topic Re: Applying for new credit after buying a house?? in Credit Cards

Applying for new credit after buying a house??

RW771 — Wed, 30 Nov 2011 19:04:29 GMT

Hi everyone,

I will be closing on my first home a week from today! Of course, like many people, I'll be needing to purchase some appliances and furniture. I am wanting to apply for a Home Depot or Lowe's card (whichever has the better deal of course) AND a furniture store card. Now I'm only wanting to purchase a washer and dryer and a couch, so I'm not looking to go crazy or anything lol.

Currently, I have 3 revolving cards: 2 share-secured cards, and 1 department store card. My credit is (I'm assuming) still around what's listed below but I haven't checked it or gotten any alerts since getting pre-approved for my mortgage loan at the end of October.

My question is, will applying for 2 cards so close together affect my chances of getting approval? I haven't applied for a credit card in almost 10 yrs, with the exception being my department store card with a $200 CL. I figured with my decent credit scores and only the 3 cards listed above, it shouldn't be a problem. I don't really want all the inquiries, but the only other inquiry I have is from the bank when I got pre-approved.

Ideas?

Edited to add: Oh yea, I know not to apply until AFTER we close and the loan is recorded and funded. lol

Re: Applying for new credit after buying a house??

Switch2007 — Wed, 30 Nov 2011 19:30:00 GMT

I dont think it will be a problem... I applied for my Freedom shortly after we closed on our refi-. I know thats a little different, but same mortgage reporting on my CR. I'm pretty sure you wont have a problem getting what you want/ need. Good luck, and CONGRATS on your closing!

Re: Applying for new credit after buying a house??

MS00000000 — Wed, 30 Nov 2011 19:47:30 GMT

I agree, I don't think it will be a problem either. I had only one open credit card when my mortgage closed, and I needed some things from Home Depot/Lowe's and went with Home Depot at the time (customer service was better at my local store) and I was approved immediately online for $1000. Admittedly that's a bit low for a washer/dryer combo, but I didn't need that and the $1000 worked fine for my needs in the beginning.

I've also read on these forums that you might be able to get a higher initial limit by applying in store. Not sure if that's the case, but something to think about. Good luck!

Edit: I also applied for a couple of other cards too, and some were declined and others approved. It will depend on where you choose to apply and their criteria, but I think you'll be okay if it's only 2 cards you need.

Re: Applying for new credit after buying a house??

dalebb — Wed, 30 Nov 2011 19:55:43 GMT

im thinking why would u apply 4 store cards, u have 1 already, hit up the cards u have 1st for CLI, then try for some point cards where u get something back 4 ur purchases/ and 0% for some months

Re: Applying for new credit after buying a house??

ptr2593 — Wed, 30 Nov 2011 19:56:20 GMT

Yup, no problem at all as long as you wait until absolutely everything is finalized :)

Also, I don't know what the perks of a Lowes/Home Depot card is, but you might consider a Citi Dividend card as it is 1% back and currently Citi is offering 18-21 months of 0% APR, which might come in handy with all your new purchases.

Congratulations btw!

Re: Applying for new credit after buying a house??

dalebb — Wed, 30 Nov 2011 19:57:39 GMT

amen ptr

Re: Applying for new credit after buying a house??

kelli1970 — Wed, 30 Nov 2011 20:04:01 GMT

I closed on my house last night & apped for both Lowes & Kohls online this morning within minutes of each other... both were approved. These were calculated apps since almost everything else was paid off in preparation for getting a mortgage & my scores are the best they've ever been and I knew exactly which cards I wanted to add to my collection and why I wanted them (additional discounts at the register for both). My logic was that there isn't time for the inq to hit & cause a ding doing it that way, and I also did it before the mortgage could hit my CR.

Re: Applying for new credit after buying a house??

dalebb — Wed, 30 Nov 2011 20:06:55 GMT

kelli1970 wrote:
I closed on my house last night & apped for both Lowes & Kohls online this morning within minutes of each other... both were approved. These were calculated apps since almost everything else was paid off in preparation for getting a mortgage & my scores are the best they've ever been and I knew exactly which cards I wanted to add to my collection and why I wanted them (additional discounts at the register for both). My logic was that there isn't time for the inq to hit & cause a ding doing it that way, and I also did it before the mortgage could hit my CR.

again? why store cards?

Re: Applying for new credit after buying a house??

tntexans72 — Wed, 30 Nov 2011 20:17:29 GMT

Just make sure you choose your cards wisely. App only what you need. The more you app, the next approval will be a lower CL imo. Choose 2 to maybe 3 prime cards and hit the submit. GL and congrats on your new house. Must be really exciting for you & family......

Re: Applying for new credit after buying a house??

john398 — Wed, 30 Nov 2011 20:17:30 GMT

dalebb wrote:
kelli1970 wrote:
I closed on my house last night & apped for both Lowes & Kohls online this morning within minutes of each other... both were approved. These were calculated apps since almost everything else was paid off in preparation for getting a mortgage & my scores are the best they've ever been and I knew exactly which cards I wanted to add to my collection and why I wanted them (additional discounts at the register for both). My logic was that there isn't time for the inq to hit & cause a ding doing it that way, and I also did it before the mortgage could hit my CR.
again? why store cards?

I belive Lowes has no intreast finacing and Kohls gives you 10% on your next order when you apply

Re: Applying for new credit after buying a house??

kelli1970 — Wed, 30 Nov 2011 20:23:43 GMT

dalebb wrote:
kelli1970 wrote:
I closed on my house last night & apped for both Lowes & Kohls online this morning within minutes of each other... both were approved. These were calculated apps since almost everything else was paid off in preparation for getting a mortgage & my scores are the best they've ever been and I knew exactly which cards I wanted to add to my collection and why I wanted them (additional discounts at the register for both). My logic was that there isn't time for the inq to hit & cause a ding doing it that way, and I also did it before the mortgage could hit my CR.
again? why store cards?

Lowes gives an extra 5% discount at the register when you use your Lowes card and Kohls often has sales that have an extra15 to 30% off at the register when you use your Kohls card. So for me it's about the opportunity to save more on purchases. Much better than 1% cash back, IMO. So that's my reason.

Re: Applying for new credit after buying a house??

kelli1970 — Wed, 30 Nov 2011 20:36:23 GMT

tntexans72 wrote:
Just make sure you choose your cards wisely. App only what you need. The more you app, the next approval will be a lower CL imo. Choose 2 to maybe 3 prime cards and hit the submit. GL and congrats on your new house. Must be really exciting for you & family......

Thanks! It is VERY exciting!

eta: Oops! Maybe you meant the congrats to the OP! Yes, I'm sure they are very excited, as well!

Re: Applying for new credit after buying a house??

RW771 — Wed, 30 Nov 2011 21:13:22 GMT

Wow! Thank you all for the replies! I think that's the most replies I've ever received in such a short amount of time! Of course I never really post on this board since I don't have any "real" credit cards yet, but hopefully I'll be here more often (for good reasons lol).

The reason I don't use the share secured cards I already have is because one only has a $200 CL and the other only has a $400 CL. I got both cards earlier this year for rebuilding purposes in order to help my credit and establish history since my credit is so limited. I do use them and pay them down each month, but even at the limit for both, I wouldn't be able to buy a washer and/or dryer lol.

I'm debating whether to apply for a regular CC instead of a department store card. The only reason I decided to go with a department store card initially was for the simple fact that I'll have it when we decide to tackle some of the other projects the house is desperately needing (tile, kitchen updates, etc.).

A regular CC would probably give me a higher CL, but I think I'll have better control with a department store card for now and not go shopping crazy like I've been known to do in the past lol. In all seriousness though, this forum has definitely helped me get my credit back and helped me get to where I'm at now! I think it takes being denied credit/mortgage loan, especially during times when you really need it, to really respect and learn the discipline that comes along with keeping up with credit cards.

Last question I have is if I do apply for more than one card, is it best to do it close around the same time and if done within a 24 hour period, would it only account for 1 inquiry?

Thanks again!

Re: Applying for new credit after buying a house??

MS00000000 — Wed, 30 Nov 2011 21:56:58 GMT

RW771 wrote:
Wow! Thank you all for the replies! I think that's the most replies I've ever received in such a short amount of time! Of course I never really post on this board since I don't have any "real" credit cards yet, but hopefully I'll be here more often (for good reasons lol).

The reason I don't use the share secured cards I already have is because one only has a $200 CL and the other only has a $400 CL. I got both cards earlier this year for rebuilding purposes in order to help my credit and establish history since my credit is so limited. I do use them and pay them down each month, but even at the limit for both, I wouldn't be able to buy a washer and/or dryer lol.

I'm debating whether to apply for a regular CC instead of a department store card. The only reason I decided to go with a department store card initially was for the simple fact that I'll have it when we decide to tackle some of the other projects the house is desperately needing (tile, kitchen updates, etc.).

A regular CC would probably give me a higher CL, but I think I'll have better control with a department store card for now and not go shopping crazy like I've been known to do in the past lol. In all seriousness though, this forum has definitely helped me get my credit back and helped me get to where I'm at now! I think it takes being denied credit/mortgage loan, especially during times when you really need it, to really respect and learn the discipline that comes along with keeping up with credit cards.

Last question I have is if I do apply for more than one card, is it best to do it close around the same time and if done within a 24 hour period, would it only account for 1 inquiry?

Thanks again!

Unless you're mortgage or car shopping, each counts as an inquiry. If it's only two you're looking at, I don't think it will matter if you do them the same day or a few days apart. Two inquiries shouldn't be a big red flag. Ten in the same day might be, but I wouldn't worry about two if it were me.

Re: Applying for new credit after buying a house??

Booner72 — Thu, 01 Dec 2011 01:03:19 GMT

Hi, RW. As soon as my loan FUNDED (not just closed), I got a walmart for the FICO score and two accounts w/ my credit union (Visa and OD protection), in the same day. We refi'd the truck, a few weeks later, and then a week or so after that I bought a new/used car. The only pointage I lost was when the truck hit (new loan) due to loss of AAoA (I think).

have fun!

Lowe's approved DH while Home Depot denied him. His scores were 650+ at the time. 300 Lowes immediately upped to 1000.00.

Re: Applying for new credit after buying a house??

Capn12 — Thu, 01 Dec 2011 02:38:21 GMT

I kinda agree with dalebb...

I thought, for a while, I was going to do the HD/Lowes route when we close on a house (early 2012), but the more I think of it, the less likely that action is.

I opened a Citi card with $7,400 CL, and 18 months of 0% APR. That, IMO, is a WAY better option in the long run. But hey, more than one way to do such.

Re: Applying for new credit after buying a house??

tntexans72 — Thu, 01 Dec 2011 02:47:15 GMT

Capn12 wrote:
I kinda agree with dalebb...

I thought, for a while, I was going to do the HD/Lowes route when we close on a house (early 2012), but the more I think of it, the less likely that action is.

I opened a Citi card with $7,400 CL, and 18 months of 0% APR. That, IMO, is a WAY better option in the long run. But hey, more than one way to do such.

I agree, a hard iquiry is worth more than it's weight in gold. If you are going to use a hard iquiry, make sure it's worth it...in terms of apping for a prime credit card and getting a nice CL. That way, you can use the card any which way you want and 0% interest.

The 1st or 2nd or 3rd app will get a nice CL..once you starting hitting the submit button too much, you slaughter your AAoA - which can take over a yr to rebuild or longer, and you run the risk of getting a very low CL to start out with cause banks going to see that you are at risk due to the fact you are obtaining more credit and how they know that is by seeing you have a hard iquiry.

Re: Applying for new credit after buying a house??

dalebb — Thu, 01 Dec 2011 04:07:50 GMT

Capn12 wrote:
I kinda agree with dalebb...

I thought, for a while, I was going to do the HD/Lowes route when we close on a house (early 2012), but the more I think of it, the less likely that action is.

I opened a Citi card with $7,400 CL, and 18 months of 0% APR. That, IMO, is a WAY better option in the long run. But hey, more than one way to do such.

ty capn

Re: Applying for new credit after buying a house??

dalebb — Thu, 01 Dec 2011 04:10:24 GMT

dalebb wrote:
Capn12 wrote:
I kinda agree with dalebb...

I thought, for a while, I was going to do the HD/Lowes route when we close on a house (early 2012), but the more I think of it, the less likely that action is.

I opened a Citi card with $7,400 CL, and 18 months of 0% APR. That, IMO, is a WAY better option in the long run. But hey, more than one way to do such.
ty capn

that's 1 reason I like amex so much. They have gr8 cards and back date u

Re: Applying for new credit after buying a house??

clocktick — Thu, 01 Dec 2011 07:05:02 GMT

I can't comment on the HD card but I can on the Lowes. I really like my Lowes card because you automatically get 5% at the register, as stated above, or (if it's over a certain amount - I forget the amount, but it's not much) 6 months interest-free. It's backed my GEMB so they seem to be generous with their CLIs. I have Citi cards too but their 0% offers run out and owning a home...well, you will always have some sort of major expense: siding/roof/windows/furnace/pipes/remodling/carpet/tile/porch, etc. etc. :D