Mortgage Loans

[enning]

I'm sitting around a low 600 and I'm looking to apply for a mortgage by late next month. Would opening a secured card for $1000-$1500 30-60 days before applying throw up any flags for a mortgage pre-approval and do you think this will help get me up to 620+?

Just for additional info, I have 2 student loans, a car loan, 1 store card with a 350 limit and I'm an AU on a Cap1 card for $500.

[MarineVietVet]

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enning wrote:
I'm sitting around a low 600 and I'm looking to apply for a mortgage by late next month. Would opening a secured card for $1000-$1500 30-60 days before applying throw up any flags for a mortgage pre-approval and do you think this will help get me up to 620+?

Just for additional info, I have 2 student loans, a car loan, 1 store card with a 350 limit and I'm an AU on a Cap1 card for $500.

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Hi there.

I don't comment very often on this board because I'm certainly not a mortgage expert but recommendations are made all the time that you not apply for any new credit for 6-12 months before a mortgage application.

[tooleman694]

Yes you should not apply, but that doesn't mean you can't. You will probably have to write a letter explaining the account.

Opening a new account will put you at 3 credit cards and will probably give you a little boost. If it were me I would open 2 more and wait for them to report before you apply.

This would most likely help your score instead of hurting. Typically you dont open new accounts because it can hurt you.

[Sunshine15]

I was thinking of doing the same thing.