topic Re: Should I apply for CC? in Credit Cards

Should I apply for CC?

CC40 — Tue, 10 Jul 2012 23:57:10 GMT

I have cleaned up my credit TREMENDOUSLY!!!! Am battling one last 90 day late with ole Sallie Mae. Not feeling good about how that is gonna work out, but I have an old Bank of America card (from 1990) that has never been late. Bad thing is there is about 70% until on this card. I am getting several credit card pre approvals. I want to apply for a mortgage soon. Should I apply for another CC to decrease my available utilized credit? I figure if I have to take a hit for a HP I need to do it now while my CR iss undergoing so many changes. .??.?.? I am planning to pay the BoA card down quickly? Just looking for a quick boost. Cuz I would use the new card to like pay a bill I would normally pay and then immediately pay it off. Asked about this beforenand someone said "no new card". I just don't understand why.

Re: Should I apply for CC?

Anonymous — Wed, 11 Jul 2012 00:03:26 GMT

Another card would probably help your FICO once the effects are gone if not immediately. However, when are you planning to apply for mortgage? Also, any idea what your FICO score is. I recommend buying the Equifax score from myfico. TU score probably not worth it. How long for you to get your BofA util down and what is its limit? When was the Sallie Mae late and how many days?

Re: Should I apply for CC?

CC40 — Wed, 11 Jul 2012 00:20:01 GMT

How much of a hit does a HP cause? I Was pre approved through Wells Fargo about 10 months ago to buy a house but couldn't find one. I am ready to build now. So, I cleaned up my mess on my credit. Was pre approved with a FICO of 626. FICO is now 652. Sallie Mae was last December 2011 - 90 day report. :-(. Don't even ask. I am going to fight it. I was granted a retroactive forbearance which I have my papers reflecting this. So I disputed thru CRA. If that doesn't work I am going to mail copies of my forbearance to CRA. Sallie Mae WILL NOT grant GW. So I don't know about the outcome of that one. The limit on the BoA is only $2100. , I paid $200 last month and will again this month and next.

Re: Should I apply for CC?

CC40 — Wed, 11 Jul 2012 00:50:39 GMT

Why does it bother me so much when everyone reads but doesn't respond?

Re: Should I apply for CC?

Anonymous — Wed, 11 Jul 2012 00:59:14 GMT

Everyone is different on how much single inquiry will hurt. If first inquiry in 12 months, 10-20 is good guess. If 9 in last 6 months, probably only a couple points. What did you say about how long to get your util down to sub 10%?

Re: Should I apply for CC?

LS2982 — Wed, 11 Jul 2012 01:00:49 GMT

@DixieGirlx3 wrote:
How much of a hit does a HP cause? I Was pre approved through Wells Fargo about 10 months ago to buy a house but couldn't find one. I am ready to build now. So, I cleaned up my mess on my credit. Was pre approved with a FICO of 626. FICO is now 652. Sallie Mae was last December 2011 - 90 day report. :-(. Don't even ask. I am going to fight it. I was granted a retroactive forbearance which I have my papers reflecting this. So I disputed thru CRA. If that doesn't work I am going to mail copies of my forbearance to CRA. Sallie Mae WILL NOT grant GW. So I don't know about the outcome of that one. The limit on the BoA is only $2100. , I paid $200 last month and will again this month and next.

-What is the balance on the BofA card?

-What other CC's do you have??

-What is your AAoA??

-When exactly are you going for the Mortgage?

Your heading the right direction but those questions above will help our answers.

Re: Should I apply for CC?

LionLaw — Wed, 11 Jul 2012 01:04:25 GMT

If you're looking to get a mortgage in the next few months, you should probably hold off on applying for new credit until after closing. From what I hear, it makes mortgage lenders nervous to see you hunting around for other credit right before you apply for a mortgage. If you're not looking to get a mortgage for the next year or more, then a new CC could help fill out your credit profie and dilute your util % (though you'll take a hit to AAoA).

Also, as for your retroactive forbearance on your Student Loans: this generally won't help you get the lates off your CR (believe me, I've tried). Unless you can show some clear error on the part of the lender, those lates are probably going to be on there for the long haul.

Re: Should I apply for CC?

Anonymous — Wed, 11 Jul 2012 01:06:49 GMT

@DixieGirlx3 wrote:
Why does it bother me so much when everyone reads but doesn't respond?

LOL relax. You have to give us enough time to respond.

Anyways, if you're thinking about reapplying for mortgage, I would suggest for you to just focus on paying off your credit card. Applying for another credit card will not help you IMO. Save the inquiries for your mortgage.

Re: Should I apply for CC?

CC40 — Wed, 11 Jul 2012 01:18:53 GMT

Okay okay! I just see everyone reading and I am scratching my head. So do ya think the December 90 day late will prevent me from being approved for the mortgage? I have no other credit cards. AAoA history is 14 years. That is the only baddie left on my credit. AND THAT IS JUST TERRIBLE! All others were paid out and deleted some time after - like paid off for years but i just got busy sending letters and disputing. Learned on here to prepare for my mortgage app. I am ready to apply NOW. Oh balance on BoA is little less than $1400.

Re: Should I apply for CC?

LS2982 — Wed, 11 Jul 2012 01:24:16 GMT

You need to pay down the BofA card and leave the apps alone if your going for the mortgage ASAP.

Re: Should I apply for CC?

CC40 — Wed, 11 Jul 2012 01:29:26 GMT

How can sallie Mae verify if I was in forbearance. C'mon - that ain't right! Disputes won't work - ya think?

Re: Should I apply for CC?

Anonymous — Wed, 11 Jul 2012 01:32:41 GMT

The limit on your BofA card is $2,100 and you currently owe next to $1,400 on it? So, you only have about $700 available credit right now?

You need to get your balance down to PAID OFF.

When you apply for a new credit card, you want to show that you can handle paying off a $2,100 credit line, otherwise, your FICO® score is not what it could be and, you are not going to make the best possible impression that you can on potential new creditors.

I understand that you are anxious to get on with your credit life -- but, its best for you to be as fiscally fit as you can be before you begin applying for more credit.

I wish you the best!

Re: Should I apply for CC?

CC40 — Wed, 11 Jul 2012 01:46:51 GMT

I got in trouble with credit so I set up bank draft payments - ignored I even had the card. No transactions or activity on that account in years. I don't live on credit cardS. If I can't pay for it - I don't get it. And I am finding out that has actually hurt me. I can easily pay the thing off but I don't want to use my savings for that. And it will benefit my FICO more (according to FICO simulator if I do it over a period of time. Don't go throwing stones discernment! You don't know me. I am on here asking for advice - not seeking reprimands or demeaning. Okay?

Re: Should I apply for CC?

Anonymous — Wed, 11 Jul 2012 01:50:44 GMT

Sorry did I miss the answer to when you think you can get your BofA below 10% utilization?

Re: Should I apply for CC?

Anonymous — Wed, 11 Jul 2012 01:50:53 GMT

@DixieGirlx3 wrote:
I got in trouble with credit so I set up bank draft payments - ignored I even had the card. No transactions or activity on that account in years. I don't live on credit cardS. If I can't pay for it - I don't get it. And I am finding out that has actually hurt me. I can easily pay the thing off but I don't want to use my savings for that. And it will benefit my FICO more (according to FICO simulator if I do it over a period of time. Don't go throwing stones discernment! You don't know me. I am on here asking for advice - not seeking reprimands or demeaning. Okay?

Oh dear, I was only trying to help. Please forgive my inarticulate mouth!

Re: Should I apply for CC?

Voodard — Wed, 11 Jul 2012 01:52:50 GMT

I would imagine your mortgage loan officer will want you to pay off the balance before they will send your application to underwriting. If you have to use savings, I would say do it. Get it off your credit account free and clear and be done with it.

Re: Should I apply for CC?

CC40 — Wed, 11 Jul 2012 02:07:17 GMT

Okay .... So what about the 90 day late from dec? Will that stop it?

Re: Should I apply for CC?

Anonymous — Wed, 11 Jul 2012 02:10:03 GMT

@Anonymous wrote:
@DixieGirlx3 wrote:
I got in trouble with credit so I set up bank draft payments - ignored I even had the card. No transactions or activity on that account in years. I don't live on credit cardS. If I can't pay for it - I don't get it. And I am finding out that has actually hurt me. I can easily pay the thing off but I don't want to use my savings for that. And it will benefit my FICO more (according to FICO simulator if I do it over a period of time. Don't go throwing stones discernment! You don't know me. I am on here asking for advice - not seeking reprimands or demeaning. Okay?
Oh dear, I was only trying to help. Please forgive my inarticulate mouth!

I agree that discernment was only trying to help and I saw no kind of personal attack in her comments.

When any of us come into a public forum and ask for suggestions/advice/comments what we receive is (usually) the honest opinion of others who have been in our same situation and who only want to offer what has worked for them. So you will receive a plethora of different ideas. Some will be good; some not so good. But take them in the spirit that they are usually offered; that of a sincere willingness to help.

One drawback of the written word is the inability often times for the reader(s) to know exactly what the intent of the writer actually is. That can often lead to misunderstandings. I've certainly been guilty of misreading the words of others.

Re: Should I apply for CC?

pizzadude — Wed, 11 Jul 2012 02:15:39 GMT

@Anonymous wrote:
@DixieGirlx3 wrote:
Why does it bother me so much when everyone reads but doesn't respond?
LOL relax. You have to give us enough time to respond.

Anyways, if you're thinking about reapplying for mortgage, I would suggest for you to just focus on paying off your credit card. Applying for another credit card will not help you IMO. Save the inquiries for your mortgage.

+1. DixieGirlx3 if you are going to be applying for a mortgage soon then you might try something to help you deal with waiting. Transcendental meditation or whatever it takes.....Because the mortgage & underwriting process is a GIANT game of hurry up and wait. Seriously you are going to have issues if waiting for an hour on MyFICO bothers you.

Re: Should I apply for CC?

LionLaw — Wed, 11 Jul 2012 02:19:14 GMT

I don't think the 90 day late will bar you from getting a mortgage as long as your current FICOs would still qualify you. That being said, if that's your only derog, its presence on your CR is probably costing your FICO some serious points, which means you'll get hit with a higher interest rate on a mortgage.