(2yr in Progress) My goal is to go from where I was with non-existent credit to fairly seamless land ownership with barndominium type build as part of my 'home' loan. Thanks for time
Hello! Wanted to thank everyone ahead of time for any advice/thoughts contributed! I *think* I've been very deliberate/intentional & am building responsibly, you may have different thoughts. Please tell me! That includes telling me, in non-abusive ways, things to change or look out for. To make clear, I was unfortunately raised to view credit as terrible & avoid building anything. Has taken some time to try and correct this and adapt in my late 30's.
- Continue to build a attractive credit profile comprising varying types of loans/credit (Auto, Secured, Installment, Business, Etc). The goal is to finance, with preferred terms, the purchase & development of a significant plot of land that would be located within 30 miles of a major city in Ohio, in 2 years.
I am a Sole Proprietor Owner of a masonry company that will switch to a Single member LLC or Corp this fiscal year.
Have no credit history until 2 years ago. I do believe there were medical bills in excess of 10 years ago that I find no record of now, including at that hospital.
Current Credit Lines:
1: (Secured) Self Financial Bank, $980 secured credit limit - 2 Years
- 4 completed installment loans for varying amounts & lengths, leading to a cumulative secured increased credit limit of approximately $1000.00.
- Longest credit profile
- Re-up after every completed term
- Considering/Questioning if I should complete any additional installment loans at this juncture once the current one is complete? Is there a negative to keeping my current *secured* account but not initiating another small installment? My thought is i'm past this concern but wanting to vet that. The card limit would remain, just no additional loans.
2: Capital One, Quiksilver One - 1.5 Years
- Began 18 months ago
- Initial balance was $500, increased to $1500 December '22
- Had a 45 day swing of high card balance that may have delayed credit increase, all on time
3: Chase Freedom Unlimited - 1 Month
- Preferred card, waited to apply for. Approved January '23
- $5000 limit
4: Auto loan, Prime lender - Business Primary January '23
- $40,000 Financing
With exception of one month of high balance, under 10% normally, no missed payments
1: Huntington Bank, Business Checking - 2 years
- No credit line either accepted or offered
- Business checking
2: Capital One, Spark Business - 1 month
- Approved February '23
- $2000 Credit Limit
3: Truck Loan 40k, Prime Lender - 5 years
- High Positive Equity
- $700 Monthly
- 10k Deposit paid with Business Debit
- Intention and/or ability is to pay off as soon as allowed. Was asked to wait until 6 months for payoff by dealership.
- There is also a desire to pay off a significant portion of the current to roll into a bigger truck next year. I do not want to damage or inhibit myself if waiting is a bad idea.
- Purposeful loan to establish a significant payoff
1: Affirm, $2000 financed total, 1800 interest free.
- Power Station for heaters on winter jobsite(s)
- Monthly $150 payment
- Payoff with no penalty next week
The FICOS, Bureaus, etc are all good to high. No negatives anywhere. I'm not on the higher end of available limits or lender approval obviously but have taken steps to attain line(s) of good/great credit providers, I believe.
In the past 2 years, or slightly less, I've established a credit profile that I can manage and/or pay off early if it benefitted me. My current credit limit without auto being part of is 10k, with auto is 60k.
I've established one line of credit I was hoping for & intend to get a preferred business credit line in one year.
- Prefer to be outside the outer belt of a major city but within a 30min drive. Minimum 50+ Acres with a mix of forest/stream. Would be in Ohio, North Carolina or South Carolina.
- I'm not a fan of traditional housing. Looking specifically for a loan that could be applied to the "Barndominium," line of lender. That is to say, perimeter footing with large above ground structure built. I want to house the toys & equipment inside the same large structure that we have an amazing living structure in.
- I have a pretty exhaustive list of both subs as well as mechanical contractors. I also have significant knowledge myself in regards to home building. Anything that helps me contract my own build(s) with the freedom to pay as I see fit per component & pull own inspections is ideal.
My thought, outside of the general plan to gain another business credit line in one year, is to now hold steady. I don't see a reason to attempt any other credit profiles & unless noted differently, feel like I've diversified enough that I'm working towards an attractive profile for a lender, without being a risky 20 credit lines person. Am I correct? Any thoughts on holding where I am vs attempting any further diversification? I could manufacture an additional equipment loan paid on time for a trailer if need be but prefer not to, if it doesn't provide a significant gain to that lender profile.
Thank you so much if you've read all this. I hope that I've expressed this being important to me as well as trying to do things in a positive way. Have tried to include as much as possible so I don't waste your time. Your words are encouraged & while I think I'm offering thorough info, I'm sure I can clarify better! Feel free to ask any questions you may have.
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