Credit Score Question (please advise) "just trying to get ahead" (business credit, student loan)

[SalesProdigy]

I am 22 years old, right out of college and work in software sales. I mak
e 100k a year, but live in the bay area . I plan to move to Texas by February.

My current credit score is 720.

I have about 4k in liquid cash.

I have paid off 4k in student loans.

I have 6k available credit on a visa (through Bofa), my current balance is approx 2600.

In college I ran an advertising business which grossed about 50k, I am now eligible to apply for a business credit card with a credit line of 30k.

My question, should i get the business credit card solely as a credit booster?

I would like to buy a house within a few months and need to know what I need to do, to be in the best position when engaging in this transaction.

Thanks

[GreenMachine]

Originally Posted by SalesProdigy

I am 22 years old, right out of college and work in software sales. I mak
e 100k a year, but live in the bay area . I plan to move to Texas by February.

My current credit score is 720.

I have about 4k in liquid cash.

I have paid off 4k in student loans.

I have 6k available credit on a visa (through Bofa), my current balance is approx 2600.

In college I ran an advertising business which grossed about 50k, I am now eligible to apply for a business credit card with a credit line of 30k.

My question, should i get the business credit card solely as a credit booster?

I would like to buy a house within a few months and need to know what I need to do, to be in the best position when engaging in this transaction.

Thanks

Sure, get it. It won't hurt you. I have several credit cards.

Greenie

[SalesProdigy]

Not really the response I was looking for. Does anyone have any advice or insight into my situation?

[Briolat21]

Open inquiries to your credit can hurt you. You already have a score over 720 - so that's pretty high. Also, one of the most important things is the HISTORY (how long you've had the card and been making payments), so new card won't help you that much.

post on the "Mortgages" thread -- those people really know their stuff, they can advise you much better!!

good luck!

[GreenMachine]

Originally Posted by SalesProdigy

Not really the response I was looking for. Does anyone have any advice or insight into my situation?

I said it won't hurt you. What other type of response are you looking for? Your credit rating is not going to go much higher. Get the card if you need it. Don't get it if you don't..... Either way, it doesn't matter !!!!!

Greenie

[christina0001]

Ditto brio...opening a new account can lower your credit score. Don't do it.

You have very little in savings. Do your best over the next few months to save as much money as possible, and maybe you'll be able to make at least a small down payment.

[ColoWeb]

Few things:
Few credit cards are ok. One I ok but few adds to your credit history.
Too many may be bad. I.e. opening one will not impact your credit score much right away, but it may help in the future in the building history category.

This also depends on the future plans. Too little of a credit limit is bad because it may make it look like you are using high % of the credit. Too much is bad because that is a potential liability.

Personal opinion, few cards with $5-10 limit is ok. When you have more history, higher limits would not be an issue.

Another tip: Pay off the CC monthly and do not carry balance. Carrying a balance does not help your score.

[GreenMachine]

CC companies send in a report once every 30 days, so it would not show up until then. They look at the amount owed versus the credit limit. So if your credit limit is $6,000 and you owe $5,900 --- not good. I have three credit cards with a limit of $15000 and I only carry about $1,000 on them a month..

Greenie

[Karla with a K]

Originally Posted by SalesProdigy

I am 22 years old, right out of college and work in software sales. I mak
e 100k a year, but live in the bay area . I plan to move to Texas by February.

My current credit score is 720.

I have about 4k in liquid cash.

I have paid off 4k in student loans.

I have 6k available credit on a visa (through Bofa), my current balance is approx 2600.

In college I ran an advertising business which grossed about 50k, I am now eligible to apply for a business credit card with a credit line of 30k.

My question, should i get the business credit card solely as a credit booster?

I would like to buy a house within a few months and need to know what I need to do, to be in the best position when engaging in this transaction.

Thanks

ok the only way this might affect you is if the underwriter reviewing your credit says "hmm what if he was to go out and use 1/2 to 3/4 of this limit. They may take that into consideration and figure what the payment would be if you did this.
One credit union I know uses this method when they determine if they are going to approve a loan. They figure out what the min payments would be if you maxed out the cards and added that to your monthly payments.

The best thing would be to go into your lending institution and ask a loan officer what you would qualify for. You never know, if the highest trade line balance you have had is $6K they maybe a little leary of lending someone a few hundred thousand and the loan officer may tell you to get the card.
If every loan officer and underwriter thought the same things would be a lot easier

It is at least 30 to 45 days till the trade line is reported , it depends on how often the companies send in the tape so having a such a new trade line may not affect your borrowing power.

One other concern is if the company is really slow and lets say you were approved for the mortgage with out it and wham all of a sudden right before you close it shows up on your credit report (lenders pull a report right before closing) it could cause the loan not to close.
This is a mistake made buy tons of new homeowners right before closing they decide to go out and buy all new furniture for the house on credit I have even seen them buy cars.
The rule of thumb is no new activity on your report for 4 to 6 months before beginning the process

karla

[DanielChang]

Originally Posted by Karla with a K

ok the only way this might affect you is if the underwriter reviewing your credit says "hmm what if he was to go out and use 1/2 to 3/4 of this limit. They may take that into consideration and figure what the payment would be if you did this.
One credit union I know uses this method when they determine if they are going to approve a loan. They figure out what the min payments would be if you maxed out the cards and added that to your monthly payments.

The best thing would be to go into your lending institution and ask a loan officer what you would qualify for. You never know, if the highest trade line balance you have had is $6K they maybe a little leary of lending someone a few hundred thousand and the loan officer may tell you to get the card.
If every loan officer and underwriter thought the same things would be a lot easier

Hi "Karla with a K" -- what you are saying makes a lot of sense and I have never heard it put this way before. Does this mean it's better for me to close out credit lines before shopping for a mortgage? I thought most mortgages went through automatic underwriting system.