New Care Credit app affecting mortgage outcome?

[bgibs12]

Hi! I'm kind of new here.

I have a question. We're in the process of waiting for a USDA mortgage. We filled out our final application and we're just waiting on funding. Naturally, because these things ALWAYS happen, our dog needs to go to the vet.

MyFICO score is 648, and building. Will that affect the application for our mortgage? I know they say not to apply for any new credit cards when you're trying to get a mortgage, but I don't know what else to do. It will be paid off as soon as our income tax return comes in.

[CreditWorld2013]

Do you currently have any credit card that you have available credit on that can cover the vet bill? The reason is that if you can pay the vet with a credit card you already have and the date the card statement generates has already past...you can always put it on that card and the balanace won't show up until the next statement date. Given the fact that it appears you are close to closing you may close before that balance posts and you wouldn't have to worry about a new application. If you can't do the process I mentioned above you should look into a loan from relatives or friends. I don't think it is a good idea to apply for any credit before the papers are signed and you have the house.They may do one final credit pull to make sure everything is stable and if this comes up as new it may change the mortgage terms or if your file was borderline to begin with they may prefer to wait to see what you do with the new credit. If it came down to the dogs life or the "possible risk" of a mortgage I would get the CareCredit card and hope for the best. Hopefully...if it comes up they are understanding and perhaps they just overlook the entire inq + new account. 

[MovingForward_2012]

+1, and the new inquiry will affect your score. I don't know if your score requirement is a 640 or 620 but if it is 640, you are right on the edge. If you have to take out new credit, I would call your LO or broker tomorrow to get their thoughts first. Good luck!

[chnceit]

Mortgage lenders frown upon new applicants and credit while you are trying to obtain a mortgage. If I were you I would not apply. But like other members state call your LO to see what they say. Don't speculate. 

[bgibs12]

Thank you all! That is EXACTLY how I felt. I don't have another credit card, but maybe my parents could loan us the money. If I was intending to pay it off with a tax return anyway, maybe they'd be receptive to that.

Do you know much about Care Credit? My husband is applying for the mortgage because I don't have any income and my CS is like 580 from medical collections. Maybe I should just give it a shot and apply. I'm sure I'll be denied, but at least I gave it a shot. Then I can ask my parents.

The credit requirements for the mortgage are 640. She's sick, and 11 years old, but not like 'death is imminent' sick. It's not worth it to take the chance.

[CreditWorld2013]

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@bgibs12 wrote:
Thank you all! That is EXACTLY how I felt. I don't have another credit card, but maybe my parents could loan us the money. If I was intending to pay it off with a tax return anyway, maybe they'd be receptive to that.

Do you know much about Care Credit? My husband is applying for the mortgage because I don't have any income and my CS is like 580 from medical collections. Maybe I should just give it a shot and apply. I'm sure I'll be denied, but at least I gave it a shot. Then I can ask my parents.

The credit requirements for the mortgage are 640. She's sick, and 11 years old, but not like 'death is imminent' sick. It's not worth it to take the chance.

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A few of my relatives have the card with 3.6K and 4K limits on it and the card is good if you can pay it off during the financing terms that they offer/doctors can apply to your account. I think 580 might be a bit too low especially if the income is low and the collections are quite new. Also I'm not sure how good GE is with recons. Perhaps if your parents can't loan you the money they can apply for the card or some other help. Good Luck and keep us posted!

[MovingForward_2012]

If you are not on the mortgage with your husband, I don't see any problems with applying for the care credit card if it is in your name only. I heard they approve anyone so I think your 580 score is a shoe in the door.

[fishbjc]

I love my Care Credit Card.  I keep it specifically for one of my cats who has bladder issues.  It's just helpful to have around. 

[tinuviel]

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@MovingForward_2012 wrote:
If you are not on the mortgage with your husband, I don't see any problems with applying for the care credit card if it is in your name only. I heard they approve anyone so I think your 580 score is a shoe in the door.

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+1. My DH got CareCredit as part of his rebuilding, at a time when his score was pretty low. I don't remember the exact score, but it was either the upper 500s or very low 600s. My understanding is that their approval criteria is quite relaxed. If you're not on the mortgage, it may be worth a shot.