Refi after Rebuild & app'ing for new credit?

lmfields84 · ‎03-25-2014

Hi There, I need some advice- my husband and I are deep into our rebuilding process, actually only have a couple baddies left to deal with, and our scores are on the rise. We BADLY need to get from under this crappy financing company with his truck and our 22% interest! Tower FCU would possibly refi us, and the plan was to wait until he hits 1 year of on time payments (July), which will also give us time for old charge-offs to fall off his report and possibly clean up the last of his baddies... but the problem is, we don't have any credit! He has the auto loan and a student loan (with spotty payment history, on time for the past 6 months) but no CC's. I figured this would be an issue having no open TL's, but I have also heard that applying for new credit is a no-no when you are about to make a major financing move... is that true? We can't wait much longer to open secured cards because we need to get re-established, but I don't want it to be a deal breaker for a refi. Help?

Remember0 · ‎03-25-2014

When people say no applying for anything before a major financial move, they mean mortgage. A refi doesn't really count.

Applying for a credit card and getting approved will probably HELP you with the refi. I'd go ahead and apply ASAP. And maybe two cards too unless you already have a lot of inquiries on youur reports.

Also what is NADA retail value on the car and current principal balance owed?

lmfields84 · ‎03-25-2014

NADA says about $11k, When we initially approached Tower FCU they said roughly $13k, we owe $16k! this is insane... at this rate we will NEVER pay this truck off!

Remember0 · ‎03-25-2014

Ouch, you sure that's NADA retail, not trade-in?! Know that you'll have to bring the cash to the table for the drop in value (3k @ Tower, probably 5k @ a CU like DCU).

Your answer on cc's earlier remains the same: Establish secured/low limit unsecured ASAP. Don't wait for refi as long as you don't app for more than 1 card (if you guys have more than say 3 inqs now) or 2 cards (if 2 or less inqs per bureau right now)