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Can having large debt hurt me

Discussion in 'Credit Talk' started by Brenda, Nov 30, 2001.

  1. Nov 30, 2001 #1
    Brenda

    Brenda Well-Known Member

    getting more cc. I about to go into debt for 50,000 to start my co.Does this lower my score and put me at risk of being turn down.




    Brenda The filmmaker
     
  3. Nov 30, 2001 #2
    bailey

    bailey Well-Known Member

    YES. Debt Ratios play a MAJOR role in credit scoring. How much will your ratios be using 50K, what are your credit lines??? if you max them out your score will sink very very low.
     
  4. Dec 3, 2001 #3
    Brenda

    Brenda Well-Known Member

    Thanks I think I wait and appy for more cards.
     
  5. Dec 3, 2001 #4
    Gumbo

    Gumbo Well-Known Member

    I can speak from experience. I have very high balances and no more available credit. Cannot get my FICO above the 650 mark and everything else on my credit reports is fine. So, yes, high balances will hurt your score.

    If you dedcide to go this way, get as much in credit limits as you can. Once you start using your cards in a big way, no one will give you any more credit. Then, when you are stuck, they will all raise your APR to 23.99% because you are a bad risk. Then, you have no place to go because you have no avilable credit.

    Sorry to be so negative, but that is the way it is. If you think you will need $50,000, get at least $100,000 in credit lined up.
     

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