What is the maximum amount I can qualify for line of credit with Fico score 704?
November 7, 2010 by admin
Filed under Student loans
I would like to apply for unsecured line of credit to purchase some work related equipment, my fico score is 704, I have 50 K Student loan currently on interest relief (in good standing), and two collection items that have been paid in full 3 years ago (741$ and 2200$) but they still show on my credit report, I have one credit card that has always been paid on time in full with 500$ limit for last 3 years. I would like to know what would be estimated maximum amount of credit that I could qualify for with the bank I have been with for 6 months?
Thak you for your time and I would appreciate your help!
Thats a decent score for all the collections ect you have had recently. Are you sure its 704? If so it will all depend on the finacial institution. I doubt you will get more than $10k of unsecured cash.
The Financial Institution will look into the Debt to Income Ratio; reason for Collections (be very prepared to cover that fully and possibly provide proof of payoff). They will look normally for your line of credit to be 10% of your gross annual profits from your combined personal and business income and will look at your liquidity too. I hope that helps. . . make sure that you have a Personal Financial Statement, two years tax returns (bus and pers if you can) and any profit loss items when you show up. . .
without income information and what u r going to do with the money the answer is zip, zero, nada. your credit score is also bogus, as its based on one small limit card, we have all seen this before and without a history of extensive credit with limits over at least 1000 preferably 2500 for a minimum of 12-18 months your chances are slim, however this is the reality of your situation. no car payment, what about living expenses hopefully if u r renting your are paying with a check and have copies of all payments, without this setup your credit doesnt justify much in the way of a loan.
It may not be possible to place an estimated amount due to the total of your obligations. Good score, which shows some level of “intent” but your best bet is to sit down with a local bank or credit union and layout it out for them. Only then will any number be meaningful. Just a perspective.
How do you qualify for credit?
You must show that you are creditworthy—that you can handle credit responsibly. When you apply for credit, creditors consider:
Ability to Repay—Whether you’re able to pay your credit invoices on your current income. Creditors look at past income and obligations, other credit commitments, and whether another monthly bill will strain your budget.
Assets—The value of your life insurance, car, home, and savings account, as well as other accounts and possessions.
Responsibility—Have you paid your credit as promised in the past? Have you paid on time and paid the full amount? If you’ve never used credit, the creditor will be the one to decide whether you’ll be a good credit risk. Creditors also consider the frequency with which you change jobs or addresses.
Accuracy—Double check to be sure that all the information you provide on the credit application is accurate. The information you provide may be verified with local credit bureaus, your employer, and your landlord.
I hate to be the bad news parson here but the real answer is you won’t.
You have what called a thin file with nothing but 1 credit card with a $500. 00 limit and student loans and on top of that you have collections.
This is the exact thing I have told people about several times, score is not the only thing that counts credit profile is just as important and in some cases even more important.
You have no qualifying credit of any kind for a unsecured line
of credit.
The best way to get an honest answer is to talk w/your banker. Paying cc in full, in one shot is not considered good because it doesn’t reflect re-payment habits over time, which is what bankers are looking for. Also, you will have to show records of earnings/expenses. A good rule of thumb is 60% of net earnings. Pls check you cr. score, it doesn’t sound right, in you situation, to be so high.