% $8,500 $10,500 80.95%

 

 

 

Credit Used

Revolving Debt

$8,553.00

Revolving Credit Limit

$10,500.00

Revolving Credit Usage

81%

Real Estate Debt

$0.00

Installment Debt

$0.00

Total Debt

$8,553.00

 

 

Negative Information (Not sure what this info means?)

Accounts Ever Late

1

Accounts In Collections

0

Time Since Negative

1.4 year(s)

 

Length of History

Oldest Account

4.2 year(s)

Average Account Age

2.8 year(s)

 

Goal: 800 FICO and build around $200K-$500,000 in personal and business credit lines so I can use it as a short-term or additional cash to buy properties. I am currently using private / hard money at 12% which is fine since it's access to capital, but would love the ability to have revolving credit!!

 

Reason for HIGH CLI: $20K of $200K ties up 10% credit utilization vs. $20K of $40K credit ties up 50%

 

The plan I have so far, anything I should add to build up?

 

1. Open NFCU credit card, CLI to $25K over the next 6 months.. I opened an NFCU checking account today!! My dad contracts to the VA.

 

2. Ask to become an authorized user for a 800+ credit score card holder (someone in my family who might do it)

 

3. Open AMEX ED, CLI to $25K over 181 days.

 

4. Why is my score so low? Any other ideas to rapidly increase my credit line while I work on my score?

 

I will do my best to update this thread as we proceed!

 

 

 

 

[dilligaf]

So, you have a lot of reading to do. Read the pinned topics.

 

But, you really are in pretty good shape as far as negatives go. Don't let another payment go late.

 

Your issue is high utilization!

 

That can be fixed in two ways. Up your available credit or lower your used credit.

 

With scores like you have, the latter is the way to go.

 

My opinion is you need to change your thinking ...

 

 

Reason for HIGH CLI: $20K of $200K ties up 10% credit utilization vs. $20K of $40K credit ties up 50%

You don't want to use 10% even.

 

If you want high scores, you need to think of credit as only available.

 

Your best bet currently is to pay down your current debt.

[Kat58]

Your score is low, because your utilization is sky high. Pay off your credit cards. Leave a $2.00 balance on 1 card.

[cv91915]

You also need at least one more quality major credit card. What are the two cards you have?

[dilligaf]

You also need at least one more quality major credit card. What are the two cards you have?

Chase Slate and Freedom

[cv91915]

 

You also need at least one more quality major credit card. What are the two cards you have?

Chase Slate and Freedom

 

 

Duh. one more major card then.

[cashnocredit]

If you have hard money at 12% why not use that to pay the balances down? High utilization is killing you and the hard money won't show up on your FICO scores.

[Jordan0542]

The biggest Fico factors:

1. Payment history - You have a recent late payment. This is hurting your scores a decent amount. Could attempt a GW letter if it is 1 30 day late on 1 account.

2. Utilization - 30% hurts, 50% stings, and 75% kills. You are probably down 120 points or so between these 2 categories.

I'm not sure about inquiries, but account age is a tad low. You definitely need one more account, but cap1 QS may be your only option at this juncture.

Pay down balances fast and hard, try to GW the late off, and get 1 more decent card. Best of luck

[tobettercredit]

81%------>less than 10 %

 

Try not to live off of credit cards. Only use them for what your cash allows.

[mendelssohn]

I've had months where my utilization is very high BUT I pay the cards off before they report.

 

PIF and don't let balances report.

[moneypyts]

A basic strategy:

 

1) Get the balances on your two cards paid down to 40%. This ought to boost your score a fair bit, maybe 30 or 40 points? Your Slate card should give you your monthly Experian FICO '08 Credit Score, so you can follow it that way.

2) Apply for cards known for giving out high initial credit lines, or easy credit line increases. For instance, Synchrony Bank is good with increases, Lowes is the best card for that, Amazon or WalMart are also pretty good if you don't have a reason for a Lowes card. (Though if you're buying Real Estate I can see a Lowes card being pretty useful -- 5% off all purchases). Capital One Bank has easy approvals and regular credit line increases. And has decent rewards, like 1% cash back (though you're already getting that with the Freedom).

3) After you have a couple new credit lines of $2K - $5K reporting that will cut your utilization further. So after the new cards report for a month or two you'll be up another 20? points on your credit report. Can't predict with much accuracy, but establishing positive trade lines, building credit history, and reducing utilization are all things that improve your credit score.

 

4) Meanwhile, look at your spending habits. You've spent $8500 on your credit cards that you haven't paid off. If you want a short term loan, or a long term loan, you can work it with credit cards but its not the best way. And, if you're the type that has trouble keeping spending habits under control, it's not going to help to get another $20,000 in credit lines, because you may well end up at the bar, the casino, the jewelry shop, or any number of other places and start to spend money you don't have, and aren't able to earn in the near future. That's the bread and butter of the credit card industry -- people who get more credit than they can handle, rack up debts, and get stuck with $30,000 in credit card debt with a 20% interest rate. If you're in any of these categories, make sure you figure out how to get your spending habits under control *before* you increase your limits, and risk getting yourself $25,000 in the hole instead of just $8500 in the hole...

 

5) With a few new cards, the balances paid down to near-zero on your existing cards, and 6 months of credit history on your new cards, you should be up in the 680 ish range, where you can qualify for the good rewards cards from good banks with larger credit lines. American Express Delta Airlines, Citibank American Airlines, Capital One Venture, etc.

 

You can see what cards are available with different credit scores by scrolling up to the top of the page and choosing the "creditpulls" tab on the drop-down menu bar. Type in your state, a score of 680 or so, and you'll see what other board members have reported being approved for at that credit score. Or leave the credit score menu blank, the state blank, and enter "American Express" as creditor, and you'll see all the AmEx approvals, which drop down into the 680 range.

6) But, note that you can only get credit card credit if you're not using it. If you want to buy houses with $50,000 down, and plan to put it on a credit card, it's going to tank your credit score unless you have $300,000 in available credit. Which will take you about 2-3 years to accumulate, provided you have a decent salary.

For flipping houses, you'll probably want a loan that is secured by the property, rather than unsecured credit card debt.

 

Good luck, and report back with your progress.

 

MP

Edited July 22, 2015 by moneypyts

[moneypyts]

850M wrote
"(Source: creditchecktotal.com 7/21/15)"

 

What is your credit score provided by your Chase Slate card? If the creditshecktotal scores don't say they're "FICO '08" or something then they're meaningless, and your actual FICO credit score (which is what lenders use) might be better. Or the same. Or worse.

[NoPresetSnarkLimit]

850M wrote

"(Source: creditchecktotal.com 7/21/15)"

 

What is your credit score provided by your Chase Slate card? If the creditshecktotal scores don't say they're "FICO '08" or something then they're meaningless, and your actual FICO credit score (which is what lenders use) might be better. Or the same. Or worse.

CCT provides Fico scores

[rhondaparkerblac]

If you have hard money at 12% why not use that to pay the balances down? High utilization is killing you and the hard money won't show up on your FICO scores.

What is hard money?

 

Sent from my VS985 4G using Tapatalk

[David1]

 

If you have hard money at 12% why not use that to pay the balances down? High utilization is killing you and the hard money won't show up on your FICO scores.

What is hard money?

 

Sent from my VS985 4G using Tapatalk

 

 

Loan sharks. They provide capital to those that would not be able to get it through traditional means.

[cashnocredit]

 

 

If you have hard money at 12% why not use that to pay the balances down? High utilization is killing you and the hard money won't show up on your FICO scores.

What is hard money?

 

Sent from my VS985 4G using Tapatalk

 

 

Loan sharks. They provide capital to those that would not be able to get it through traditional means.

 

 

Hard money loans, which the OP referred to using at 12%, are privately funded, secured real estate loans. These loans are non-conforming and can't be securitized or guaranteed by GSEs so carry higher interest rates. 12% is not loan shark territory and is likely less than his CC balances accrue interest at. They also don't usually report on your credit.

 

Hard money loans will show up on LN as a title impairment but only reports to CRAs if the loan is from a large enough entity to do so.

Edited July 22, 2015 by cashnocredit

[rhondaparkerblac]

 

 

 

If you have hard money at 12% why not use that to pay the balances down? High utilization is killing you and the hard money won't show up on your FICO scores.

What is hard money?

 

Sent from my VS985 4G using Tapatalk

Loan sharks. They provide capital to those that would not be able to get it through traditional means.

Hard money loans, which the OP referred to using at 12%, are privately funded, secured real estate loans. These loans are non-conforming and can't be securitized or guaranteed by GSEs so carry higher interest rates. 12% is not loan shark territory and is likely less than his CC balances accrue interest at. They also don't usually report on your credit.

 

Hard money loans will show up on LN as a title impairment but only reports to CRAs if the loan is from a large enough entity to do so.

Ok, so if I wanted to do something like that to pay off all of my credit cards do you know a place?

 

Sent from my VS985 4G using Tapatalk

[cashnocredit]

 

 

 

 

If you have hard money at 12% why not use that to pay the balances down? High utilization is killing you and the hard money won't show up on your FICO scores.

What is hard money?

 

Sent from my VS985 4G using Tapatalk

Loan sharks. They provide capital to those that would not be able to get it through traditional means.

Hard money loans, which the OP referred to using at 12%, are privately funded, secured real estate loans. These loans are non-conforming and can't be securitized or guaranteed by GSEs so carry higher interest rates. 12% is not loan shark territory and is likely less than his CC balances accrue interest at. They also don't usually report on your credit.

 

Hard money loans will show up on LN as a title impairment but only reports to CRAs if the loan is from a large enough entity to do so.

Ok, so if I wanted to do something like that to pay off all of my credit cards do you know a place?

 

Sent from my VS985 4G using Tapatalk

 

 

I do, but only locals. Hard money tends to be from people that specialize in a neighborhood and aren't part of the regular bank/cu operations. For instance if you own a rental, have 75% equity, you might be able to get another 25% with a hard money loan. I get junk mail from them every 6 months or so but it's from people that specialize in the area I live. It's rarely the best/cheapest money but the OP seems to have a reasonable rate.

[OC gal]

I do hard money - got a great new program with low rates 8% - and low fees. Contact me by PM if anyone investors here are interested.

 

[EarnIt]

The last time I looked at a hard money loan, my CC was still the better option economically ... 0% for 18 months vs. X% with a 12 month payback ... ofc, that is you don't mind the ding for utilization ...

[earnestbunbury11]

If I read your post right it seems as though your answer to high utilization is to get so much more credit that the money you owe will seem trivial in comparison. Answers seemed right. Get another card. But also, work towards paying off the ones you have rather than trying to offset your utilization by getting more credit. It's fine, I guess, but it sort of has a real crash-and-burn vibe to it. Like hanging out with pygmies to make yourself taller.