Get a third card?

[austinguy907]

Mortgage shouldn't scare you away from a 3rd card at this point.  What should be an idea though is a possible refi on your truck to reduce your monthly payments amount if you're looking at some higher end properties.  I found myself in a catch 22 situation of shopping and forgetting that dam car payment factors into it even with a higher income.  I got capped at 360K mortgage and if I paid off the car or refi'd it could've gone up to 525-550K but, I did end up finding something for 350K after some back and forth.  Also, a 3rd card will strengthen your profile for the mortgage showing you can manage multiple revovling lines and also, some UW's look for 3+ revolvers in addition to an installment history when reviewing a file.  Definitiely worhwhile to work with a Broker over a Banker when it comes to a sparse file for more options and shopping the loan.  Discover is a good grower if you treat them right.

More Discover info here --->>>>  http://ficoforums.myfico.com/t5/Credit-Cards/Discover-unOfficial-Data-Points/td-p/4802538

[jas312]

Thanks.

Going to leave the truck as-is for now.  I may just pay it in full once I have the house depending on my cash on hand at that time.  I'm only looking at ~$175k tops and every calculator I've tried says I have plenty of room based on where I'd be capped.  Don't want to go higher than that anyway--want to keep my monthly expenses such that I can still put some money into savings every month.

[Anonymous]

I agree that the mortgage should be your primary focus if that's what you have on your plate in the next year.  Afterwards though if you're looking for great rewards then a couple that are already listed would be good with your spending habits.  

Chase Freedom (not the unlimited)-5% cash back on rotating categories that change quarterly.  1% on everything else all the time.

Discover It- 5% cash back on rotating categories that change quarterly.  1% on everything else all the time.  Customer service is top notch.

Amex blue cash preferred-6% on groceries, 3% on gas at the pump and 2% on everything else.  Does have an af though.

If you're looking for better returns on gas at the pump I would also recommend Penfed platinum cash rewards card.  It offers 5% on fuel all the time.  Worth just having the card for fuel alone.

Good luck with your mortgage, and good luck with your next choice on rewards cards!

[Anonymous]

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@jas312 wrote:

Absolutely everything.  Right now I pay everything with my Barclay's card (bills, gas, food, etc.) and pay in full at the end of the month.

It does work out okay because I get enough rewards where I never have to buy coats or hiking boots or anything out of pocket, but I feel I can do better than 1% with something else.

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If you use your Barclays card for those types of transactions, and if you pay everything in full each month, why not looking at the PRG by Amex?  You could diversify your portfolio and add MR points into the mix.  AMEX PRG has a 50k offer right now.  

[SouthJamaica]

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@jas312 wrote:

Hi All,

Background:

Age:  24

Credit History:  Approx 5 years

TU FICO:  Has hovered between 800 and 815 for the past year.

Never carried a balance, paid interest, made a late payment, etc.

Cards:  2 (Barclays w/ ~$6500 limit, ELAN w/ ~$4500 limit)

Loans:  Two auto loans paid in full years ago.  One current.  ~$14k balance out of original amount of $26k.  Thought about paying it off but letting it ride out for more history.  Interest is fairly low, so it's not costing me much.

Inquiries:  0-1 depending on which bureau you look at.

I've been thinking about getting a third card.  My Barclay's is a store card (LL Bean) so rewards are not great for anywhere outside of that store.  The other card I don't use because rewards are terrible, I keep it open for emergencies in case the first card fails me, but it's just been sitting at a 0 balance for probably a year.  So, I've looked at a Citi Double-Cash or Discover IT because either one would benefit me more than my current cards.  I doubt I'd have an issue qualifying for either with a good limit.  Don't care a bit about interest since I'll never carry a balance.  Could be 90% for all I care.

The thing is, I'm also planning on going for a mortgage in the spring.  So I don't want to jeapordize the interest rate or anything on that.  I'd love to walk in there with a score over 800.

Opinions?

Thanks!

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Since you're going for a mortgage I wouldn't make any changes until after you close on that. The cash you'd get on a cash back card is chickenfeed.

If you really want to maximize your scores to the utmost, pay your open car loan down to $2340.

[Anonymous]

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@Anonymous wrote:

Is everyone missing the part about the mortgage app?

I have read here many times that you should have no new accounts within one year of apping for a mortgage, so I would hold off until that closes. Right after you have keys in hand though I would get a few new cards with better rewards. 

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+1