Credit Cards

[RedThunder]

Should I apply for a new credit card? I'm looking to get a

mortgage in Feb or March of 2013. My current score is 776

(TU-Fico).

How would this affect my score? The fico simulator says not

too much, others like Credit Karma say a lot.

I really don't need another card, but the two I have are

junk cards. They used to be orchard, now Cap 1 and have

very low limits ($500, $300) and high annual fees ($79,

$39).

I have no other debt. No Auto loans, no mortgage, no

student loans, etc. My AAOA is 3yrs 3 months and my Oldest

tradeline is 4 yrs 10 months. I have no negative

tradelines. (came a long way in last 6 months, thanks to

you). Utilization is 2% but with such low limits can change

quickly.


I'm keeping the Cap 1's until I get a mortgage then will

likely dump them. So, should I apply for new credit at this

time or not? Any recommendations for a good card?

[castlefox]

IMO you shouldnt apply for another credit card because you dont want any inquries on your credit report if your making a big purchase like a house.

Keep your untilization down!   Go online and pay down your credit card early so that when the statement cuts you have a lower utiilzation percentage.

[Tommy5746]

Keep your UTIL down and dont app for anything!!! Garden what you have

[youngandcreditwrthy]

With those scores and aaoa, I'd say apply for a prime card. One card won't hinder mortgage approval imo.... But make sure "reported util" is at the level where you have it now.

I do not have a mortgage, but from what I have seen, mortgage rates won't get lower after your score is 720... So a little bump from say 776 to 750 doesn't seem like it'd even have an impact.

Downside is that you may get a low limit card, say $1,000 from a prime lender cause your limits are currently so low (no offense).

IF you wait until the mortgage is on your report, youre risking that your score could go much lower (still prime -like 720-740'ish), but you'd prob get a much higher limit upon approval.
Again, just my opinion... But I've done a substantial amount of research.
And opening one or two prime cards wouldn't keep you from getting a mortgage assuming all other financials are in line...
Anywho...
I'd app for something like Chase Freedom...your score reflects your fiscal responsibility imo.

:-) best wishes!

[codimom]

If you do not NEED another card, then don't apply for another card or any other form of credit before you app for  your mortgage.
AFTER the mortgage closes, then app for a prime card and close those with the AFs.  My feeling is the cleaner your file before a mortgage app the better.

[CruzImperial]

I would apply right after the closing date

[Cdnewmanpac]

1. If you are planning for a conventional mortgage, there is an interest break at 760, so dropping below that might cost you. 

2. Given your timeline, you should either apply for a card right now, or not until you get your mortgage. Generally, underwriters don't want to see any activity in the 6 months preceeding your application. So right now would be ok from that standpoint. However, if it lowers your aaoa and adds an inquiry, it might drop you below 760, so:

3. If there are things you are trying to do financially that you are unable to do because you do not have credit card X, then go for it. For example, if you are planning an around-the-world trip or are flying once a week, you are leaving money on the table with your current cards. But if you just want one for the long term, you are better off keeping your current score, getting the best mortgage rate, then apping to your hearts content the day after closing.

[LS2982]

---

RedThunder wrote:

Should I apply for a new credit card? I'm looking to get a

mortgage in Feb or March of 2013. My current score is 776

(TU-Fico).

How would this affect my score? The fico simulator says not

too much, others like Credit Karma say a lot.

I really don't need another card, but the two I have are

junk cards. They used to be orchard, now Cap 1 and have

very low limits ($500, $300) and high annual fees ($79,

$39).

I have no other debt. No Auto loans, no mortgage, no

student loans, etc. My AAOA is 3yrs 3 months and my Oldest

tradeline is 4 yrs 10 months. I have no negative

tradelines. (came a long way in last 6 months, thanks to

you). Utilization is 2% but with such low limits can change

quickly.


I'm keeping the Cap 1's until I get a mortgage then will

likely dump them. So, should I apply for new credit at this

time or not? Any recommendations for a good card?

---

No, see bolded.

Close on your mortage before you apply for any new credit.

[youngandcreditwrthy]

I still disagree.... Check bankrate.com and even this site myfico.com... To see that the lowest int rate on a mortgage cuts off around 720... Again, I have no mortgage, but I do know that lenders like to see high limits with low usage, and your current cards don't cut it... Of course, too much cred would hinder approval for a mortgage, but with you... This is not the case.

Ask your banker if you don't believe me :-)