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open credit card before mortgage?

New Contributor

open credit card before mortgage?

just curious, im getting a **bleep** ton of offers.  i get them mailed to me every day.  i get phone calls from my credit union.  mastercard, chase, discover bla bla....i have one credit card from wells fargo with a 5k limit.  it was my first card and i have treasured it.  my balance is always paid in full every cycle.

 

i am considering purchasing a house within the next 12 months.  im assumming its not the best idea to apply for a credit card within a month of applying for a mortgage?  should i take advantage of any of these cc offers?  would opening a credit card withing a year of applying for a mortgage hurt me? 

 

i was pre approved three weeks ago from bank of america for a nice mortgage but i havnt found a house yet.  the broker said even if i dont find a house until next winter i would stil be good assuming i dont **bleep** up any of my loan payments for my car/college/exiisting revolving credit accounts....

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Epic Contributor

Re: open credit card before mortgage?

 


330xi wrote:

just curious, im getting a **bleep** ton of offers.  i get them mailed to me every day.  i get phone calls from my credit union.  mastercard, chase, discover bla bla....i have one credit card from wells fargo with a 5k limit.  it was my first card and i have treasured it.  my balance is always paid in full every cycle.

 

i am considering purchasing a house within the next 12 months.  im assumming its not the best idea to apply for a credit card within a month of applying for a mortgage?  should i take advantage of any of these cc offers?  would opening a credit card withing a year of applying for a mortgage hurt me? 

 

i was pre approved three weeks ago from bank of america for a nice mortgage but i havnt found a house yet.  the broker said even if i dont find a house until next winter i would stil be good assuming i dont **bleep** up any of my loan payments for my car/college/exiisting revolving credit accounts....


If you are getting pre-approved on best terms with current portfolio, do NOT apply for anything until after you close.  If you are not getting best rates and they are saying because you don't have enough credit... then certainly apply

 

Message 2 of 4
Valued Contributor

Re: open credit card before mortgage?

Opening a new CC will drop your score but only very briefly. Anything over 6 months before a mortgage is good. Just remember to get your util down below 10% before the mortgage app since FICO scores determine your interest rate.


I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy18k, Amex Plat (60k H/B), Citi AA EWMC 25k
Message 3 of 4
Established Contributor

Re: open credit card before mortgage?

I agree with Credit.  If you have been approved for the best rates with your current profile, then do NOT apply for other credit cards and try not to run up any more debt.  Just keep paying off everything as you are doing now, and then as soon as you have closed on your new home feel free to apply. 


Starting Score: Eq: 662 Tu: 532 (03/02/2011) CH7BK 01/12/2009 Discharge
Current Score: Eq: 712 (02/03/2017) Tu: 717 (04/03/2013)
Goal Score: Eq: 760 Tu: 760

Wallet: PenFed Power Cash 25k | AMEX Blue Cash (AU) 49.5k | Cap One QSMC 26.5k | AMEX Platinum NPSL | LFCU Visa 10k
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