[Pauldunlop13]

[QUOTE=LOW4LYF;24761601][QUOTE=Alvinized52;24745811]
3) keep monthly balances under 30% of credit limits.

You mean each card less than 30% or in total?

Both

Each card under 30%
Total under 30%

[OkieSnuffBox]

[QUOTE=Alvinized52;24765148][QUOTE=OkieSnuffBox;24764690][QUOTE=Alvinized52;24764219]

Originally Posted by LOW4LYF

It could be you do not have long enough credit history yet. Do you have any big loans like student loans, mortgages, etc...??

Yes, 13.5 years on a student loan. This is the 2nd mortgage I've had, and my "newest" credit card I've had for 11 years.

[Hawkeye]

Originally Posted by Alvinized52

Each!

Originally Posted by LOW4LYF

My credit score doesn't seem to have changed?

I consolidated everything to 1 card (0% interest transfer), so that card is up above 35%.........but my total utilization is only 11%.

Only total utilization ratio really matters to the credit score AFAIK.

Also, the rule of thumb I have heard is keep the total under 10%, 30% seems really high.

[Pauldunlop13]

Originally Posted by Hawkeye

Only total utilization ratio really matters to the credit score AFAIK.

Also, the rule of thumb I have heard is keep the total under 10%, 30% seems really high.

30 is high. But is a general rule.
That one CC at 35% is the issue
Drop that to 29% and you will see a difference

The big jumps in score happen when you get below 10% total. And you will get a bump each time you move down to 6/5/4 % range

[Alvinized52]

Originally Posted by Hawkeye

Only total utilization ratio really matters to the credit score AFAIK.

Also, the rule of thumb I have heard is keep the total under 10%, 30% seems really high.

I remember the class i took mention 30% or less to affect your credit (but that was over 20yrs ago. LoL). 10% is of course better than 30%, and if one can afford to do so pay off entire balance at end of each month is best.

[Alvinized52]

Originally Posted by Maestro

BTW this was governments solution for people who had too many credit cards. Your Credit Rating goes down for each card you have open, add up all the CC credit limits and that is your total debt risk, the higher this is the worse your rating.

The Government now requires anyone who issues you a CC even store cards to close the card if you do not use it. I never heard the credit rating going down because you reduced your credit debt risk or a card closing. I had number of cards close in the last year and rate keeps going up.

Hmm... I wonder if this applies to Helocs as well. Im about to open Helocs on 3 of my 6 investment properties to buy and flip other properties.

[bimmer456]

Originally Posted by Alvinized52

Hmm... I wonder if this applies to Helocs as well. Im about to open Helocs on 3 of my 6 investment properties to buy and flip other properties.

There will be a hard inquiry which will lower your score with each heloc. I'm getting my heloc refied because the adjustable rate went up so there was a hard inquiry. If you're using loans to buy the properties you could do a cash out finance to avoid opening another loan.

[Hawkeye]

Originally Posted by Maestro

BTW this was governments solution for people who had too many credit cards. Your Credit Rating goes down for each card you have open, add up all the CC credit limits and that is your total debt risk, the higher this is the worse your rating.

The Government now requires anyone who issues you a CC even store cards to close the card if you do not use it. I never heard the credit rating going down because you reduced your credit debt risk or a card closing. I had number of cards close in the last year and rate keeps going up.

This is wrong actually. Having more available credit is a good thing for your credit score, not a bad thing. Your credit rating doesn't care how many accounts you have open, it is more the utilization of them, type, and the average life of them.

I have a lot of cards open and my available credit is 1.5x my annual salary and I have a pretty high credit score.

Originally Posted by Alvinized52

I remember the class i took mention 30% or less to affect your credit (but that was over 20yrs ago. LoL). 10% is of course better than 30%, and if one can afford to do so pay off entire balance at end of each month is best.

Even if you pay off every month you will still show a balance unless you actively try and pay the balance off before the pull (around beginning of the month I believe). Just keep your utilization under 5% and you don't have to worry about it.

[Alvinized52]

Originally Posted by bimmer456

There will be a hard inquiry which will lower your score with each heloc. I'm getting my heloc refied because the adjustable rate went up so there was a hard inquiry. If you're using loans to buy the properties you could do a cash out finance to avoid opening another loan.

True... i could do a cashout refi. However, my first mortgages are all currently at 3.5% rate..which i dont want to loses. And im only using the helocs temporarily to flip houses... 3-4 mos tops at a time.

[roastbeef]

Originally Posted by Alvinized52

True... i could do a cashout refi. However, my first mortgages are all currently at 3.5% rate..which i dont want to loses. And im only using the helocs temporarily to flip houses... 3-4 mos tops at a time.

have you gotten a heloc on a rental yet? i've read that its tough. 3.5% is a great rate for a rental. i wouldn't want to get rid of that either.

[bimmer456]

Originally Posted by roastbeef

have you gotten a heloc on a rental yet? i've read that its tough. 3.5% is a great rate for a rental. i wouldn't want to get rid of that either.

Yes second properties that are not your primary residence have higher interest rates. If you plan on renting them out this could affect the rate as well.

[bimmer456]

Originally Posted by Alvinized52

True... i could do a cashout refi. However, my first mortgages are all currently at 3.5% rate..which i dont want to loses. And im only using the helocs temporarily to flip houses... 3-4 mos tops at a time.

I was saying for now you might have to use a heloc but in buying the new property if the heloc is just a downpayment maybe do a cash out loan to avoid opening another loan. Or maybe you can do on all cash deal and flip it if that's possible with the heloc money.

[roastbeef]

Originally Posted by bimmer456

Yes second properties that are not your primary residence have higher interest rates. If you plan on renting them out this could affect the rate as well.

right. 3.5% on a rental is phenomenal... i'm thinking he might have a 15 year.

[bimmer456]

Originally Posted by roastbeef

right. 3.5% on a rental is phenomenal... i'm thinking he might have a 15 year.

If he's only holding on to them for a couple of months before flipping maybe it makes sense, but an all cash deal would be better. Maybe if you're starting out in the flipping game you might have to finance though.

[Alvinized52]

Originally Posted by bimmer456

I was saying for now you might have to use a heloc but in buying the new property if the heloc is just a downpayment maybe do a cash out loan to avoid opening another loan. Or maybe you can do on all cash deal and flip it if that's possible with the heloc money.

Yes... thats exactly what im planning doing... all cash buy and flip. I have 5 investment propeties that i can pull Helocs on (possibly access to 1.5m ). Plenty enough to do all cash buy and flip.

I can’t qualify for conventional loans anymore due to having too many properties (even though all of them are rented and cash positive)... I never understood this. So having to resort to tapping my Helocs.

[Alvinized52]

Originally Posted by roastbeef

have you gotten a heloc on a rental yet? i've read that its tough. 3.5% is a great rate for a rental. i wouldn't want to get rid of that either.

3.5% are on the 1st mortgage on all my investment properties.... but not the 2nd loan /helocs. i wouldnt want to do cash out refi and lose my 3.5% rate.

Yes its very tough to get helocs on non-primary... Most banks wont do helocs on investment properties. But i found one bank EastWestBank.... although rate is super high 7.5% but (with no docs required)...urghh. But between all my properties.. i should have access to 1.2m-1.5m cash to play and flip propeties. Im thinking its worth it for temporary access to cash.... so i can buy properties and leverage “all cash” buying power for purchases.

[roastbeef]

Originally Posted by Alvinized52

3.5% are on the 1st mortgage on all my investment properties.... but not the 2nd loan /helocs. i wouldnt want to do cash out refi and lose my 3.5% rate.

Yes its very tough to get helocs on non-primary... Most banks wont do helocs on investment properties. But i found one bank EastWestBank.... although rate is super high 7.5% but (with no docs required)...urghh. But between all my properties.. i should have access to 1.2m-1.5m cash to play and flip propeties. Im thinking its worth it for temporary access to cash.... so i can buy properties and leverage “all cash” buying power for purchases.

If it's short term, have you looked into hard money lenders?

[zx10guy]

I guess I made out like a bandit with my vacation home. I have a 3.25% fixed rate for 30 years.

[Alvinized52]

Originally Posted by roastbeef

If it's short term, have you looked into hard money lenders?

Yep. But Rates are way too high for hard money.. 10-13%. Hence, im going this Heloc options first

[roastbeef]

Originally Posted by Alvinized52

Yep. But Rates are way too high for hard money.. 10-13%. Hence, im going this Heloc options first

i'm in a real estate investors group on fb and occasionally a private money lender will post up offering 5%. i'm not sure what their complete terms and conditions are. seems cheap for private money though.

[bimmer456]

Originally Posted by roastbeef

i'm in a real estate investors group on fb and occasionally a private money lender will post up offering 5%. i'm not sure what their complete terms and conditions are. seems cheap for private money though.

Helocs are good for flipping properties. After the intro rate they start to get expensive so it's best to pay it off before then and start over with a new heloc and intro rate.

[Alvinized52]

Originally Posted by roastbeef

i'm in a real estate investors group on fb and occasionally a private money lender will post up offering 5%. i'm not sure what their complete terms and conditions are. seems cheap for private money though.

really? wow! thats a better rate than some conventional loans Im getting now. Sounds way too good to be true. LOL!