Credit Score or Loan

[Long Dinh]

Hello all,

I have 5 Long Term Rentals that I converted to STR this year.

I took out 40k from 2 CC to furnish the property and made some repairs.

This lower my credit from 740 to 600.

I would like to perform a Cash out refi to buy another property.

I was told to take out a personal loan to use on the CC to raise my credit score. Then pay off the loan with the Cash out refi.

Should I do this or just try to do a cash out refi?

Thank you for your answers. I'm looking to learn.

[Jay Hurst]

@Long Dinh   A lender should be able to do a "what-if" simulator on your credit report.  This will tell you what credit card should be paid down to what balance to most effectively improve your score with the least out of pocket. This would give you the best "bang for the buck" and allow you to improve your score with the least amount out of pocket.  

and even with a lower credit score, IF the scores are low ONLY because of revolving debt balances and not because of derogatory items like late payments, foreclosures, BK's etc we have made portfolio loans to help folks get out the current situation with cash out.  Love to discuss.