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Trying to Build My Credit

New Member

Re: Trying to Build My Credit

I'm so confused!  I've read (on this board) that it's not advisable to apply for credit cards when also applying for a mortgage loan, but the mortgage broker/lender that I'm working with advised me to go out and try to open a few credit cards while we are in the process of a rapid rescore to try and increase my credit score to 620+.  Currently, I'm at 603 with only one trade line on all 3 reports (a student loan) and 5 negative lines paid and disputed.  He advised me to open at least 2 or 3 revolving lines of credit.  Am I being ill advised?

"http://ficoforums.myfico.com/html/assets/challenge.png" border="0">Starting Score: 603
Current Score: 603
Goal Score: 620


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Valued Contributor

Re: Trying to Build My Credit


kirkland500 wrote:

I'm so confused!  I've read (on this board) that it's not advisable to apply for credit cards when also applying for a mortgage loan, but the mortgage broker/lender that I'm working with advised me to go out and try to open a few credit cards while we are in the process of a rapid rescore to try and increase my credit score to 620+.  Currently, I'm at 603 with only one trade line on all 3 reports (a student loan) and 5 negative lines paid and disputed.  He advised me to open at least 2 or 3 revolving lines of credit.  Am I being ill advised?


Well, I don't know about this broker, but it sounds to me he/she is desperate to get you to 620 and is willing to try anything.. 

 

No revolving credit is killing your score, it is such a huge factor.., so I actually agree with your broker on this in principal.. I just don't know how FAST they can really get it reporting with a rapid rescore... it's one thing to rescore new balances, but I am not so sure about how fast new accounts will pull down..

 

The only thing is, most lenders won't lend to someone with brand new revolving accounts.. is this broker employed by a bank or is he/she and outside broker?

 

This is a pretty dodgy situation.. I can see both sides of the coin.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
New Member

Re: Trying to Build My Credit

Hi Scott!  I reached 620 and quailified for the FHA loan that my broker was trying so diligently to qualify me for.  I'm now in the funding and recording stage of escrow.  My credit score still needs to improve to the 680s in order to qualify for a conventional loan refinance (to remove the MIP).  In my last conversation with my broker, he advised me again to start applying for credit cards (establish revolving credit) after 2-3 months of my first mortgage payment.  He said that the new mortgage payment will help build my credit and likely gain approval from credit card companies.  I haven't read anything advising this practice on this site; have you ever heard that advise before?

"http://ficoforums.myfico.com/html/assets/challenge.png" border="0">Starting Score: 603
Current Score: 603
Goal Score: 620


Take the myFICO Fitness Challenge