topic Re: Both a blessing and a curse!!! in Credit Cards

Both a blessing and a curse!!!

CreditCrusader — Sat, 19 May 2012 22:00:55 GMT

I have gone to great pains to pay down credit card balances that our family has run up during the Thansgiving/Christmas holidays and beyond...$5,000 of them, to be more precise.

At one point our CC utilization was 80%...no joke.

As of today, it sits at 19.3% (Yeah, yeah...I know 1-9% is ideal for most...this is significant progress nevertheless). My FICO scores reflect only TWO of the paid-in-full accounts reporting. The rest will report by month's end.

So given that I am at (and likely to be above) the 700 mark with my FICO scores, I took a spin on the Discover Card prequalification wheel this afternoon...and they have a PRE-APPROVED Discover More waiting for me there!

The problem?

We are buying a house in June...rather, we are getting USDA prequalified (will be 2 years our of BK as of June) on June 12th...then buying at the end of the month, so getting a credit card (even if it is my dream prime card) isn't exactly the smart move.

However, as I have openly pined for Discover and courted her (including chocolate and flowers) for so long, I felt the need to shout to the rooftops that she has accepted my marriage proposal. I just need to wait until after the house closes to walk her down the aisle

Re: Both a blessing and a curse!!!

iCoop — Sat, 19 May 2012 22:09:02 GMT

Yeah I would definitely wait as you don't want anything to stand between you and that home loan. But congrats anyways, hope she's worth the wait...

Re: Both a blessing and a curse!!!

Kendro — Sat, 19 May 2012 23:01:51 GMT

I did the same and found that I'm also pre-approved. Does that mean that if I apply, I won't get hit with a hard pull? Also, is there any difference between this and getting special offers in the mail? I noticed that Discover doesn't seem to offer cash back incentives like $250 after spending $1000 like Chase and AMEX. Do they ever offer these types of promotions?

Re: Both a blessing and a curse!!!

Anonymous — Sat, 19 May 2012 23:09:20 GMT

They are currently offering $100 back after spending $1000. Its not on the site but i got the offer by mail.

Re: Both a blessing and a curse!!!

Anonymous — Sat, 19 May 2012 23:10:53 GMT

@Kendro wrote:
I did the same and found that I'm also pre-approved. Does that mean that if I apply, I won't get hit with a hard pull? Also, is there any difference between this and getting special offers in the mail? I noticed that Discover doesn't seem to offer cash back incentives like $250 after spending $1000 like Chase and AMEX. Do they ever offer these types of promotions?

Applying for a new tramline will always result in a hard pull. No matter what. A pre-approval is no more than a mail solicitation. Its not a guaranteed approval, it just means that they have been softing your reports, and now want you in with them. As far as offers, I have never seen a spending bonus offered from Discover.

Re: Both a blessing and a curse!!!

boomhower — Sat, 19 May 2012 23:41:09 GMT

It's better to wait, the higher score will get you a better CL.

Re: Both a blessing and a curse!!!

Booner72 — Sun, 20 May 2012 03:04:16 GMT

I can't tell from your post if you applied or just got a preaproval? But if you haven't applied, DO NOT DO IT! And if you did apply, DO NOT USE IT!

Your mortgage is next month and that could make an underwriter pretty leary.

Re: Both a blessing and a curse!!!

RyVision — Sun, 20 May 2012 13:54:01 GMT

From what I read in the OP, Crusader has not applied, only checked the site for pre-approved offers and knows better than to apply until after the mortgage is finalized etc.

Not to worry Crusader, Discover will be more than happy to wait until after the mortgage etc, I've read it's best to wait at least 30 days after the mortgage is done before applying for anything though, I just don't remember where I read it, I think it was on here.

Congrats on the pre-approval though and even more so on the new house

Re: Both a blessing and a curse!!!

CreditCrusader — Sun, 20 May 2012 17:30:24 GMT

@RyVision wrote:
From what I read in the OP, Crusader has not applied, only checked the site for pre-approved offers and knows better than to apply until after the mortgage is finalized etc.

Not to worry Crusader, Discover will be more than happy to wait until after the mortgage etc, I've read it's best to wait at least 30 days after the mortgage is done before applying for anything though, I just don't remember where I read it, I think it was on here.

Congrats on the pre-approval though and even more so on the new house

Many thanks for the congrats!

Yes indeed...I do know not to apply for ANYTHING in the months before and shortly after the house-buying and closing process

Re: Both a blessing and a curse!!!

iCoop — Sun, 20 May 2012 21:47:10 GMT

I would like to know where the info about waiting at least 30 days after the mortgage closes came from. Once you sign on the dotted line and receive your keys you are free to do whatever you want without worry; unless your contract specifically states that the sale of the home is contingent on you not having your credit pulled or having credit extended to you for a specified amount of time after closing. After I closed on my home, the very next day I went and purchased a new car which I had held off on doing for the entire year before buying the home. No negative side effects except for the numerous pulls showing on my credit reports by the home and auto loan lenders from shopping around. But even those are condensed into two pulls since they were done within a short period of time.

Re: Both a blessing and a curse!!!

CreditCrusader — Mon, 21 May 2012 01:37:00 GMT

@iCoop wrote:
I would like to know where the info about waiting at least 30 days after the mortgage closes came from. Once you sign on the dotted line and receive your keys you are free to do whatever you want without worry; unless your contract specifically states that the sale of the home is contingent on you not having your credit pulled or having credit extended to you for a specified amount of time after closing. After I closed on my home, the very next day I went and purchased a new car which I had held off on doing for the entire year before buying the home. No negative side effects except for the numerous pulls showing on my credit reports by the home and auto loan lenders from shopping around. But even those are condensed into two pulls since they were done within a short period of time.

I see you're pretty new here, so please allow me to introduce you to one of our favorite acronyms:

YMMV i.e. Your Mileage May Vary

For the purpose of this example, it means that while YOU experienced one set of circumstances i.e. being able to apply for anything you want once you have signed the dotted line, others have chimed in frequently here to exercise caution based on their experiences. I have many times read advice given by long-time FicoForums members to hold off for a few weeks after closing on a home.

Doesn't make them right...doesn't make you wrong - and vice versa. Just means YMMV

Re: Both a blessing and a curse!!!

iCoop — Mon, 21 May 2012 16:50:40 GMT

@CreditCrusader wrote:
@iCoop wrote:
I would like to know where the info about waiting at least 30 days after the mortgage closes came from. Once you sign on the dotted line and receive your keys you are free to do whatever you want without worry; unless your contract specifically states that the sale of the home is contingent on you not having your credit pulled or having credit extended to you for a specified amount of time after closing. After I closed on my home, the very next day I went and purchased a new car which I had held off on doing for the entire year before buying the home. No negative side effects except for the numerous pulls showing on my credit reports by the home and auto loan lenders from shopping around. But even those are condensed into two pulls since they were done within a short period of time.
I see you're pretty new here, so please allow me to introduce you to one of our favorite acronyms:

YMMV i.e. Your Mileage May Vary

For the purpose of this example, it means that while YOU experienced one set of circumstances i.e. being able to apply for anything you want once you have signed the dotted line, others have chimed in frequently here to exercise caution based on their experiences. I have many times read advice given by long-time FicoForums members to hold off for a few weeks after closing on a home.

Doesn't make them right...doesn't make you wrong - and vice versa. Just means YMMV

My being new to this specific forum has nothing to do with me ascertaning the answer. YMMV is commonly used across the web and I am quite certain of its meaning, but thanks anyways for the description. Back to the matter at hand, other than going off of hearsay there is no valid reason for why one should wait after already having signed a contract. In fact it would probably be beneficial to get the hard pulls done around the same time so that they all tend to fall off the report at the same time. Just never apply for the auto loan BEFORE the mortgage.

But what I will agree with you on is that neither side is right or wrong, as I was never looking to be right, just wanted some clarification on the topic at hand.

Re: Both a blessing and a curse!!!

RyVision — Mon, 21 May 2012 17:09:42 GMT

@iCoop wrote:
@CreditCrusader wrote:
@iCoop wrote:
I would like to know where the info about waiting at least 30 days after the mortgage closes came from. Once you sign on the dotted line and receive your keys you are free to do whatever you want without worry; unless your contract specifically states that the sale of the home is contingent on you not having your credit pulled or having credit extended to you for a specified amount of time after closing. After I closed on my home, the very next day I went and purchased a new car which I had held off on doing for the entire year before buying the home. No negative side effects except for the numerous pulls showing on my credit reports by the home and auto loan lenders from shopping around. But even those are condensed into two pulls since they were done within a short period of time.
I see you're pretty new here, so please allow me to introduce you to one of our favorite acronyms:

YMMV i.e. Your Mileage May Vary

For the purpose of this example, it means that while YOU experienced one set of circumstances i.e. being able to apply for anything you want once you have signed the dotted line, others have chimed in frequently here to exercise caution based on their experiences. I have many times read advice given by long-time FicoForums members to hold off for a few weeks after closing on a home.

Doesn't make them right...doesn't make you wrong - and vice versa. Just means YMMV
My being new to this specific forum has nothing to do with me ascertaning the answer. YMMV is commonly used across the web and I am quite certain of its meaning, but thanks anyways for the description. Back to the matter at hand, other than going off of hearsay there is no valid reason for why one should wait after already having signed a contract. In fact it would probably be beneficial to get the hard pulls done around the same time so that they all tend to fall off the report at the same time. Just never apply for the auto loan BEFORE the mortgage.

But what I will agree with you on is that neither side is right or wrong, as I was never looking to be right, just wanted some clarification on the topic at hand.

I do so hate to break it to you but technically everything on this and other forums could be considered "hearsay". Mentioning what one has read before is more of a heads up to research into it than advice. I am not the one needing the info but if I did, I would be glad someone mentioned it so I could look into it if they had already read something about it being a POSSIBLE concern. On this forum, some will offer the clarification if they have it at hand at that moment (as I often have) or simply mention they've seen an issue so the person they're responding to can look into it to see if it applies to their situation, by clarifying it themselves, that's why this forum has a search function..........

You will eventually see that this forum and the people who post on it work a bit differently than many other forums. Most of us work well together even when someone just mentions a reminder, then others often chime in about their details of said experience to clarify further.

Re: Both a blessing and a curse!!!

CreditCrusader — Mon, 21 May 2012 18:50:15 GMT

@iCoop wrote:
@CreditCrusader wrote:
@iCoop wrote:
I would like to know where the info about waiting at least 30 days after the mortgage closes came from. Once you sign on the dotted line and receive your keys you are free to do whatever you want without worry; unless your contract specifically states that the sale of the home is contingent on you not having your credit pulled or having credit extended to you for a specified amount of time after closing. After I closed on my home, the very next day I went and purchased a new car which I had held off on doing for the entire year before buying the home. No negative side effects except for the numerous pulls showing on my credit reports by the home and auto loan lenders from shopping around. But even those are condensed into two pulls since they were done within a short period of time.
I see you're pretty new here, so please allow me to introduce you to one of our favorite acronyms:

YMMV i.e. Your Mileage May Vary

For the purpose of this example, it means that while YOU experienced one set of circumstances i.e. being able to apply for anything you want once you have signed the dotted line, others have chimed in frequently here to exercise caution based on their experiences. I have many times read advice given by long-time FicoForums members to hold off for a few weeks after closing on a home.

Doesn't make them right...doesn't make you wrong - and vice versa. Just means YMMV
My being new to this specific forum has nothing to do with me ascertaning the answer. YMMV is commonly used across the web and I am quite certain of its meaning, but thanks anyways for the description. Back to the matter at hand, other than going off of hearsay there is no valid reason for why one should wait after already having signed a contract. In fact it would probably be beneficial to get the hard pulls done around the same time so that they all tend to fall off the report at the same time. Just never apply for the auto loan BEFORE the mortgage.

But what I will agree with you on is that neither side is right or wrong, as I was never looking to be right, just wanted some clarification on the topic at hand.

But it DOES have to do with having a full understanding of just how many people post here or the breadth of experiences that accompany them. This issue has been addressed to the end of the Earth and back here...and the YMMV was referencing that no one person will give the all-encompassing "correct" answer. You asked where the info came from...that was my reply to your question i.e. MANY people have reported what has been alluded to here apropos going for new credit shortly after closing on a home.

In any event, since this is my thread (and thus my credit call), the YMMV on this issue will be far more than enough to exercise caution in this arena. Having a new credit card (even Discover) isn't worth compromising an approved home loan...not by a long shot.