@Anonymous wrote:I applied for a mortgage and got turned down due to not having enough open trade lines. My credit scores as pulled by a lender are Experion 643 TU 649 Eq 646. He said my scores were fine I just needed to open 2-3 credit cards and charge small items on them every month then pay them off. I have had cc's in the past when I was younger and got in trouble with them I had 2 cap 1's one HSBC"best buy" and a Kays CC I lost my job while I had balances on each of them so I did not pay them I had to pay rent. So they all went to being charge offs in 2010 and showing 0 balances. Now this lender said I need to get 2-3 new credit cards he said it won't matter what the interest rate is because I am going to pay them off every month does this make sense to you guys. I know I can be strict with myself and only use them to buy lunch once a month then pay them off but will this help me. And what type of credit cards should I apply for since my credit history is "paper thin" as he put it. I don't want to go out and apply for a bunch of cards and just get declined due to not enough credit trade lines and just beat my credit scores into the ground. I am so confused right now won't applying for cc's just hurt my credit and how fast will it recover?
Hmmm. I am not sure why he would suggest you to open accounts unless you are not thinking about buying for a year. Also, assuming your credit report list no other baddies but the paid CA's - you should app for Walmart (free TU score and it will grow also there is only one app you do not have to designate store card versus Discover card). Are you a member of a CU? I would try for a cc with them or maybe one that is secured but graduates Like Bof A.
This is all based on not intending on purchasing for a year. New credit (ESP for a rebuilder) when buying a home can cause an underwriter some pause. FHA loans are easier to qualify for- were you looking for a conventional loan? Maybe that's why he wanted to boost your score - but again new credit takes awhile to affect a score positively.
Right now, I have more questions than answers.
@09Lexie wrote:
@Anonymous wrote:I applied for a mortgage and got turned down due to not having enough open trade lines. My credit scores as pulled by a lender are Experion 643 TU 649 Eq 646. He said my scores were fine I just needed to open 2-3 credit cards and charge small items on them every month then pay them off. I have had cc's in the past when I was younger and got in trouble with them I had 2 cap 1's one HSBC"best buy" and a Kays CC I lost my job while I had balances on each of them so I did not pay them I had to pay rent. So they all went to being charge offs in 2010 and showing 0 balances. Now this lender said I need to get 2-3 new credit cards he said it won't matter what the interest rate is because I am going to pay them off every month does this make sense to you guys. I know I can be strict with myself and only use them to buy lunch once a month then pay them off but will this help me. And what type of credit cards should I apply for since my credit history is "paper thin" as he put it. I don't want to go out and apply for a bunch of cards and just get declined due to not enough credit trade lines and just beat my credit scores into the ground. I am so confused right now won't applying for cc's just hurt my credit and how fast will it recover?
Hmmm. I am not sure why he would suggest you to open accounts unless you are not thinking about buying for a year. Also, assuming your credit report list no other baddies but the paid CA's - you should app for Walmart (free TU score and it will grow also there is only one app you do not have to designate store card versus Discover card). Are you a member of a CU? I would try for a cc with them or maybe one that is secured but graduates Like Bof A.
This is all based on not intending on purchasing for a year. New credit (ESP for a rebuilder) when buying a home can cause an underwriter some pause. FHA loans are easier to qualify for- were you looking for a conventional loan? Maybe that's why he wanted to boost your score - but again new credit takes awhile to affect a score positively.
Right now, I have more questions than answers.
The OP answered the questions in the previous post. The underwriter doesn't care about score, but needs to see more credit activity with open tradelines. At this point the OP has not shown their ability to handle credit responsibly for an extended period of time. It appears that home purchase has been pushed back approximately a year in order to age the tradelines.
Perhaps a secured card would be useful for you? Or maybe see if your local credit union has any cards?
Yea!!!
I got two unsecured credit cards thanks for all the help.
I got a Walmart credit card Limit $300.00 I am just going to use it for gas
And I got a Buckle credit card with a $300.00 limit just buy small things. So I got my 3 trade lines now so I am happy now in a year my LO says I will have no Issues getting a mortgage. And after the hit for the inq's my Fico score should start going up.
Thanks
YAY!! Buckle has some great clothing! and wal mart will show you love like never b4 JUST USE IT RESPONSABLY. Im sure you learned form your mistakes. Good luck and yes your FICO scores will rise up! Congratualations!
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