Should I get my second card yet?

Anonymous · ‎10-06-2014

I have one credit card that I got two months ago. In eight months I plan to be applying for a house as I'll have more than enough saved for the down payment, PITI, loan insurance, etc.

I forgot the whole credit thing in buying a house and am trying to figure out how to raise it quickly. I have gone from the 550's in June to mid 660's now.

Of course I'm using my current SECURE credit card just fine; I'll buy a coffee on it (300$ limit,) and pay it off in a few days, repeat. I wait until the balance has shown a change on my credit report before paying off my card.

I don't /need/ any credit cards... I just need better credit.

I also bought a second vehicle last month (or at least, put in the down payment and got a loan.) This time the vehicle loan is with the company I plan to buy a house through to show them personal history and that I pay on time.

I am already getting offers from Capital One to get a standard credit card (the platinum.) Should I take it? I'm pre-approved and shouldn't have issues getting it.

FinStar · ‎10-06-2014

Since applying for a mortgage is on the short horizon I would hold off.

Shock · ‎10-06-2014

Is your current secure card thru Cap1? See if you can graduate it..talk to the EO.

Anonymous · ‎10-06-2014

@FinStar wrote:
Since applying for a mortgage is on the short horizon I would hold off.

+1

But if you DID want to apply for something. Get a store card for credit mix.

FinStar · ‎10-06-2014

@ Shock... IIRC, Capital One secured CCs do not graduate.

red259 · ‎10-06-2014

@FinStar wrote:
Since applying for a mortgage is on the short horizon I would hold off.

+1 Don't be applying for anything else at this point. The mortgage is the most important thing.

;
Starting Score: EQ: 714, TU 684
Current Score: EQ: 725 7/30/13, TU 684 6/2013, Exp 828 5/2018, Last App 8/5/17
Goal Score: 800 (Achieved!) In garden until Sepetember 2019

CreditDunce · ‎10-06-2014

@Anonymous wrote:
@FinStar wrote:
Since applying for a mortgage is on the short horizon I would hold off.
+1

But if you DID want to apply for something. Get a store card for credit mix.

8 months? That is just not much time to build a credit history. I would probably add a second secured CC. For FICO 04/98, the credit mix inside of revolving is Credit Union and banks. To maximize your score you want at least one credit union CC and one bank CC. However, the points gained from having both vs having two bank cards is very small. If you currently have a bank secured CC, I would look at SDFCU since you can get one of their secured CC's with only a SP.

Perhaps, you could open a shared secured installment loan, too. That would give you two installment loans. Right before the mortgage app, you could pay off the car loan for DTI considerations.

But 8 months is just not enough time to build much credit history for a mortgage. I would certainly plan of having a good bit more than 20% down payment. But maybe I am being too pessimistic. What has the bank/CU that you plan on getting the mortgage told you? Have they given you any advice on what they would like to see?

Shock · ‎10-06-2014

yeah...but YMMV, as always