Credit Cards

[valley_man0505]

I have been getting my scores up in order to apply for a mortgage.  I am finally at the point where my scores could probably get me qualified for a new CC, but I do not want to apply for anything else until after I get a mortgage.  Once I get that mortgage, however, I do want to have a CC for emergencies--I have had too many instances where I am all caught up on bills and ready to start doing some major saving, and then my car breaks down or something stupid like that.  It would be nice to absorb these unexpected expenses a little with a CC (I do have a secured CC now, but I need to keep room on here for work travel expenses, so this can't be used as an "emergency card").

I guess what I am getting at is how much will the new mortgage initially lower my score and how many on-time mortgage payments will it take to see the score start going back up?

Currently:  TU 561, EQ 626, EX 606 (scores have been going up rapidly in the past couple months due to some "cleaning up" of my reports, so I expect those scores to be even higher next month)

Accounts:  Student Loan:  ~$15,000 balance (never late)

                   Secured CC:  $300 balance ($1100 CL--never late)

                   Auto Loan:      $2800 balance (never late--2 years into loan)

Score is low due to a few baddies from about 5 years ago.

[WisingUp1]

I was wondering the same thing. We  were just approved for a mortgage loan through Bank of America on a 155k house. I however do still want a Amex...just don't know how long to wait after the mortgage to apply for one.

[chartley3]

As soon as you sign your mortgage papers you can apply for as many CC's as you want.

[haulingthescoreup]

The mortgage most likely won't report right away, even if the inqs do. You can apply that evening, after the mortgage funds.

[valley_man0505]

I know that I "can" apply for as many as I want once the mortgage is squared away, but what I was wondering is how long it will take for me to expect to actually be approved.  I know that my mortgage will initially cause a dip in my score, and my score is already marginal for getting approved for any CC's.

[cheddar]

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valley_man0505 wrote:

I know that I "can" apply for as many as I want once the mortgage is squared away, but what I was wondering is how long it will take for me to expect to actually be approved.  I know that my mortgage will initially cause a dip in my score, and my score is already marginal for getting approved for any CC's.

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The point hauling was making above actually addresses this question directly.

Your new mortgage will not report right away.  Once the mortgage funds, and before it reports, you will be able to apply for a CC, before the mortgage causes your score to drop (since it will not have reported yet).

Edit to add: You probably don't want an Amex in that situation, though, because they will notice the mortgage once it reports, and have been known to take AA for new mortgages showing up.

Message Edited by cheddar on 06-18-2008 08:06 AM

[valley_man0505]

Thanks hauling and cheddar.  Hauling must have been writing his post as I was writing mine cuz I his wasn't there yet when I wrote mine.  I never thought about the delay in reporting for the mortgage--good point!

[haulingthescoreup]

It's amazing the timing moves that you learn! Good luck.