Re: Which card, if any, should I apply for?

altstates93 · ‎08-14-2021

After several months of working on my credit, I believe I have it in reasonable shape. My big goal: purchase a house in the next six to nine months.

Even though conventional wisdom advises against applying for new credit within a year of purchasing a house, I have an itch for a new CC. I've had no inquiries for several years. Also, I admit I would like to award myself for improving my credit. I figure I have a small window of opportunity to take one shot before retreating back into the garden.

Some statistics: F8 scores (Classic and Bankcard) range from 660ish (Equifax) to 706 (TU BC 8). F9 scores range from 710 to 737. EX3 and TU4, which Capital One apparently uses, sit at 693 and 716.

I have two cards, Discover and Merrick Visa, each with a 2K limit. I've had Discover since 2014, and Merrick since 2015.

My four preferences: BOA Customized Cash, joining a local CU to apply for Elan Max Cash Preferred, joining NFCU for one of their cash back cards, or try for the Capital One Savor One Rewards.

I intended to list the pros and cons of each, but this already feels TL; DR.

Given the above, which one do you think I should take my one shot with?

Thank you for taking the time to read this and for any feedback provided.

GatorGuy · ‎08-14-2021

Applying for a credit card will literally cost you tens of thousands of dollars if you are serious about buying a house.

Your mortgage scores are already probably middle of the road and if they drop too much you might not qualify for a mortgage.

Anonymous · ‎08-14-2021

Have you prequalified yet for a mortgage? I wouldn't risk applying for a card now if you really want to buy a house within 6-9 months. Maybe instead you can see about getting a credit line increase with Discover? That's a soft pull. I did end up getting a new card for a balance transfer about four months before I bought my house last year. I actually applied for the balance transfer card the same day I applied for my first mortgage preapproaval. The week after, I got a second mortgage preapproval. But I didn't actually buy my house, as I said, for another four months. And then had to get two new preapprovals because the seller said she would take my bid (there were 16 bids total) if I got preapproved by her preferred banks. In the end, I don't think the balance transfer card hurt my chances at getting a mortgage, but I didn't realize at the time that I got the new card that it could. I wouldn't do it again if I had it to do over. My interest rate is probably a bit higher than it might have been.

altstates93 · ‎08-14-2021

I recently had a preliminary conversation with the mortgage lender I plan to use. He told me I would need a minimum of 620. I currently have a 703 MMS. So I doubt one HP would make me ineligible for a mortgage at least six months down the line.

Point taken though. I don't know how much a HP would affect my MMS, or how long it would take to recover. That's why I'm asking this community for feedback.

Thank for you the response. I think I can safely chalk that up in the "None of the above" column.

GatorGuy · ‎08-14-2021

The hard pull is the least of it. You will have a new account which decreases your AAOA. You also can change scorecards because you will have a new revolver within the last 12 months. The mortgage scores are very sensitive to these and depending on your profile, could easily see a 15 or 30 point drop in your scores.

This is real money. Mortgages are the usually the most important money/credit decision people make.

If you change your mind on the house, go have fun and pick out whichever card you fancy the most.

altstates93 · ‎08-15-2021

I likely experienced a little "new 700 syndrome" when inspecting my 3B report yesterday. Looking at the calendar, my scores, and all the cashback cards I would eventually like to get, I thought *maybe* I could get one of those cards without adversely affecting my mortgage plan.

Though 700+ may be solid, it's not bulletproof. Six years have passed without applying for a card. Waiting about six more months won't make much difference.

When I have the keys to my house, then I'll revisit applying for new cards.

Adulting can be hard.

FireMedic1 · ‎08-15-2021

Question to ask self. Do I want to purchase the biggest investment in my life that will have thousands in equity years down the road. Or get a piece of plastic and maybe make $20 in cash back in a year for charging something on the card and have to pay it back. Hmmmmmm........

altstates93 · ‎08-15-2021

Taking up DommieD's suggestion, I requested a CLI for Discover. They denied me. I suspect the presence of my Barclay CO from 2015 contributed to that. Though only a soft pull. So no harm.

@FireMedic1 The potential downside of a ding to my mortgage scores does far exceed the most optimistic upside to a new cashback card. Consider me sufficiently chastened.

Though I still may open up modest savings accounts at NFCU and PFCU, thereby having an established relationship in place for the time down the road I can more safely apply for their cards.

I have no doubt someone on this forum will let me know if that's also a bad idea.

FireMedic1 · ‎08-15-2021

@altstates93 wrote:
Taking up DommieD's suggestion, I requested a CLI for Discover. They denied me. I suspect the presence of my Barclay CO from 2015 contributed to that. Though only a soft pull. So no harm.

@FireMedic1 The potential downside of a ding to my mortgage scores does far exceed the most optimistic upside to a new cashback card. Consider me sufficiently chastened.

Though I still may open up modest savings accounts at NFCU and PFCU, thereby having an established relationship in place for the time down the road I can more safely apply for their cards.

I have no doubt someone on this forum will let me know if that's also a bad idea.

Saving for the future is the utmost important thing to do. And building a relationship with NFCU which just might be your lender in the future. If everyone saved 10% of their take home pay for who knows what maybe thrown our way. You know you got a back up just in case. Its hard to fight the itch. Trust me I know. But keys vs card.Once your in your new home. Then have a field day. You earned it!

Anonymous · ‎08-15-2021

Aww, nuts. Sorry about Discover. They can be finicky.

@altstates93 wrote:
Taking up DommieD's suggestion, I requested a CLI for Discover. They denied me. I suspect the presence of my Barclay CO from 2015 contributed to that. Though only a soft pull. So no harm.

Which card, if any, should I apply for?

Which card, if any, should I apply for?