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Account Closed
  • Real Estate Agent
  • Richardson, TX
161
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511
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Credit cards for funding a project

Account Closed
  • Real Estate Agent
  • Richardson, TX
Posted

Hello everyone, 

I'm planning on using 0 % credit cards to fund a rehab project. I decided to not take the HML route since it takes a good chunk of my profits.

With that being said, I'm concerned how this could potentially ruin my credit. I'd like to know what would happen if I max all my credit cards and if my credit score will recover at some point. 

If someone could also share some of their CC strategies, that would be very helpful as well. 

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Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
  • Rental Property Investor
  • Mercer Island, WA
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Jon Holdman#3 Real Estate Deal Analysis & Advice Contributor
  • Rental Property Investor
  • Mercer Island, WA
ModeratorReplied

Stay below 30% utilization, 50% at the very maximum.  If you max out a bunch of credit cards, it absolutely will hurt your credit score.  I ran into this when doing a buy/rehab/rent/refi project. It did impact my ability to do the refi.

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