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Help with Credit Plan

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zvonnegu
New Member

Help with Credit Plan

So I was looking for some guidance on the next steps I should take. My goal is to put together a very good credit profile so I can get low mortgage rates when I am ready to buy an apartment in a couple of years. My credit history is very short (absolutely nothing other than the three below credit cards).

 

I have had a Cap One Secured card for 13 months. Started at $250, got bumped up to $350 a few months later. No CLI since then.

 

I have had a Chase Freedom card with a CL of $4000 for almost two months.

 

I have had a Discover It card with a CL of $2500 for a couple of weeks.

 

The Discover Card app said my Equifax score was 731. The Chase app said one of my scores (can't remember which one) was in the 650s.

 

When should I apply for CLIs on my cards? Should I just close my Cap One card? Should I apply for another card? Any other general tips for boosting my scores and getting better mortgage rates?

 

I pay off my cards during the month to make sure that my utilization is reported as around 10%.

 

Thank you to anyone who responds, I really appreciate it!

Message 1 of 6
5 REPLIES 5
myjourney
Super Contributor

Re: Help with Credit Plan


@zvonnegu wrote:

So I was looking for some guidance on the next steps I should take. My goal is to put together a very good credit profile so I can get low mortgage rates when I am ready to buy an apartment in a couple of years. My credit history is very short (absolutely nothing other than the three below credit cards).

 

I have had a Cap One Secured card for 13 months. Started at $250, got bumped up to $350 a few months later. No CLI since then.

 

I have had a Chase Freedom card with a CL of $4000 for almost two months.

 

I have had a Discover It card with a CL of $2500 for a couple of weeks.

 

The Discover Card app said my Equifax score was 731. The Chase app said one of my scores (can't remember which one) was in the 650s.

 

When should I apply for CLIs on my cards? Should I just close my Cap One card? Should I apply for another card? Any other general tips for boosting my scores and getting better mortgage rates?

 

I pay off my cards during the month to make sure that my utilization is reported as around 10%.

 

Thank you to anyone who responds, I really appreciate it!


Chase and discover 6 months  also let the cap1 keep reporting as well

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 2 of 6
MovingForward_2012
Valued Contributor

Re: Help with Credit Plan

+1, don't close the Cap1 card until after closing...you will need at least 3-4 open/active trade lines reporting 12 months good history. You don't want to throw 13 months of good history away. Just SD it.

If your other scores are in the 700's, you probably already qualify for conventional. With conventional every pt counts towards reducing your interest rate...not so much with FHA loans...FHA buckets a wide range of scores under one interest rate.

I would be watchful of the mortgage rates as they are starting to go back up. So remember your report does not have to be perfect to qualify...you are in great shape already and trying to get it perfect may make you lose out on the historically low rates that are available. Don't over plan for a mortgage as most folks never reach the ideal state they are shooting for. Once you have your closing costs, downpayment, and reserves, start preapproval.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 3 of 6
zvonnegu
New Member

Re: Help with Credit Plan

Thanks guys, thats helpful info.  Unfortunately its gonna be about two years before I can afford a place (its quite expensive here in NYC). I am really hoping rates don't go up to much by then.  I just want to make sure that I am doing everything I can to better my profile and get the best rates possible.

Message 4 of 6
MovingForward_2012
Valued Contributor

Re: Help with Credit Plan

I heard on CNN last week that mortgage rates are expected to fluctuate below 5% until 2015.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 5 of 6
kimmiller112
Frequent Contributor

Re: Help with Credit Plan

Wait until you've had the Chase and Discover 6 months before asking for a CLI.  With regards to Cap One, since you have had it for over a year, I'd suggest emailing the EO (do a web search for the email address) and see if they will 1) unsecure it, and, 2) give you a CLI.  They will call you and ask you how much you want.  I'd ask for $2000 - they will counteroffer if they think it is too high.  You may also want to consider a GE backed card, like Walmart.  They may start you out low, but you can ask for CLI's every 4 months and they are generous with them. 

Barclays USAir World MC $8300 - DCU $7500 - USAA World MC $7000 - PayPal Extras MC (GE) $5500 - Chase Saphire Preferred $5000 - Discover It $6000 - Barclays Sallie May $2700 - Chase Freedom $1000 - Capital One $8500 (business) - store cards ranging from $500-$9500
Message 6 of 6
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