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Established Member
tl9606
Posts: 20
Registered: ‎05-02-2009
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credit card advice - looking to purchase house soon and don't want to hurt credit scores

need some advice here I am getting married next month and we are looking to buy a house afterwards so I don't want to hurt my credit score. 

 

I have Ameriprise Brokerage account which has an AMEX Gold card that was part of the package, but since Ameriprise and AMEX are no longer together I will have to pay an annual fee for the AMEX, so i will probably close that account and get the new Ameriprise Mastercard that has no annual fee and a low rate of 7% (the offer for no annual fee is good until September 1st).

 

My cards and their limits are:

AMEX GOLD - balance paid in full monthly

BOA Visa with 12,000 limit - 9.24% rate (10,000 in debt on this cardat 1.99% until february)

Citi MC with $10,440 limit - 9.99% rate

BOA MC with $8500 limit - 5.90% rate

Discover with $3500 limit - 12.99% rate

Chase VISA with $2850 limit - 15.24% rate

 

 

Here is my question, if I apply for the new card and say I get a limit of $10,000, would it hurt me to close the Discover and Chase Visa cards with the low limits and higher rates that I hardly use.  I would be getting a better ratio of my revolving balances to my credit limits, but i would be opening a new account and closing 2 accounts..  My credit scores are 765 Equifax and 744 TransUnion and i don't want to lower then before we start looking for mortgage rates..any advice would be greatly appreciated!

 

 

Thank you!

Frequent Contributor
ocheosa
Posts: 372
Registered: ‎06-15-2007
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Re: credit card advice - looking to purchase house soon and don't want to hurt credit scores

[ Edited ]
If you are buying within 6 months I would not make any changes (opening/closing accounts). IMHO, the best move to make would be to pay down some of that high balance. Its at 83% right now, try to get it to min 60% before pulling credit reports for your mortgage.
Message Edited by ocheosa on 07-29-2009 02:37 PM
01/04/10 TU 778 EQ 731
08/05/09 TU 762 EQ 722
02/12/09 TU 722 EQ 704 EX 690
EQ sensitive to inqs & student loan.
Senior Contributor
smallfry
Posts: 4,831
Registered: ‎04-20-2007
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Re: credit card advice - looking to purchase house soon and don't want to hurt credit scores

I agree. Do nothing. No credit union cards yet huh? I would pass on the Ameriprise when the time comes and get into one of the bigger CU's after you get a mortgage.
Established Member
Posts: 122
Registered: ‎04-27-2007
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Re: credit card advice - looking to purchase house soon and don't want to hurt credit scores

If you 'both' have decent scores, I would pay down what you have and not apply for new cards at all until you have your mortgage in place.  If you apply and get turned down for 'any' reason, which you probably would not, but the rules have changed alot, that would hurt your score, and you don't need that flaw on your report for mortgage lenders to see.  Good luck.
Frequent Contributor
ocheosa
Posts: 372
Registered: ‎06-15-2007
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Re: credit card advice - looking to purchase house soon and don't want to hurt credit scores


dee wrote:
If you 'both' have decent scores, I would pay down what you have and not apply for new cards at all until you have your mortgage in place.  If you apply and get turned down for 'any' reason, which you probably would not, but the rules have changed alot, that would hurt your score, and you don't need that flaw on your report for mortgage lenders to see.  Good luck.

 

dee,

 

FYI, the only thing the lender would see is an inquiry. They cannot tell whether or not you were turned down. Some accounts take awhile to show on your credit reports. The issue would be there is a possible new account out there...with a possible balance. Which of course could change your DTI Ratio.

01/04/10 TU 778 EQ 731
08/05/09 TU 762 EQ 722
02/12/09 TU 722 EQ 704 EX 690
EQ sensitive to inqs & student loan.
Established Member
Posts: 122
Registered: ‎04-27-2007
0

Re: credit card advice - looking to purchase house soon and don't want to hurt credit scores

I was told if you apply for a loan and get turned down, it will show up as a decline.  Maybe not 'that' day, but it will show eventually maybe.  If they just go to see what your score is, then it would not, since you did not apply yet.  That is what I also heard.   
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MarineVietVet
Posts: 14,902
Registered: ‎07-14-2009
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Re: credit card advice - looking to purchase house soon and don't want to hurt credit scores


dee wrote:
I was told if you apply for a loan and get turned down, it will show up as a decline.  Maybe not 'that' day, but it will show eventually maybe.  If they just go to see what your score is, then it would not, since you did not apply yet.  That is what I also heard.   

I've never been clear on this either. How about opinions from the "gurus"?

 

 

Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

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Epic Contributor
haulingthescoreup
Posts: 28,098
Registered: ‎04-01-2007
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Re: credit card advice - looking to purchase house soon and don't want to hurt credit scores


marinevietvet wrote:

dee wrote:
I was told if you apply for a loan and get turned down, it will show up as a decline.  Maybe not 'that' day, but it will show eventually maybe.  If they just go to see what your score is, then it would not, since you did not apply yet.  That is what I also heard.   

I've never been clear on this either. How about opinions from the "gurus"?

 

 

Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".



You won't see a denial for an app on your reports. Another lender can put two and two together by seeing the inq and noting that you don't seem to have whatever you app'd for, but that's it.

I applied for a Kohl's card and was denied. The inq displayed for two years, but there was never any notation of denial on any of my reports.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Member
tl9606
Posts: 20
Registered: ‎05-02-2009
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Re: credit card advice - looking to purchase house soon and don't want to hurt credit scores

does having a high utilization on one card harm you? i tranferred all my balances to one card for the promotional rate for the convenience of making one payment and i was under the impression that they only looked at your overall utilization is this wrong?
Established Member
tl9606
Posts: 20
Registered: ‎05-02-2009
0

Re: credit card advice - looking to purchase house soon and don't want to hurt credit scores

what are some of the bigger CU's? thanks!

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