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Funny how credit scores and borrowing money works

Posted by ceregon Mar 5 '10, 13:19

I just paid off my student loan (from my MBA) at a ridiculous low interst rate (but I make too much to get the deduction). The reason for paying it off: If I completely pay off the roughly $15K with a measley monthly payment of $130, I can now borrow approximately $90K more for another house in Las Vegas.

I also called my credit card and asked for my limit to be raised (even though I haven't come near it in years) and they raised it. So now I use a smaller percent of my available credit and my credit score goes up.

It all KINDA makes sense to me, but it seems like I can game the system way too much. Of course, I will continue to do so as long as it facilitates my financial endeavors.

Responses:

If you really wanna game the system, get a 0% (intro) credit card, max it out and invest the cash. - Dr.Vermin Mar 5, 13:23 1
- except that you are using 100% of your credit, and this will cause your credit score to go down -- nm - ceregon Mar 5, 13:30

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Funny how credit scores and borrowing money works

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