Managing Credit Score with Lines of Credit

[Daniel Kong]

Hello. I'm opening a few personal lines of credit to do short term BRRRRs. The problem is that now that I have the LOCs open and am borrowing from them, it looks like my credit score is taking a big hit. This may impact my ability to refinance when I need to and I'm wondering if anyone has advice on how to manage this. 

My idea is to find out the date the LOCs report to the credit bureau and then clear them out (pay them down low) just before that date, so that they will report a smaller amount - thus my Credit Score won't take as big a hit. Looking for some strategies on this. Thanks in advance!!

[Andrew Postell]

@Daniel Kong when you get prequalified with your refinancing lender they should be able to use your credit for about 90-120 days.  Try to see if you can time it to have your credit pulled with the balances are lower and then draw on them after.  Your payments will need to be held against your "debt to income" calculation so make sure you ask your Line of Credit companies how to calculate your minimum monthly payment and communicate that to your permanent lender as well.  Hope that helps.  Thanks!