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Member
Girl_Friday98
Posts: 6
Registered: ‎04-29-2013
0

Hoping someone can help me decide what to do

I am thinking about purchasing a home and I want to get pre-approved for a mortgage as soon as possible.  I have been trying to rebuild my credit after some very stupid mistakes in my youth.  Some of those mistakes have fallen off my report, but there are a few lingering that could linger until about mid 2014, at which time they all should be gone.  My credit score is currently in the high 600's or low 700's.  I have one credit card of my own, a Capital One with a $1500 credit limit, which I use regularly and pay off in full every month.  My mother put me as an authorized user on one of her credit cards which has a $2500 limit.  My mother has subsequently started carrying a balance on that card of about $2200.  I would like my mother to take me off as an authorized user, but I am not sure how this will affect my credit score.  On the plus side, my credit usage should decrease significantly. However, on the negative side, it will show that I only have $1500 credit, and I am not sure if that drop in total amount of credit will cause my credit score to take a hit.  I have thought about a few courses of action:

 

1.  Do nothing, get my pre approval with the current score.

2.  Have my mother take me off of her card and do nothing else.

3.  Have my mother take me off of her card and apply for a new card in the hopes that I could get a higher credit limit now that my score is higher

4.  Keep my mother's card, and apply for a new card as well

 

I currently have no inquiries on my credit report.  Would applying for new a new credit card close in time to when I want to get preapproved for a mortgage be a stupid mistake? Which course of action would be best for me and my credit score?

 

Thanks in advance for any help anyone can give me! 


Starting Score: 645
Current Score: 699
Goal Score: 760


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Valued Contributor
Rhaeny
Posts: 1,507
Registered: ‎07-24-2011
0

Re: Hoping someone can help me decide what to do

If you close the AU account it should remain on your report for 10 years.  I have a few AU accounts that have been closed for at least one year that are still on my report.  It does count towards my AAoA becasue it is my oldest account at 29 years old.  So closing it will not hurt unless you have high util on your current card because now you will only have that $1500 as total available credt.

 

As for applying for credit before a mortgage, I would not do so.  When buying a house you don't want them counting an additional credit card as debt that must be paid, therefore reducing the monthly mortgage amount that you qualify for.  


Major CC's - Barclay's ($5.5K) | Barclay's Sallie Mae MC ($5K) | DCU ($7.5K) | Discover IT ($1.4K) | Genisys Visa ($1.4K) | NFCU Visa ($22K) | Navcheck ($15K) | Chase Freedom ($5K) | SDFCU Visa ($8K) | Amex BCP ($9.5K) | Amex Delta ($10K) |Store CC's| -Amazon ($4K) | Catherines ($850) | JCP ($4K) | Macy's ($1.7K) | Avenue ($850) | Victoria's Secret ($1.4K) | Walmart ($4.1K) | Paypal SC ($1.3K) | HSN ($2.5) | Sears ($2.6K) | Sams Club ($4.1K) |Goal|: Age with grace to 750 across the board |Last app|: 3/3/2014
Member
Girl_Friday98
Posts: 6
Registered: ‎04-29-2013
0

Re: Hoping someone can help me decide what to do

Thanks for the help.  I think I will just ask my mom to take me off her card and maybe try to get a credit limit increase from Capital One.  I hear that is damn near impossible... but it's worth a try.  Thanks again!


Starting Score: 645
Current Score: 699
Goal Score: 760


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Senior Contributor
myjourney
Posts: 26,659
Registered: ‎02-07-2013
0

Re: Hoping someone can help me decide what to do


Girl_Friday98 wrote:

Thanks for the help.  I think I will just ask my mom to take me off her card and maybe try to get a credit limit increase from Capital One.  I hear that is damn near impossible... but it's worth a try.  Thanks again!


You are hearing from the wrong people and I'm sending you an PM

"Intelligence plus character--that is the goal of true education"
Last 5 apps 6/6/13


Super Contributor
enharu
Posts: 7,132
Registered: ‎02-27-2013
0

Re: Hoping someone can help me decide what to do

best of luck with your Capital one CLI!

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Regular Contributor
vagrants
Posts: 150
Registered: ‎02-13-2013
0

Re: Hoping someone can help me decide what to do

Unlike other members' experiences, Cap One had been good to me. I can't remember when the last time I asked for a CLI on the VISA, but when I asked they gave it to me (I remember they asked for a reason of the CLI. I told the CSR that thinking of home improvement purchases). Then, my VISA from them was 1.25% cashback, asked for an upgrade to 1.5%, they gave it to me on top of VISA Sig upgrade. They declined my request to consolidate VISA Sig and World MC. That was the only one. I remember reading something about how Cap One behaves for sub-prime and prime. For sub-prime, horrible and for prime, well; the characterization fits with my experience.

AMEX CashRebate, AMEX Blue Cash, AMEX BCP, Barclay Sallie Mae Plat MC, Capital One QuickSilver VISA Sig, Capital One QuickSilver World MC (no AF), Chase Freedom World MC, Chase Freedom VISA Sig, Chase Ink Bold World Elite MC, Citi Dividend AMEX/World MC; Citi Hilton VISA Sig, Discover More, Fidelity AMEX, MyPoints Rewards VISA, US Bank Cash+ VISA Sig(1), US Bank Cash+ VISA Sig(2)
Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011
0

Re: Hoping someone can help me decide what to do


Girl_Friday98 wrote:

I am thinking about purchasing a home and I want to get pre-approved for a mortgage as soon as possible.  I have been trying to rebuild my credit after some very stupid mistakes in my youth.  Some of those mistakes have fallen off my report, but there are a few lingering that could linger until about mid 2014, at which time they all should be gone.  My credit score is currently in the high 600's or low 700's.  I have one credit card of my own, a Capital One with a $1500 credit limit, which I use regularly and pay off in full every month.  My mother put me as an authorized user on one of her credit cards which has a $2500 limit.  My mother has subsequently started carrying a balance on that card of about $2200.  I would like my mother to take me off as an authorized user, but I am not sure how this will affect my credit score.  On the plus side, my credit usage should decrease significantly. However, on the negative side, it will show that I only have $1500 credit, and I am not sure if that drop in total amount of credit will cause my credit score to take a hit.  I have thought about a few courses of action:

 

1.  Do nothing, get my pre approval with the current score.

2.  Have my mother take me off of her card and do nothing else.

3.  Have my mother take me off of her card and apply for a new card in the hopes that I could get a higher credit limit now that my score is higher

4.  Keep my mother's card, and apply for a new card as well

 

I currently have no inquiries on my credit report.  Would applying for new a new credit card close in time to when I want to get preapproved for a mortgage be a stupid mistake? Which course of action would be best for me and my credit score?

 

Thanks in advance for any help anyone can give me! 


:smileyhappy:

 

If your getting a house very soon no apps!




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Valued Contributor
tcbofade
Posts: 2,462
Registered: ‎09-26-2011
0

Re: Hoping someone can help me decide what to do

Talk to your mortgage broker.

 

With scores in the high 600's and/or low 700's and no recent baddies, I don't think that your CC util is going to make much of a difference one way or the other...and it certainly varies by lender.

 

We can all give you lots of good generic advise, but your mortgage broker will know what THEY want to see, and THAT is what you should do.  :smileyhappy:


Current Scores: EX 694 (FCR) TU08: 641 Wally.11/27/14
Last app 05/29/2014.
Being held hostage in the garden until further notice...
Zero percent financing is where the devil lives...
Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011
0

Re: Hoping someone can help me decide what to do


tcbofade wrote:

Talk to your mortgage broker.

 

With scores in the high 600's and/or low 700's and no recent baddies, I don't think that your CC util is going to make much of a difference one way or the other...and it certainly varies by lender.

 

We can all give you lots of good generic advise, but your mortgage broker will know what THEY want to see, and THAT is what you should do.  :smileyhappy:


Good advice :smileyhappy:




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Established Contributor
namvet
Posts: 866
Registered: ‎09-22-2011
0

Re: Hoping someone can help me decide what to do


LS2982 wrote:

tcbofade wrote:

Talk to your mortgage broker.

 

With scores in the high 600's and/or low 700's and no recent baddies, I don't think that your CC util is going to make much of a difference one way or the other...and it certainly varies by lender.

 

We can all give you lots of good generic advise, but your mortgage broker will know what THEY want to see, and THAT is what you should do.  :smileyhappy:


Good advice :smileyhappy:



LS2982 wrote:

tcbofade wrote:

Talk to your mortgage broker.

 

With scores in the high 600's and/or low 700's and no recent baddies, I don't think that your CC util is going to make much of a difference one way or the other...and it certainly varies by lender.

 

We can all give you lots of good generic advise, but your mortgage broker will know what THEY want to see, and THAT is what you should do.  :smileyhappy:


Good advice :smileyhappy:


 +1


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