Help selecting card for my needs (difficult)

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pb576
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Help selecting card for my needs (difficult)

Postby pb576 » Thu Aug 28, 2014 11:40 pm

I've had credit for 14 years. I used to have great credit, then went through a period where it tanked to around 550. I am a medical student and will graduate next spring with ~250k in loans. I also have a credit card through a jeweler (synchrony), in which I've paid down to ~$900 ($1,500 limit). My mother took out a card to help on the ring I bought and I currently pay for that as well ~$1,000. I've raised my credit to around 675 at the moment. I have a couple of questions
1. Is there a way that I could do a balance transfer for my amount and the amount on hers? What about JUST hers (to get it all in my name)?
2. I will be making some MAJOR purchases (home and business for my medical practice) in the next year, and would like to raise my score as best I could (roughly 9 mos to go). Should I be looking at particular cards to put me in a better situation?

Thanks in advance!


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CarefulBuilder14
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Postby CarefulBuilder14 » Fri Aug 29, 2014 12:58 am

How much money are you expecting to make once you graduate? With $250k in loans and the lack of a down payment, I think most lenders are going to be pretty uneasy about giving you a mortgage. Realistically, you will probably have to wait more than 9 months to buy a home. Probably a few years.

I don't know much about balance transfers from one person to another, except that they would be unusual and probably complicated. Try to help her pay off the card as much as you can.

It's a painful but necessary reality check - if you can't repay $1,000 to your mother, do you really have any business buying a house?

As far as credit cards, you can look at perhaps Chase Slate or Discover It which often come with attractive terms for balance transfers. The inquiries would further diminish the slim chance of buying a home in the near future.
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Letting new accounts cool off since May
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pb576
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Postby pb576 » Fri Aug 29, 2014 7:31 am

Thanks for the response. Paying my mother each month is not a problem. It was more about the idea of getting the card out of her name. I will be making approx near 150k. Securing a home loan shouldn't be a huge problem since I currently own a home (I rent it out and have equity built up). I will be selling this to cash in on the equity.

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CarefulBuilder14
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Postby CarefulBuilder14 » Fri Aug 29, 2014 11:43 am

It is technically possible to have your name added onto the card and make it a joint account, and to then have her name removed from the account. The issuer probably won't allow this, though, as your mother's credit likely makes the account appear low-risk to them. You may have a high future earning potential, but at present you appear risky to them with your other debt.

If the goal is to get the debt out of her name, just devote whatever free cash you can get to paying her back ASAP and extinguish the debt altogether. What might be a good move financially, but might still bother you and her, would be for her to do a balance transfer card to stop the interest until you've got a good income. She would still be liable for making minimum payments on the new card, which can be higher than the minimum payments on purchases made on the current card.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when



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