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New Member
itsgonnahappen
Posts: 2
Registered: ‎03-17-2013

Dilemma: Earned Excellent Credit - Purchaseing a Home, but Itching to Open a Highly Coveted Card

[ Edited ]


So after hammering away at my debt and working on my credit for years, I've finally achieved 780+ across all 3 credit bureaus... an achievement I thought was once only a dream. I can not tell you how ecstatic I am to have achieved this goal (started in the low 600s). Now originally, my goal was to simply achieve "Very Good" credit status to strengthen my mortgage application, however by constantly raising the bar...I find myself in a position receiving credit offers for cards that I once only imagined of seeing in my wallet...


Here's the situation... I plan to apply for a home loan as early as August (4 months down the line) and figure (perhaps, hopeful thinking) that I can take the hit to my credit score now if I'm going to go through with this. My concern is how hard that hit is going to impact my credit after getting dinged for a credit inquiry and reducing my average account age. Credit Karma simulates a 8 point deduction in my score, but I don't entirely trust their calculations...

At this time, I only have 2 credit lines open with one aged to over 1 year and the other at over 5. Additionally, I opened a student loan 3 months ago and another I'll open in June.

Ultimately, I find myself asking if it's worth owning that hard-earned coveted CC in exchange for a hit that could be perceived negatively towards a mortgage application down the line...

AMEX BCEP, CHASE SAPPHIRE, BARCLAY ARRIVAL WORLD MC, FNBO AMEX w/ NPSL, or a DISCOVER it (w/ 9.99% interest rate after 14 months with 0% on purchases and balance transfers) - I'm looking at you!

Any advice or direction would be appreciated! Let me know what you're thinking.

Moderator
webhopper
Posts: 7,230
Registered: ‎09-16-2011

Re: Dilemma: Earned Excellent Credit - Purchaseing a Home, but Itching to Open a Highly Coveted Card

With a thin file; you'll take a nosedive if any new accounts appear. Best advice is to not rock the boat. Wait until you close on the house and keys are in hand. then apply for everything; massive app spree because at that point it wont matter and more accounts to farm will leave you with a thicker file down the road. Those prime cards will still be there AFTER you close on the house.

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
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MyFICO Fitness Goal: 800s Club!



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Moderator
webhopper
Posts: 7,230
Registered: ‎09-16-2011

Re: Dilemma: Earned Excellent Credit - Purchaseing a Home, but Itching to Open a Highly Coveted Card

If you really cant wait; speed up the house search and start looking for the house now. Who knows; you might need that 4 months to find "the one"

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



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New Member
itsgonnahappen
Posts: 2
Registered: ‎03-17-2013

Re: Dilemma: Earned Excellent Credit - Purchaseing a Home, but Itching to Open a Highly Coveted Card

This is sound logic... now I do have credit card history dating back 10+ years in addition to a car loan, however those accounts have been closed or paid off. In your opinion, is this still too thin to rock the boat for a trophy card?
Moderator
webhopper
Posts: 7,230
Registered: ‎09-16-2011

Re: Dilemma: Earned Excellent Credit - Purchaseing a Home, but Itching to Open a Highly Coveted Card


itsgonnahappen wrote:
This is sound logic... now I do have credit card history dating back 10+ years in addition to a car loan, however those accounts have been closed or paid off. In your opinion, is this still too thin to rock the boat for a trophy card?

 

Yep. The ding from a new account can last for 6 months... the ding for inquiries will last for 12 months. You may have to have multiple pulls throughout the mortgage process... on my opinion its better to wait til after the mortgage and then go "all in" for every card.you've ever wanted. Mortgage; then super spree. I did this and got amex; chase amazon with NPSL; ge amazon; nfcu with 22k limit. Was declined several cards due to mortgage inquiries; but my post mortgage spree was.very successful.

Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



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Established Member
Layered
Posts: 33
Registered: ‎04-09-2013

Re: Dilemma: Earned Excellent Credit - Purchaseing a Home, but Itching to Open a Highly Coveted Card


webhopper wrote:

itsgonnahappen wrote:
This is sound logic... now I do have credit card history dating back 10+ years in addition to a car loan, however those accounts have been closed or paid off. In your opinion, is this still too thin to rock the boat for a trophy card?

 

Yep. The ding from a new account can last for 6 months... the ding for inquiries will last for 12 months. You may have to have multiple pulls throughout the mortgage process... on my opinion its better to wait til after the mortgage and then go "all in" for every card.you've ever wanted. Mortgage; then super spree. I did this and got amex; chase amazon with NPSL; ge amazon; nfcu with 22k limit. Was declined several cards due to mortgage inquiries; but my post mortgage spree was.very successful.

A+ advice

Contributor
rebuildingmission2013
Posts: 77
Registered: ‎04-15-2013

Re: Dilemma: Earned Excellent Credit - Purchaseing a Home, but Itching to Open a Highly Coveted Card

pass on the card and secure your home first. 


10/01/2012 STARTING FICO SCORES: EQ 585 TU 598 EX 539
09/12/2013 CURRENT FICO SCORES w/ 9 REVOLVING TLs = $4,550 + INSTALLMENT TL: $23,300
EQ 598= AAoA=10m, UTIL=43%, 12m INQ=22, COLL=0, PUB REC=0, MISS PAY=0
TU 644 =
AAoA=1yr 8m, UTIL=46%, 12m INQ=19, COLL=0, PUB REC=0, MISS PAY=0
EX 614 = AAoA=3 yrs 11m, UTIL=63%, 12m INQ=17, COLL=0, PUB REC=0, MISS PAY=0
04/01/2014 GOAL FICO SCORES: 720s = AAoA=+7m, UTIL ≤ 9%, 12m INQ ≤ 6, COLL=0, PUB REC=0, MISS PAY=0
Valued Contributor
thom02099
Posts: 1,284
Registered: ‎08-30-2011

Re: Dilemma: Earned Excellent Credit - Purchaseing a Home, but Itching to Open a Highly Coveted Card

+1 to what everyone else said.  Keep in mind, as you indicated, you've got that student loan and the 2nd one that you're going to open.  That will also create a ding, you're going to lose points with that new loan.  I would suggest mortgage shopping NOW, get with a trusted broker and see where you are interest rate-wise.  With that excellent score NOW, you'll get the best possible rate.  Get it now, see what you can do to lock in a rate, then FIND THAT HOUSE!  Now is the time to strike for the house.  Depending on what real estate market you're in, it could take a long time to find the house you want, or you could find it right away.  You'll be surprised how quickly 4 months goes by when shopping for real estate.  And once you find it, the process seems to just drag on and on. Mortgage lenders will also pull your credit reports (all 3) several times during the process, to include just before closing.  Get going with it now!  Those cards you want? They're going to be there when this is all over, and they may be offering better deals in 4-5 months.  You can apply for the primo cards AFTER you've closed but before the mortgage starts reporting. 

 

Good Luck to you!

 

ONWARD AND UPWARD ! !

AMEX Gold NPSL / AMEX Zync NPSL / AMEX Blue Cash Preferred $14K / Bank of America Cash Rewards Signature Visa $15K / Merrill Lynch Plus Signature Visa $15K / Chase Sapphire Preferred Signature Visa $10K / J P Morgan Select Signature Visa $10K / Chase Slate Visa $6K / CITI Diamond Preferred MasterCard $13.2K / Discover IT $10.5K / IberiaBank Select Visa $8K / 1st Command Bank Platinum Visa $7.5K / Wells Fargo Platinum Visa $7.5K / Home Depot $9.7K / Lowes $10K

EX = 765 EQ = 743 TU = 825 Mar/2014
Frequent Contributor
GaTech
Posts: 374
Registered: ‎02-10-2013

Re: Dilemma: Earned Excellent Credit - Purchaseing a Home, but Itching to Open a Highly Coveted Card

I think you should go on an AP spree after you close on your brand new house/mortgage. Think of it as a reward for the hard work you put into getting a score above 780 across all three credit bureaus :smileyvery-happy:
As of 1/10/2014 EX FICO - 748. EQ FICO - 728. Trans FICO - 755

WellsFargo - $3,000 AMEX BCE - $18,000 Chase Freedom - $4,000




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