Should I apply for new credit?

[bassethoundmom]

I read previous posts that refer to FHA loans wanting to see 3 tradelines of credit.  Currently I have a car loan and one cc. I have a few other old car loans showing as positve but those are closed so I doubt they count? The simulator says that applying for and receiving new credit will result in my score of 643 going to a range between 633-653.  I'm trying to get to 660 and I do have three collections to be removed in the next month.  If I go down to 633 how long does it take to recover?  Is it riskier to have new credit or to only have 2 tradelines in the FHA's eyes?

[ShanetheMortgageMan]

Automated underwriting can approve with less than 3 active trade lines so I'd give that a shot first... if you don't get approved then you'd need to provide 3 trade lines at 12 months each... non-traditional credit, such as utilities, insurance, cell phone, etc., can count towards teh 3 trade lines at 12 months each requirement which manually underwriting requires.

[Anonymous]

If the collections on your report are your only "baddies" and they are all being removed then you should jump up to 660 no problem.

In addition - you should get a boost from your second bank card or a first store card - but applying for new credit is usually not a + to mortgage lenders.