topic Re: New Card in Credit Cards

New Card

800goal800 — Sun, 03 Apr 2022 14:52:06 GMT

I'm in the process of buying a home and want to get a new card or two. Closing in a few weeks. Is it better to wait until after closing but before it hits credit report or wait until it hits reports ? Don't currently own and no current auto or mortgage loans.

Re: New Card

Jnbmom — Sun, 03 Apr 2022 14:59:24 GMT

Do NOT apply for anything until after you close .

Re: New Card

800goal800 — Sun, 03 Apr 2022 15:00:49 GMT

That I know. My question was to wait until after closing but before the mortgage would show up on credit report or wait until it does.

Re: New Card

AverageJoesCredit — Sun, 03 Apr 2022 15:54:54 GMT

@800goal800 wrote:
That I know. My question was to wait until after closing but before the mortgage would show up on credit report or wait until it does.

After closing, before reporting.

Re: New Card

SouthJamaica — Sun, 03 Apr 2022 16:31:48 GMT

@800goal800 wrote:
I'm in the process of buying a home and want to get a new card or two. Closing in a few weeks. Is it better to wait until after closing but before it hits credit report or wait until it hits reports ? Don't currently own and no current auto or mortgage loans.

After closing but before closing hits credit reports, if you can manage that.

Re: New Card

K-in-Boston — Sun, 03 Apr 2022 16:33:59 GMT

Timing can also really depend on your credit profile and what you are applying for.

When you open a new mortgage, you will of course take hits for a new account and for that being your only mortgage with it right at 100% balance-to-original-loan-amount ratio. On the other hand you will also gain (likely many) points for having a mortgage reporting, especially as there are no other open loans reporting. Sometimes it can be hard to tell in advance whether positive will outweigh the negative when the new mortgage first reports. (After a handful of payments on the mortgage, it should be a big positive.)

If your scores as they are now would suggest likely approvals, I would err on the side of after closing and before reporting.

Re: New Card

DSTforlife — Mon, 04 Apr 2022 14:54:18 GMT

i can take up to 3 months for your mortgage to start reporting. at least that was the case for me.

Re: New Card

K-in-Boston — Mon, 04 Apr 2022 21:02:39 GMT

@DSTforlife wrote:
i can take up to 3 months for your mortgage to start reporting. at least that was the case for me.

That will definitely depend on the servicer of the loan and is very much YMMV. Due to refinancing and frequent servicer changes with previous loans (NFCU doesn't sell to external servicers, so that is a thing of the past), I've had quite a number of datapoints. Only one servicer ever took more than a few weeks to report the new (or "new" duplicate listing when the same loan just changed hands) mortgage in my experience, and I think that may have been 2 months.

Re: New Card

DSTforlife — Mon, 04 Apr 2022 21:38:48 GMT

I agree...it truly depends. maybe the OP can ask how long the lender usually takes to report the mortgage. when i refinanced a few years ago with rocket mortgage, it didn't report for 3 months. when i refinanced with Penfed in December 2021, it didn't report until February 2022. with each refinance, the processor gave me some insight on how long it would take the new mortgage to show up.

Re: New Card

MrT_521 — Wed, 06 Apr 2022 12:48:47 GMT

The obvious answer is to get new credit card(s) after closing but before reporting. However, unless you have a thin credit profile, chances are it won't matter much if you wait until after reporting.

Personally, I have a long, thick profile. The last several years I have been doing some churning. I was also able to put a lot of spend on my cards by buying for my employer and getting reimbursed. Sometimes I would have a few new cards within a few months, as well as higher than normal utilization.

It didn't matter. No matter what I do, my FICO scores hardly move. From month to month it might bounce around by 10-15 points, somewhere around 800. This is within a range that means absolutely nothing.