What kind of a hit would this be?

[Desert-Rat]

10, 20, 30 points or more? 

All of the advice is "do not apply for new credit during a refi", but what if your FICO's are high enough to support both?

With 740 considered an excellent score, what if FICO's are in the 800's?

I have a 30yr old Visa that I plan to semi-retire and want to replace it with a Costco-Amex for the rewards,  asap.  Am I playing with fire?

Your thoughts?

D-R

[Lel]

It's not so much what the new account will do to your score - and if you're in the 800s, then you should be fine - but how the underwriter will look at the opening of a new credit account.  I don't know of anyone who has been specifically denied for opening up a new credit account in the midst of a refi, but I think many people don't want to be the lab rat in this experiment.

I refi'ed a home equity loan in May 2008.  I opened up a new gas credit card account in December 2007.  It didn't affect my ability to get a HELOC.  I don't know what my scores were in December 2007, but my score in October was in the 820s, and when the lender pulled my score in May it was right around 800.

[Jazzzy]

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@Desert-Rat wrote:

10, 20, 30 points or more? 

All of the advice is "do not apply for new credit during a refi", but what if your FICO's are high enough to support both?

With 740 considered an excellent score, what if FICO's are in the 800's?

I have a 30yr old Visa that I plan to semi-retire and want to replace it with a Costco-Amex for the rewards,  asap.  Am I playing with fire?

Your thoughts?

D-R

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Have you signed anything agreeing not to seek new credit? I would check with the loan officer.

For most folks, they are likely concerned about accumulating new debt, which chould affect their debt-to-income numbers.

If this will not affect your DTI, will not hit your FICO enough to cause much damage, then...call your LO and ask.

Any reason not to wait until the refi closes?

[creditwherecreditisdue]

Why can't this wait? Why tempt fate?

[Desert-Rat]

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@creditwherecreditisdue wrote:
Why can't this wait? Why tempt fate?

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It's just my nature! 

D-R