Applying For Credit Card before my Mortgage Fast??

Anonymous · ‎06-20-2020

Planning on applying for a refinance in JAN-FEB 2021. Got 2 new credit cards in May that will start reporting the end of this month. I also got an offer for an Apple Card (which is on my wish list). Yeah, had I known about the Apple Card pre-approval I would have done that before the other two.

So all three of my mortgage scores are in the low 700s. MY FICO 8’s are 725-755. I have 2 TransUnion Inquiries 1 in Jan 1 in April. MyFico simulator says an HP will cost me 5 points. (I am assuming Apple will pull Transunion)

So do I give in to one more card before I go on my fast before my mortgage? Will having 6-7 months of no new credit be ok? Or Will adding one more card do damage?

Anonymous · ‎06-20-2020

Every new account brings your average age down...

Credit seeking behavior hurts mortgage scores

It's advised to not apply for new credit for a year prior to mortgage. You are penalized for having an account under 12 months age.

AllZero · ‎06-20-2020

Agreed with the above. When you say low 700, what is your MMS Middle Mortgage Score? Once your 2 other cards report, it may or may not drop you a tier. Do you have the score padding? Can you afford the penalty?

Anonymous · ‎06-20-2020

My mortgage scores are 705-715 currently... I do have a new account within a year so I am already being penalized for that.

I am guessing my new accounts will all be 6-7 months age when I apply for a mortgage.

b

Anonymous · ‎06-20-2020

@Anonymous wrote:
My mortgage scores are 705-715 currently... I do have a new account within a year so I am already being penalized for that.

I am guessing my new accounts will all be 6-7 months age when I apply for a mortgage.

b

Yes, you're already being penalized, but that's not the ONLY penalty. Your Average Age of Accounts goes down, and you can get that lovely "credit seeking behavior" flag. Hang out. If you can wait until next may or June for the refi you'd be even better, but you def don't want to screw it up now.

I'm in the same boat - app'ing shortly. I just have to keep the itch at bay until closing.................... You can do it!!!

AllZero · ‎06-20-2020

@Anonymous wrote:
My mortgage scores are 705-715 currently... I do have a new account within a year so I am already being penalized for that.

I am guessing my new accounts will all be 6-7 months age when I apply for a mortgage.

b

Not sure what best rates are 720, 740, 760? You'll need to speak with a professional.

Personally, I'd try to minimize any score impact. You will have to find out once those 2 other cards start reporting. I don't think the Apple card will be going anywhere any time soon.

Anonymous · ‎06-21-2020

I'm up for review this week on a NFCU card (13th month). I'd have applied sooner for a CLI, but we're buying a house and avoiding hard pulls. Card currently has a 2k limit (530 bal).

I also have another NFCU card and am a AU on my DW card, both opened in 10/19 with $2500 limits (600 bal each).

Scores are between 660-680. Thoughts on increasing limit(s)? Will they help my scores much?

Anonymous · ‎06-21-2020

@Anonymous I would try to stay away from anymore inquiries/new accounts. You definitely don't want to risk your middle score dropping below 700. I just closed on my home and barely made it over 700 (702 middle). Getting my score over 700 saved me .5% on my rate, as well as saved me on PMI by about $100/MO, so a good amount overall.

Just my opinion from recent experience!

Anonymous · ‎06-21-2020

@Anonymous @I recently received an increase on my NFCU CashRewards card prior to my home closing. It was a SP for me, but I also had a freeze on my credit in case it wasn't. More available credit definitely won't hurt your scores and deending on the amount of increase would help your UTIL and ultimately increase your scores as it appears you are around 25% on your $2K limit card. Ideal to get that under 8%,

AllZero · ‎06-21-2020

@Anonymous wrote:
I'm up for review this week on a NFCU card (13th month). I'd have applied sooner for a CLI, but we're buying a house and avoiding hard pulls. Card currently has a 2k limit (530 bal).

I also have another NFCU card and am a AU on my DW card, both opened in 10/19 with $2500 limits (600 bal each).

Scores are between 660-680. Thoughts on increasing limit(s)? Will they help my scores much?

@Anonymous. Agreed with @Anonymous .

See message 37.

https://ficoforums.myfico.com/t5/Credit-Card-Approvals/NFCU-Flagship-Rewards-quot-SP-quot-CLI-to-19-000/td-p/6057729