Stuck on Additional Credit

[Darneshia]

Hello Everyone,

I am stuck and need some advice. I have been cleaning up my credit for over a year and have done everything I know to do. Here is my problem. I am trying to get my credit score to at least 640, currently at 620. Should I apply for a credit card to have a another revolving credit line? I am not sure because I am in the middle of acquiring a mortgage.

Open Credit - good

Car Payment  - Open since 2010 - on time payments

Student loan -open since 2004 -  reported 90 days late in Dec 2011 - on time payments

Personal loan  - open since Nov 2012 - on time payments

Closed/Collections

GMAC - Charged off - settled for less amount  - Resolved Nov 2012

Capital One Card  - 30 day late - April 2012 - on time payments going forward

ReVL Collection - paid September 2012

Thanks!

[chevyman]

Try to GW lates ur DTI might be high

[Anonymous]

If you are in the midst of the mortgage process you will not be wanting to open any new TLs. For now, work on your UTIL to make sure your card reports below 10% but above 0%. Send GWs for all the other baddies but especially the most recent 30-day as the mortgage UW may raise an eyebrow to this.

[DiabolicallyRandom]

Do you currently have any revolving credit?

[Anonymous]

Also: check with your lender to see if the new TL will affect the UWing of the mortgage. Diabolically: I think the OP indicated there is one revolving account? If so and the additional TLs would not harm the mortgage process then perhaps opening one or two more might be in order.

Many report best results with three CCs as this increases your total available CL thereby helping to reduce UTIL. Two or three revolving credit TLs along with your mix of credit and good payment history will go a *long* way in helping to bump up FICO. But again, if you are already in the middle of the mortgage app process check with your lender to ensure new TLs will not adversely affect the UW process.

Next: GW the heck out of those baddies!

[Crossdivided]

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@chevyman wrote:
Try to GW lates ur DTI might be high

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actually, DTI is strictly an UW process...it doesnt factor into the FICO model for scoring.

its more like:

step #1: check credit itself (score, manual review, etc)

step #2: figure DTI to make sure you can afford the payment

my recommendation in this situation, assuming you just want a revolving TL, and not looking for a specific TL, would be to use the shopping cart trick for one of the WFFNB backed stores (vic secret, express, etc), or the walmart trick (GE Cap Bank). that way you could add a revolving TL with just a soft pull.

[Darneshia]

I don't have any revolving credit. The Capital One Credit Card is closed.

[Anonymous]

If you have no revolving credit ... then you need it as UTIL is a major part of FICO scoring. I believe there's a "FICO Scoring" post either up above or in another one of the boards. Check that out to learn a bit more on what factors into the scoring model. Also, it's good reading

[DiabolicallyRandom]

How soon are hoping to get a mortgage?

[Darneshia]

By June of this year.