cancel
Showing results for 
Search instead for 
Did you mean: 

New CC before Equity

tag
Cstone87
New Contributor

New CC before Equity

Hello board, Is it a bad idea to open a new CC before applying for a refi on my existing Home Equity Loan? My income is solid, scores are great, AAoA 5+ little debt, the card I would be applying for is through the same CU I am applying for the refi of the Home Equity I don't know if that's taken into consideration too. I believe Equity loans are less stringent underwriting polices than Mortgages. If anyone can provide clarity. Thanks PS-The reason why I want to apply for the CC now is the special offer is ending and I really want to dump one of my current cards that I keep a small balance on from time to time but whose interest rate wont budge despite my depository relationship with them. I truly am sick of them.
Too many cards
DOJ
Message 1 of 8
7 REPLIES 7
myjourney
Super Contributor

Re: New CC before Equity


@Cstone87 wrote:
Hello board, Is it a bad idea to open a new CC before applying for a refi on my existing Home Equity Loan? My income is solid, scores are great, AAoA 5+ little debt, the card I would be applying for is through the same CU I am applying for the refi of the Home Equity I don't know if that's taken into consideration too. I believe Equity loans are less stringent underwriting polices than Mortgages. If anyone can provide clarity. Thanks PS-The reason why I want to apply for the CC now is the special offer is ending and I really want to dump one of my current cards that I keep a small balance on from time to time but whose interest rate wont budge despite my depository relationship with them. I truly am sick of them.

Welcome to the forum

We will need more info 

What is your UTL?

Any baddies?

AAoA?

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 8
djc1puno
Valued Contributor

Re: New CC before Equity

i would personally do the refi first since that's more important than a CC...after you've done your refi i would go ahead and app Smiley Happy IMHO Smiley Happy



GARDEN GOAL: MARCH 2014
LAST APP: 08/20/2013
---=[NORTHBOUND]=---
Message 3 of 8
Cstone87
New Contributor

Re: New CC before Equity

My UTL is 5% EQ 747 TU 777 EX 767 All per MyFico Income 155k Equity Loan requested to refi 32K, no lien aside from the Equity, House Value 197k per County assessor AAoA depends on what report but avg 5.6-6 years oldest account, closed in 2005 opened iin 1980.
Too many cards
DOJ
Message 4 of 8
Cstone87
New Contributor

Re: New CC before Equity

No Baddies ever Although EX has 1 inq from opening my MMA at my Bank in 2011 November EQ-0 Bad 0 Inq TU-2 Inq for card that I currently want to discontinue using, in Feb 2012 asked for CLI and pulled it hard again
Too many cards
DOJ
Message 5 of 8
djc1puno
Valued Contributor

Re: New CC before Equity

JFYI...inquiries over 12 months no longer count Smiley Wink they stay on your reports for 2 years, but impacts only for 12 months Smiley Wink



GARDEN GOAL: MARCH 2014
LAST APP: 08/20/2013
---=[NORTHBOUND]=---
Message 6 of 8
myjourney
Super Contributor

Re: New CC before Equity


@Cstone87 wrote:
My UTL is 5% EQ 747 TU 777 EX 767 All per MyFico Income 155k Equity Loan requested to refi 32K, no lien aside from the Equity, House Value 197k per County assessor AAoA depends on what report but avg 5.6-6 years oldest account, closed in 2005 opened iin 1980.

Sorry for the late responseSmiley Sad

I would say your good to good after the home equity loan is closed then pick the cards you want and go for it. Just make sure you app before the new loan reports to CR's 

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 7 of 8
azguy13
Senior Contributor

Re: New CC before Equity


@myjourney wrote:

@Cstone87 wrote:
My UTL is 5% EQ 747 TU 777 EX 767 All per MyFico Income 155k Equity Loan requested to refi 32K, no lien aside from the Equity, House Value 197k per County assessor AAoA depends on what report but avg 5.6-6 years oldest account, closed in 2005 opened iin 1980.

Sorry for the late responseSmiley Sad

I would say your good to good after the home equity loan is closed then pick the cards you want and go for it. Just make sure you app before the new loan reports to CR's 


Agreed. I look at any Refi like app'ing for a mortgage. Make sure you have no current inq's and make sure you don't look desperate for credit. Granted, on CC does not make someone look desperate, but it doesnt help. 

 

You are solid once your refi goes through!

Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.