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Suggestions for Next Steps

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Anonymous
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Suggestions for Next Steps

Thanks to reading and applying suggestions in this forum, I've been able to raise my Fico scores to 755ex, 741tu, and 750, eq. I have a secured Credit with PNC bank with a zero balance and $2,500.00 limit. I also have an old 7 % high rate mortgage with Wells Fargo I would like to refinance. I'v had two (2) hard credit inquiries in the past two years with the most recent one in 12/2014. My concern is my FICO scores taking a major hit if I 1) apply and convert the secured PNC Bank Card to a regular PNC Credit Card or I apply to refinance my high rate mortgage. Given my current FICO scores, what would be the recommended best next step that will harm my FICO scores the least?

Message 1 of 6
5 REPLIES 5
Revelate
Moderator Emeritus

Re: Suggestions for Next Steps


@Anonymous wrote:

Thanks to reading and applying suggestions in this forum, I've been able to raise my Fico scores to 755ex, 741tu, and 750, eq. I have a secured Credit with PNC bank with a zero balance and $2,500.00 limit. I also have an old 7 % high rate mortgage with Wells Fargo I would like to refinance. I'v had two (2) hard credit inquiries in the past two years with the most recent one in 12/2014. My concern is my FICO scores taking a major hit if I 1) apply and convert the secured PNC Bank Card to a regular PNC Credit Card or I apply to refinance my high rate mortgage. Given my current FICO scores, what would be the recommended best next step that will harm my FICO scores the least?


Welcome to the forums!

 

That is your only credit card?  Let a small balance report on it and then go refinance that mortgage.  Finances >>>>>>>> FICO and there's absolutely no reason to be carrying a 7% mortgage in this market.

 

FICO really doesn't matter in this case, get the house refinanced.  

 

After that's sorted I'd recommend going and opening at least 2 more cards, and then converting the PNC card later if you wish; short term negative, long term better to have a thicker file.

 




        
Message 2 of 6
Anonymous
Not applicable

Re: Suggestions for Next Steps

Sorry, I left out my other credit card info. I also have Credit Union Visa (4 years) $5,000.00 limit, zero balance, Sams Club (4 years), $5,000.00 limit, zero balance, and Paypal Credit (3 years) $3400.00 limit, zero balance.

Message 3 of 6
Anonymous
Not applicable

Re: Suggestions for Next Steps

You should refinance now that you have great scores before applying for more cards, which you seem to have a decent amount.

Message 4 of 6
Revelate
Moderator Emeritus

Re: Suggestions for Next Steps


@Anonymous wrote:

Sorry, I left out my other credit card info. I also have Credit Union Visa (4 years) $5,000.00 limit, zero balance, Sams Club (4 years), $5,000.00 limit, zero balance, and Paypal Credit (3 years) $3400.00 limit, zero balance.


Those are your reported balances?  Get a small balance to report on th next one of your statements to close, leave everything else at $0, and then go mortgage shopping.

 




        
Message 5 of 6
Anonymous
Not applicable

Re: Suggestions for Next Steps

I wouldn't bother converting the secured PNC now.  Go for the mortgage refi.  7% is high!

 

Who cares if your credit score takes a dip after the mortgage refi?  Once you got that, you're golden.  Besides, it'll be temporary.

Message 6 of 6
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