Credit Cards

[gary4872]

I'm tempted to put in an app somewhere (maybe Chase, since they pull EQ) but really don't know if I should. The reason I don't know if I should is because I'm going to be refinancing my home in October. The reason I'm thinking of doing it is to help util. Here's the scenario:

Penfed gas card $4,800 bal $30k limit (new card, 1.5mo old)
Cap1 $1200bal $2k limit (since 2004)
Orchard $0bal $700 limit (since 8/2006)
HSBC Amex $200 bal $1k limit (not reporting to CRAs) (since 8/2007)

The Cap1 balance is a new charge on a deposit I had to put on something. It's going to be BT'd to Penfed. There are a few things we have to do so the Penfed card will likely be about $10k in the next month (home improvements to increase value before the refinance and a few wedding deposits) We will have the Penfed card down to $5k again by October (though I know it would be more ideal to have around $3k bal reporting) and will have no other balances

I have 3 older accounts reporting that are each almost 9 years old. I just refinanced my car with Penfed and it is not reporting yet (still showing as with the old CU). My 2 mortgages have a 2 year history each.

New account obviously would ding my average age and lower my score. Conventional wisdom says no new accounts 6 months before a mortgage and right now I'm at the 4 month mark (though after 3 months it is no longer a new account) It would also be nice to get a higher limit prime card in my mix. My EQ is currently 733. What should I do?

[cheddar]

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gary4872 wrote:

(though after 3 months it is no longer a new account)

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Actually, new accounts are "new" for 12 months.

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gary4872 wrote:

My EQ is currently 733. What should I do?

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With a 733 EQ and a new mortgage in four months, I'd say leave well enough alone.

[gary4872]

Thanks cheddar, it's just so tempting! It's been so long since I've been able to click the submit button and reasonably be able to hope for an instant approval. Must...restrain....myself

I'd really like to hold out for my TU and EX to join my EQ score level so I can get a Merrill+ (which will also have to wait until after the refi is done)

*deep breaths*

[cheddar]

I understand.  It is very tempting.

Don't be like me, though, and end up with 10 accounts less than a year old.

[smallfry]

Cheddar is right I think. Don't apply for anything. Tell you what you might try. The Penfed card is still fresh. Why not ask for enough of a CLI to keep the utilization down. It should be the same inquiry as the original approval. Call and do the app on the phone. Most of their CSR's are good enough to tell you if you could get it before actually doing the app. You might have qualified for a larger initial line. Just a thought.

[concorduser]

Only 10...... You have to work hard to catchup with my 21 accounts in 12 months.

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cheddar wrote:

I understand.  It is very tempting.

Don't be like me, though, and end up with 10 accounts less than a year old.

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[gary4872]

Thanks for the thought smallfry - I already tried for $50k and they want to see a few months of payments. Maybe I'll ask again in August or so.

[smallfry]

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gary4872 wrote:

Thanks for the thought smallfry - I already tried for $50k and they want to see a few months of payments. Maybe I'll ask again in August or so.

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Few months of payments? You're golden. Once you have six months of payment history with them they should open up. Good luck.