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Hello All,
I am in confusion if I have to apply for new credit card or not. I have 3 Credit Cards - 2 Bank Of America - (1 CC with $14000, and another with $12000 = Total $26000) and another Best Buy Citi Credit Card with Limit of $1000. Right now I have a Credit utilization of 40% and 60% credit availability. And I am planning to buy a home in next 1 year. I am pretty much sure that I can pay off the balance by that time and will bring the Utilization below 5%.
So my question is, Is it good to apply the New Credit Card right now so that my utilization will be low till I apply for Mortgage Loan and I will carry very good Credit Limit which puts an impression on Lenders that I am carrying big credit limit and I am paying of everything on time and my Utilization is low too?
Right now my score is: EXP: 734 with 4 hard Inquiry,
TU: 698 with 11 Hard Inquiry(Hard Inquiry for Auto Loan becaue lender applied for loan to many banks) &
EQ: 720 with 5 Hard Inqury.
No Collection or late payments till now and the oldest account open in Dec. 2008.
Any suggestions please?
Thanks for your help in Advance!!!
Thanks 09Lexie for your reply!
So that means I have good number of Credit Cards and good credit limit and there will be a good chances of getting mortgage loan if I lower my Util. Right???
Thanks Creditaddict for reply!
I used my balance transfer option of 3.99% APR to pay of my other Credit Card having the 14% APR. So that I can save almost 10% APR on my $10k balance. I saw few cards like Discover It and Citi some card giving 0% APR on Purchases and Balance Transfers for 14 - 18 months. I thought to apply one of the card so that I can save that 3.99% APR too and I can pay off my cards even faster instead of paying APR. And thought It will be one only 1 Hard Inquiry left when I will apply for Mortgage loan.
What do you say? I may be very wrong about what I am thinking about applying New Card .
Alright In that case I will not apply any new card. And will wait for Bank of America & Citi card to increase my Credit limit Automatically.
Thanks a lot for the suggestion.
Thanks all for your time and quick responses. I really appreciate your help and suggestions!