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What credit cards are right for me?

Established Member

What credit cards are right for me?

I applied for a mortgage and got turned down due to not having enough open trade lines. My credit scores as pulled by a lender are Experion 643 TU 649 Eq 646. He said my scores were fine I just needed to open 2-3 credit cards and charge small items on them every month then pay them off. I have had cc's in the past when I was younger and got in trouble with them I had 2 cap 1's one HSBC"best buy" and a Kays CC I lost my job while I had balances on each of them so I did not pay them I had to pay rent. So they all went to being charge offs in 2010 and showing 0 balances. Now this lender said I need to get 2-3 new credit cards he said it won't matter what the interest rate is because I am going to pay them off every month does this make sense to you guys. I know I can be strict with myself and only use them to buy lunch once a month then pay them off but will this help me. And what type of credit cards should I apply for since my credit history is "paper thin" as he put it. I don't want to go out and apply for a bunch of cards and just get declined due to not enough credit trade lines and just beat my credit scores into the ground. I am so confused right now won't applying for cc's just hurt my credit and how fast will it recover?

Experion: 643 lender pulled 2-8-2013
TransUnion: 649 lender pulled 2-8-2013
Equifax:646 lender pulled 2-8-2013
Message 1 of 8
7 REPLIES
Senior Contributor

Re: What credit cards are right for me?

Thats odd I thought you only needed a 620 for FHA, or have they changed it, I am thinking Chase Freedom or Discover Card
Message 2 of 8
New Contributor

Re: What credit cards are right for me?

You'll likely get mixed responses, but here's what I'd do. Apply for these, in this order:

Walmart Credit Card (not the Discover one; benefit is you get monthly TransUnion FICO for free)

AMEX Green Charge Card (requires you to pay the balance in full each month)

Chase (go to creditcards.chase.com and click "Your Special Offers" image on the left to see if you're pre-approved for any)

Capital One (use their card finder tool)

 

Remember, no matter what, pay them off so you dont get charged interest. Best of luck!

Message 3 of 8
Highlighted
Established Member

Re: What credit cards are right for me?

Thanks FHA does only have a 620 credit requirement The bank I was trying to use had overlays on there FHA requirements where I need 3 open trade lines. I now have my credit report the lender pulled and will shop it around and see if I can find a bank to work with me. If they all say no then I guess I will try these suggested cards and wait another year to reapply for a mortgage. Thanks

Experion: 643 lender pulled 2-8-2013
TransUnion: 649 lender pulled 2-8-2013
Equifax:646 lender pulled 2-8-2013
Message 4 of 8
Moderator Emerita

Re: What credit cards are right for me?


Shuckman00 wrote:

I applied for a mortgage and got turned down due to not having enough open trade lines. My credit scores as pulled by a lender are Experion 643 TU 649 Eq 646. He said my scores were fine I just needed to open 2-3 credit cards and charge small items on them every month then pay them off. I have had cc's in the past when I was younger and got in trouble with them I had 2 cap 1's one HSBC"best buy" and a Kays CC I lost my job while I had balances on each of them so I did not pay them I had to pay rent. So they all went to being charge offs in 2010 and showing 0 balances. Now this lender said I need to get 2-3 new credit cards he said it won't matter what the interest rate is because I am going to pay them off every month does this make sense to you guys. I know I can be strict with myself and only use them to buy lunch once a month then pay them off but will this help me. And what type of credit cards should I apply for since my credit history is "paper thin" as he put it. I don't want to go out and apply for a bunch of cards and just get declined due to not enough credit trade lines and just beat my credit scores into the ground. I am so confused right now won't applying for cc's just hurt my credit and how fast will it recover?


Hmmm. I am not sure why he would suggest you to open accounts unless you are not thinking about buying for a year. Also, assuming your credit report list no other baddies but the paid CA's - you should app for Walmart (free TU score and it will grow also there is only one app you do not have to designate store card versus Discover card). Are you a member of a CU? I would try for a cc with them or maybe one that is secured but graduates Like Bof A. 

 

This is all based on not intending on purchasing for a year. New credit (ESP for a rebuilder) when buying a home can cause an underwriter some pause.  FHA loans are easier to qualify for- were you looking for a conventional loan? Maybe that's why he wanted to boost your score - but again new credit takes awhile to affect a score positively.

 

Right now, I have more questions than answers.  

Message 5 of 8
Valued Contributor

Re: What credit cards are right for me?


09Lexie wrote:

Shuckman00 wrote:

I applied for a mortgage and got turned down due to not having enough open trade lines. My credit scores as pulled by a lender are Experion 643 TU 649 Eq 646. He said my scores were fine I just needed to open 2-3 credit cards and charge small items on them every month then pay them off. I have had cc's in the past when I was younger and got in trouble with them I had 2 cap 1's one HSBC"best buy" and a Kays CC I lost my job while I had balances on each of them so I did not pay them I had to pay rent. So they all went to being charge offs in 2010 and showing 0 balances. Now this lender said I need to get 2-3 new credit cards he said it won't matter what the interest rate is because I am going to pay them off every month does this make sense to you guys. I know I can be strict with myself and only use them to buy lunch once a month then pay them off but will this help me. And what type of credit cards should I apply for since my credit history is "paper thin" as he put it. I don't want to go out and apply for a bunch of cards and just get declined due to not enough credit trade lines and just beat my credit scores into the ground. I am so confused right now won't applying for cc's just hurt my credit and how fast will it recover?


Hmmm. I am not sure why he would suggest you to open accounts unless you are not thinking about buying for a year. Also, assuming your credit report list no other baddies but the paid CA's - you should app for Walmart (free TU score and it will grow also there is only one app you do not have to designate store card versus Discover card). Are you a member of a CU? I would try for a cc with them or maybe one that is secured but graduates Like Bof A. 

 

This is all based on not intending on purchasing for a year. New credit (ESP for a rebuilder) when buying a home can cause an underwriter some pause.  FHA loans are easier to qualify for- were you looking for a conventional loan? Maybe that's why he wanted to boost your score - but again new credit takes awhile to affect a score positively.

 

Right now, I have more questions than answers.  


The OP answered the questions in the previous post. The underwriter doesn't care about score, but needs to see more credit activity with open tradelines. At this point the OP has not shown their ability to handle credit responsibly for an extended period of time. It appears that home purchase has been pushed back approximately a year in order to age the tradelines. 

 

Perhaps a secured card would be useful for you? Or maybe see if your local credit union has any cards?


In My Wallet: Amex BCP (12/12) $50,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Prestige (4/16) $30,000

Last App: June 27, 2015
Message 6 of 8
Established Member

Re: What credit cards are right for me?

Yea!!!Smiley Happy  I got two unsecured credit cards thanks for all the help.

I got a Walmart credit card Limit $300.00  I am just going to use it for gas

And I got a Buckle credit card with a $300.00 limit just buy small things. So I got my 3 trade lines now so I am happy now in a year my LO says I will have no Issues getting a mortgage. And after the hit for the inq's my Fico score should start going up.

 

 Thanks

 

Experion: 643 lender pulled 2-8-2013
TransUnion: 649 lender pulled 2-8-2013
Equifax:646 lender pulled 2-8-2013
Message 7 of 8
Senior Contributor

Re: What credit cards are right for me?

YAY!! Buckle has some great clothing! and wal mart will show you love like never b4 JUST USE IT RESPONSABLY. Im sure you learned form your mistakes. Good luck and yes your FICO scores will rise up! Congratualations! 

Banking with CBofTV, and HSBC.
First Premier CC $500, Discover IT Secured $200, Neiman Marcus $1,500
Chapter 7 BK Discharged on 7/11/16
Equifax, Experian, Transunion, and ChexSystem are FROZEN.
Gardening Since 12/01/2017
Message 8 of 8