Discover IT and AAoA

[marathonmama24]

Starting to get that app itch...

My husband and I are looking to buy a home next spring. I have an Express card in my name for $250 (just got in Jan 14), and am an AU on a Cap 1 account for $1,500 (aprox 4 yrs old). I'll be stepping out the garden next month, and that Discover IT is starting to look preeeeeetty good. My question is, is it worth it to have the card for the hit my AAoA is going to take? Just looking to put ourselves in the best possible position to get approved for a mortgage. Thanks for any advice.

[myjourney]

Discover and Freedom are only good if you'll be able to get a lot of use out of the 5% categories

In that case the rewards can add up over the course of a year 

[daybreakgonesXe]

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@marathonmama24 wrote:

Starting to get that app itch...

My husband and I are looking to buy a home next spring. I have an Express card in my name for $250 (just got in Jan 14), and am an AU on a Cap 1 account for $1,500 (aprox 4 yrs old). I'll be stepping out the garden next month, and that Discover IT is starting to look preeeeeetty good. My question is, is it worth it to have the card for the hit my AAoA is going to take? Just looking to put ourselves in the best possible position to get approved for a mortgage. Thanks for any advice.

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If you're going to find the use for it in the next year, I personally feel the hit won't bother you too much. You'll have about a year on the Discover before you buy your home, so it won't be considered a "new account" (<6 months).

I know I'm stepping out of the garden for it in a few days even though I have a student loan and potential car loan app coming up this summer. I just feel my scores won't take a huge hit anyways to really put me out of the best rate.

All the best!

[DrZoidberg]

Getting the Discover could actually help you out with your thin profile. The AAoA won't drop much, your utilization will go up and possibly your score if you do well for the next year.