Hi everyone,
Been lurking for quite a while, not many posts just yet. All guidance is welcome. I'm in the process of contemplating opening a mortgage, though still wrestling with cleaning up my credit as best I can before fully pulling the trigger.
That being said, I seem to be reading somewhat mixed reviews on whether or not a new credit card opened within 6 months (or closer) to applying for a mortgage is a good or horrible idea. I don't *need* the credit lines at all, but I want a stronger score.
Open:
Bank of America rewards card, over 9.5 years old, 18.5k limit.
Capital One Quicksilver card: 10.8 years old, $500 limit (this card is horrible, never had a CLI, only hold onto it because it's elderly)
Reporting open but soon to show as closed:
Toyota Financial auto loan: started at 12.8k- I paid this off in 13 months instead of 48. Waiting to see it report (end of Jan). Not sure if the only installment loan I had open closing will end up hurting me or not. That being said, this account was 13 months old when finally closed. Hoping to see my AAoA go from 7.1 years to closer to 9.5 which could help eat the brunt of a hit from opening a new card.
2 inquiries from Dec 2013 (car loan) which will drop in a year.
2 inquiries from the last two months from mortgage shopping (3 weeks apart and I got prequals, just not rates I want yet)
I'm drooling over the Sallie Mae Mastercard. Should I apply? Current FICOs are in my signature. Will I get the sting of another HP and maybe a reduction in AAoA, but see a bump from more available credit? And yet another tradeline to pay on. How long does the average score take to bounce back from opening a new line- 6 months?
Not that I give much credence to simulators but most everything I've played with suggest my score would improve with a new credit line. Thanks!
