cancel
Showing results for 
Search instead for 
Did you mean: 

Mortgage App effect on New Credit Cards

Estimate your FICO® Score range for free

FICO® Score Estimator

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Member

Mortgage App effect on New Credit Cards

I'm a potential first time home owner / buyer, already pre approved for a loan. When approved and the loan reflects my credit report, will it be harder for me to get new credit cards, or credit limit increases on existing accounts? 

Message 1 of 6
5 REPLIES 5
New Contributor

Re: Mortgage Application

Actually, the opposite is true. Once you recover from the initial hit of a new tradeline, your scores should improve. The algorithm seems to like real estate tradelines as it's the ultimate in credit diversity. Revolving accounts, installment loans, and real estate accounts are the trifecta.

Message 2 of 6
Moderator

Re: Mortgage Application

Going to move this to CC for better coverage.

 

Edit: Discovered double post, comments have been merged into this thread.

"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne

Message 3 of 6
Community Leader
Super Contributor

Re: Mortgage Application


@sircard wrote:

I'm a potential first time home owner / buyer, already pre approved for a loan. When approved and the loan reflects my credit report, will it be harder for me to get new credit cards, or credit limit increases on existing accounts? 


For new approvals it should not, unless it somehow makes your DTI too high. 

For CLIs, I really dont think it makes a difference

 

 

EX 754 EQ 773 TU 752
Message 4 of 6
Moderator

Re: Mortgage Application

Speaking from personal experience, you will most likely see a good boost in scores and lots of new offers for credit. As Remedios said, unless it really impacts your DTI it certainly won’t hurt. Just make sure not to do any applications for new credit (including CLIs that might result in a HP) until you have keys in hand!

Message 5 of 6
Regular Contributor

Re: Mortgage Application

Getting issued a credit product involves your credit profile, not just credit score.

Having a mortgage will be double-counted in your favor eventually.

It may boost your score while also making you look like a more stable customer.

 

The opposite of how hard inquiries can be double counted against you.

They ding your score AND a potential creditor can deny you for too many inquiries.

Message 6 of 6
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.