The short version is I was denied a home loan by 2 different lenders. I only had 1 credit card and have no student loans, car loans etc. My score was about 30 points shy of qualifying. I have a foreclosure that is set to fall off my report next spring. (7 years is long enough) I also had some issues with my credit because of a private student loan I cosigned on that is in default as of 10/2009 . All those things disqualified me for a loan and since I couldn't prove the loan owner is paying the loan my dti was 46% with the student loan added in. Long story short I met with a banker through wellsfargo. We went through my whole credit all 3 to see what was dragging down my score. Found out it was mostly the foreclosure and student loan. He suggested I apply for a 2nd credit card since I only had 1. I applied and was approved right away for a 4k limit. Im not sure why such a limit but I was excited. I received a letter in the mail today detailing the transunion report they used.
Serious delinquency
Time Since delinquency is too recent or unknown
Number of accounts with delinquency
No recent revolving balances.
Im really curious what the no recent revolving balances means. I charge gas on it once a month then I pay it in full. I have never missed a payment on credit card.
I would like to buy a house by next fall. Since I will have had the card well over 6 months by then and the foreclosure will have passed the 7 year mark that spring.
Should I apply for a 3rd credit card or is 2 enough?
My transunion score according to this report is 630.
Any help would be greatly appreciated.
