Wife only has a secured card $300 limit and a car loan from NWFCU

[ac921ol]

She has a card with a limit of only $300 and has a car loan from a credit union. She has PIF every month for the past 10 we are looking for a mortgage loan sometimes in 2014 later half.

The AF for her secured card kicks in December 31st should we apply for a card before then sometime in November when her 2 credit inquires drop off. Or is it a 100% horrible idea, I've read as long as it's not within 3-6 months of the mortgage loan app. What do you suggest?

[Revelate]

Honestly I'd go get a second card right now, I wouldn't wait a moment: get that inquiry aging as quickly as possible as well as many payments reported as possible by the time the mortgage comes around: she's sitting on a thinnish file and in this instance she may see an immediate bump in her FICO score with the second open revolving tradeline.

I'd keep the secured card as well, I'd pay the AF and keep going with it: make her history look as stable as possible going into the mortgage application and the longer the tradeline the more FICO likes it.

I don't know enough about mortgage underwriting to suggest whether you should get a third card as well: historically I think some lenders may want to see 4 tradelines on the credit report, but I don't know if that's the case now or not.  It would be a marginal improvement in her FICO if any (though it'd be a positive w/in 6 months IMO for her) but it may clear an underwriting hurdle by getting her into thick file status.

[primeonetx]

The prior post is correct and I am a lender and agree that you should get that other card immediately, if at all.  As a lender, I can answer underwriting questions.  Sometimes we get valid scores with two lines of credit, sometimes not.  You don't need more than three lines, for sure.  Since you're talking about the second half of 2014, inquiries will not impact your score.  We only go back 120 days.

Scott Drescher

[DallasLoanGuy]

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@ac921ol wrote:
 What do you suggest?

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when we look at tradelines, we look at age. we ignore them if they do not have 12 months history.

we can verify rent though.... that can be an alt tradeline

.

[ac921ol]

well how do I go about that, shes been paying me $450 a month for the past 3 years towards my part of the mortgage. Is there anyway I can backdate it to when she first started, what do you guys suggest with that.

so what I've gotten is, Open a new card ASAP. 2nd She might be able to use the money shes been giving me a month as rent, (need more details if thats possible)

[Startome]

I'd imagine you'd need a legal lease or rent document for that, something of that nature. Just saying she's been paying you without any documentation will probably not be as easily accepted.

[ac921ol]

Could I print a lease and have it backdated, its not like she hasnt been paying me rent on  the home I own with my brother. I understand after we got married Sept 7th, it wouldnt be considered rent (Its not like Im lying about it, she has been giving them to me, and shes been giving it to me in check form as well)

[DallasLoanGuy]

a lease doesnt help you when it is between private parties.

cancelled checks is solid proof