- Continue to purchase 1-2 rental properties a year
- Keep enough revolving credit for large emergency's
- Continue to pay off credit balance each month in order to avoid interest charges.
- Have highest cash back my bank offers.
- Expenses to income monthly is 45%
- Debt to income annually is ~32%
- Credit card debt is cleared monthly
- All three credit scores above 750
I noticed my bank offered a cash back card that would get me .5% more if I got it. When I applied the bank offered me another $20k in revolving credit at an apr of 12.9% (which I requested they review to get down to 11.9%). If accepted my total available credit between my two cards at this bank would be $30k. Now I only have one credit card currently and the balance never exceeds what I can't cover in a single month. Usually 20%. My question is two fold.
- Will it hurt my credit if I accept this new card?
- Will it hurt my ability to continue getting home loans if I accept this new card?
We are assuming that my spending will remain a constant so my credit utilization would drop to 5% I think.