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Member
RedThunder
Posts: 7
Registered: ‎07-14-2012
0

Should I apply for a new higher limit card

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?

Regular Contributor
castlefox
Posts: 227
Registered: ‎12-09-2010
0

Re: Should I apply for a new higher limit card

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.

MyFICO score- Equifax - 12.03.11 - 780 Experian 12.03.11 - 763
(FAKO Scores) EXP PLUS Score Dec 2011. 748
Advanced Risk Score 2.0 (NextGen) 793 Dec 2010
Vantage Score (2011) MAR = 771 Jun = 771 Sept= 788 Dec= 773
2012 MAR = 782 JUN=783 Dec = 789
2013 Mar-796 Jun-799 Dec- 797
Regular Contributor
Tommy5746
Posts: 440
Registered: ‎02-08-2012
0

Re: Should I apply for a new higher limit card

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

Goal: 700 and an Amex Card!

Chicks Dig Guys With Good Credit :smileyhappy:
Senior Contributor
youngandcreditwrthy
Posts: 6,242
Registered: ‎08-16-2012
0

Re: Should I apply for a new higher limit card

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!
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| Wmt Discover $12.5k | BR Visa $12.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Arrival $12.7k | Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Frequent Contributor
codimom
Posts: 395
Registered: ‎09-08-2010
0

Re: Should I apply for a new higher limit card

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.

Back in the garden!
App free since 23Oct2012 reset to 27Aug13 and reset again 4nov13
Established Contributor
CruzImperial
Posts: 869
Registered: ‎07-04-2012
0

Re: Should I apply for a new higher limit card

I would apply right after the closing date
Fico Scores: . Walmart TU 748 . Garden 8/19 2014 .

Cap One Journey 500 | Discover IT 500 | GE Home Design 5.6k | GE HHGREGG 5k | Amex Zync NPSL | Amex BCE 6k | Citi Forward 4.2k | Citi Dividend 3k | GE BrandsMart 1k | GE Lowes 8.5k | Discover Walmart 7.5k | Barclays Apple 2.5k | BoA CR 2.7k | CSP 7.2k | Platinum Prestige 5k | IT Chrome 4k | Slate 2.3k |
Established Contributor
Cdnewmanpac
Posts: 766
Registered: ‎01-16-2012
0

Re: Should I apply for a new higher limit card

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.

In wallet: Ink Plus 10k, AMEX TE 25k. In bag: CSP 16k, USAA WMC 15k, Hyatt 13k, United MPE 12k, AMEX HHonors 3k. In SD: Cap 1 QS 5k, Discover IT 7k. FICO 08 says my EQ is now 844, was 510 in 2010.
Mega Contributor
LS2982
Posts: 15,436
Registered: ‎04-09-2011
0

Re: Should I apply for a new higher limit card


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.

 




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Senior Contributor
youngandcreditwrthy
Posts: 6,242
Registered: ‎08-16-2012
0

Re: Should I apply for a new higher limit card

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 :-)
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| Wmt Discover $12.5k | BR Visa $12.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Arrival $12.7k | Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k

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