Got pre-aproved for a line of credit for 20g's

[Todd Black 88]

BUT....will it affect my credit rating if I never even draw from it??

I think of it as like the student loan I had in university that's been paid off already. It helped my rating, but in this case, will it hurt me for just having it?


is anyone even reading this question? or do they just skip over it and reply to my orig. question?

It won't hurt you, but it won't help.
You need to borrow and repay to change your rating. Just having it won't affect anything, its what you do with it that affects your rating.

[Massimo]

BUT....will it affect my credit rating if I never even draw from it??

I think of it as like the student loan I had in university that's been paid off already. It helped my rating, but in this case, will it hurt me for just having it?


is anyone even reading this question? or do they just skip over it and reply to my orig. question?

I would say not as this would not show up as credit untill you with draw from the account. Try and think of it in reverse, you have $0 in the account and can with draw upto $20,000. So as long as you do not with draw the account will always be a $0

[Massimo]

Lots of good can comr from credit if managed properly.
In my neighbourhood unless you can save 900k dollars, you buy your house on credit.
I was a little short so i have a mortgage.

I do not argue that, there are few things that credit is good for and I mean a few things.

[Wh33lhop]

But out where I live in Van, it's all about the late model Ferrari's, M3's etc.

You live in Van?

Is it by a river?

[Todd Black 88]

I love Farley

[Stanley Rockefeller]

You live in Van?

Is it by a river?

lol

[Frog]

DO IT!

It is soo worth it! Spend the money you don't have! Trust me, it is truly an awesome feeling...


Don't listen to these ppl, DO IT!

[Turf1600]

any input on this?....

Yeah, I have some input. Want a safety net for the future? Save cash.

This thread is troublesome. You have said a few things that are startling. You asked about the above because you were worried about "just in case money" - which means you have none. You also said that you had a great credit score - which means you have debt. So, you have debt and no liquid savings. That means you don't need to borrow money. You need to save, pay off your debt and save money. You can't out borrow your poor money habits. You know what's crazy? Paying off your debt will hurt your credit score. Your score is mostly a measure of debt vs income - which basically means that if you have a great score you have a medium to large amount of debt. If you pay it all off and dont borrow for years - your score will shrink and shrink until finally you have no score!

These scores are in place to keep people borrowing and keep them paying interest. If you want to make payments all your life then go ahead and borrow your safety net. Long term you will lose with this kind of behavior.

Yep, good credit is a good thing.

Wrong. It's a measure of debt. Your own money paying you interest is a good thing!



If every criteria on this chart is met I can promise you one thing: You're low on cash, high on debt and losing money! Everyone bitches about gas, healthcare, etc - how about all of the free money you give away on interest because you can't save for anything or have a lifestyle you can't afford?

"But I pay them all off every month" Well look, there goes 40% of your score. Wasn't that the whole point in the first place?

Lots of good can comr from credit if managed properly.

In my neighbourhood unless you can save 900k dollars, you buy your house on credit.

I was a little short so i have a mortgage.

This means that you can't afford a 900k house. That would indicate that you can't afford the $1.9 million worth of payments you're going to have to make on it. A house as an investment? Yeah, let me know if it pays off. "But I'm not going to live here 30 years blah blah blah...." Then rent. Amortization tables pay interest first. Unless your house appreciates faster than interest then you're going to lose money vs renting.

[Holland]

Invest money, use interest for fun. In all seriousness, having something that's entirely paid for is better than owing on anything. Not to mention right now rates are complete shit, and companies are screwing over their customers.

[Massimo]

Yeah, I have some input. Want a safety net for the future? Save cash.

This thread is troublesome. You have said a few things that are startling. You asked about the above because you were worried about "just in case money" - which means you have none. You also said that you had a great credit score - which means you have debt. So, you have debt and no liquid savings. That means you don't need to borrow money. You need to save, pay off your debt and save money. You can't out borrow your poor money habits. You know what's crazy? Paying off your debt will hurt your credit score. Your score is mostly a measure of debt vs income - which basically means that if you have a great score you have a medium to large amount of debt. If you pay it all off and dont borrow for years - your score will shrink and shrink until finally you have no score!

These scores are in place to keep people borrowing and keep them paying interest. If you want to make payments all your life then go ahead and borrow your safety net. Long term you will lose with this kind of behavior.




Wrong. It's a measure of debt. Your own money paying you interest is a good thing!



If every criteria on this chart is met I can promise you one thing: You're low on cash, high on debt and losing money! Everyone bitches about gas, healthcare, etc - how about all of the free money you give away on interest because you can't save for anything or have a lifestyle you can't afford?

"But I pay them all off every month" Well look, there goes 40% of your score. Wasn't that the whole point in the first place?




This means that you can't afford a 900k house. That would indicate that you can't afford the $1.9 million worth of payments you're going to have to make on it. A house as an investment? Yeah, let me know if it pays off. "But I'm not going to live here 30 years blah blah blah...." Then rent. Amortization tables pay interest first. Unless your house appreciates faster than interest then you're going to lose money vs renting.

I like what you are saying about home loans. I know that this may be a bit difficult for some people to do but if you were to save $300 a week between you and your partner for 30 years at 6.7% you will save $1,385,086.62 which is divided up into $432,000 of your own money and $953,086.62 of interest.

In 30 years time houses would be more then 2mil but the average wage increases as well but if you were to increase you deposits accordingly you should have no problems.

[Turf1600]

I like what you are saying about home loans. I know that this may be a bit difficult for some people to do but if you were to save $300 a week between you and your partner for 30 years at 6.7% you will save $1,385,086.62 which is divided up into $432,000 of your own money and $953,086.62 of interest.

Here's the best part - with 1.3 million in the bank you don't need credit!

[Stanley Rockefeller]

This thread is troublesome. You have said a few things that are startling. You asked about the above because you were worried about "just in case money" - which means you have none. You also said that you had a great credit score - which means you have debt. So, you have debt and no liquid savings. That means you don't need to borrow money. You need to save, pay off your debt and save money. You can't out borrow your poor money habits. You know what's crazy? Paying off your debt will hurt your credit score. Your score is mostly a measure of debt vs income - which basically means that if you have a great score you have a medium to large amount of debt. If you pay it all off and dont borrow for years - your score will shrink and shrink until finally you have no score!

Don't say you know me or my situation from some hypothetical questions I've asked

[Jand3rson]

Don't say you know me or my situation from some hypothetical questions I've asked

Then don't post shit like this on a PUBLIC FORUM. Especially a fucking car forum!

Are you serious with this right now? You need to go talk to a financial advisor, someone at your bank, someone who can answer the questions you have about this directly, and with actual knowledge. Not the "knowledge" that most of the hundreds of people viewing this thread claim to have.

[Turf1600]

Don't say you know me or my situation from some hypothetical questions I've asked

I don't have to know you to know what a credit score is made of. Besides, I figured if I was wrong then you would know the answers already. If that's the case, good for you. I'm trying to help - not give you a hard time.

[Turf1600]

You need to go talk to a financial advisor, someone at your bank, someone who can answer the questions you have about this directly, and with actual knowledge. Not the "knowledge" that most of the hundreds of people viewing this thread claim to have.

The "knowledge" that the people on here have is unbiased and free. If you want to pay someone who is looking to make a commission for their biased advice go ahead. You can get real, quality information from the internet or a public library - but it seems as if people hate to leave their right to piss money away unutilized. By that same logic we should all have our cars restored by professional mechanics. Hell, why not pay them in borrowed money? We can turn our 4k cars into a 50k investment. Leave it to the pros....