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Great credit, but what to do with it?

Rawr

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Well since I am sitting home on Saturday night while EVERYONE I know is out drinking and because the material for tests I have to study for are almost as fun as watching grass grow (Accounting is REALLY fun...) I might as well get some useful info.


I have good credit. I don't know the score because I never wanted to pay to find out, but it should be good. (I have probably 7 years of credit history, 5 accounts total one is at 21,500 limit at 7.9%)

But.. how can I benefit from this? I've mentioned borrowing money at 0APR and investing it in for a return in this thread

But beyond that I am looking for ideas of what I can use it for.

I am not planning on buying (financing) a car anytime soon.
I am not planning on buying a house anytime soon (3 years - unless someone here talks me into it :rofl:)


My goal initially was to have around 50k limit on a card.. I though it would be cool :)

What I would like is to have a business credit line - but I don't know if I need a business first or if I can develop a line then add businesses to that line.

As always, all opinions welcome!
 

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DustinS

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Aug 11, 2007
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I have no idea how you can use your good credit to your advantage, but I'm pretty sure you can get a free credit check every year.
 

ProInvestor

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Aug 15, 2007
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There are a number of investors who look for good credit individuals to qualify for loans (investor and good credit applicant Joint venture together). Risk is the deal goes south, but I know a couple of investors who invest this way for 10 years plus.

Rgds.
ProInvestor
 
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Rawr

Rawr

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I have no idea how you can use your good credit to your advantage, but I'm pretty sure you can get a free credit check every year.
This is true, but all they show are usually accounts and standing, to get the score you have to pay more.

www.annualcreditreport.com is what I used
 

jimculler

New Contributor
Sep 14, 2007
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I spoke with a guy who is taking 0 percent credit card money and putting it into 5-6% high yield savings accounts to make money.

Although his credit scores have decreased due to high balance to limit ratios. If you ar enot interested in using your credit to buy anything or finance any investments, you could use it like this.
 
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Rawr

Rawr

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5-6% high yield savings accounts to make money.
Where are those? ING offers 4.3 I believe
 

andviv

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If you really want to know then pay for the credit score.
Right now I am in conversations with people in Tampa that have properties to sell and offering money and equity to partners that can bring great credit (above 680, 700 is better). They said these properties already have renters and are looking for traditional financing (I assume they bought using hard money). So, obviously, there are opportunities out there for prime borrowers.
 

MrDoctor

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Aug 13, 2007
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Well, are you a good investor? You don't want to take out 20k and lose it!

Do you have enough income and a steady enough job to sustain a long term mortgage? I am always in favor of owning as much property as you can possibly buy.

I've used my credit to take out huge personal loans to invest, and it was the best thing I have ever done. Sure, I was a really nervous trader, but it payed off eventually.
 

hakrjak

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Back in the 90's when I was a young pup with a lot of credit, I took about $30k out on plastic and invested it into the stock market. I was doing pretty good for awhile, and got up to around $50k, before I ended up losing it all when I had margin calls and everything else. Took me years to dig out.

The next time I used credit cards for investment purposes, I would be a little more conservative. More recently, I use them to finance house flips -- so I can keep track of all my costs pretty easily, and finance the cost of repairs. On 1 deal I actually used a cash advance as a down payment on a house, but only because I was getting such a good deal -- and didn't want to let it slip away.

Morale of the story is -- Yes, it's an asset, but know there is increased risk, and be sure to get a good ROI for that extra risk you're taking.

Cheers,

- Hakrjak
 
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Rawr

Rawr

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How does the saying go? Never gamble with your rent money.

Thanks for the advice hak. I agree that credit card debt will probably go towards business start up or RE
 

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yveskleinsky

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I am not planning on buying a house anytime soon (3 years - unless someone here talks me into it )
Why not buy a rental property now?

...To get your credit score, you can always go to the bank and apply for a loan/mortgage- or just tell them that you are thinking of applying for a loan but unsure as to what you would qualify for. They will pull your credit and credit score for free and let you know. ...Yes, it does ding your credit, but not by much and your credit will bounce back from the inquiry in 60 days or so. No big deal. ...What could be a big deal is that you have a lot of unused credit lines open, and that could be penalizing you. Find out your score, because when you are ready to move on something, you want to know where you stand or what you need to do in order to be in good standing.
 
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Rawr

Rawr

Gold Contributor
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Hey I woke up today and yves already beat me to it!

I was going to ask where the best place to get your score would be (I guess cheapest too) I guess I can run to the bank, any under $5 places online?
 

jimculler

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Sep 14, 2007
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If you really want to know then pay for the credit score.
Right now I am in conversations with people in Tampa that have properties to sell and offering money and equity to partners that can bring great credit (above 680, 700 is better). They said these properties already have renters and are looking for traditional financing (I assume they bought using hard money). So, obviously, there are opportunities out there for prime borrowers.

Be careful with Tampa "real estate investors". A lot of shady things go down in Hillsborough county in these types of scenarios.

I am just over the bridge from there if you need help with due dilligence (for Free of course).

Just FYI
 

andviv

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Jim, thanks for mentioning this. Actually this is exactly what is creating opportunities. Many investors got burned by shady people that used their credit to buy properties and disappear with the money. Now these investors need to sell quick and many are facing foreclosures. There are lots of properties available that have renters and should cash flow or at least break even. Part of the difficulty is to know what are the right areas. Especially if you are investing out of town.

This weekend, for example, there is an auction going on for that area... 95 properties going up for sale at once, check the listing here

Thanks for the warning. It is great to have this information at hand.
 

jimculler

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Sep 14, 2007
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Neat-o

Thanks for the heads up on the auction. Although it looks like I missed it. But its ok, I do all right in pre-foreclosures.

Good to hear you already know about the scammers that did inhabit much of the TB area here. I always hate to see another one screw someone over and give us all a bad name.
 
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Rawr

Rawr

Gold Contributor
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Aug 12, 2007
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So... 765, probably closer to 780 after today's upped limit.

How's that rate in the land of bank loans and getting a deal done? Anything I should be looking at?
 

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