@Anonymous wrote:I'm so confused I don't have any new credit.... but wont I get more debt if I open a new credit card? We want to buy a house but it seems were just stuck and our credit scores are not moving.
You need to provide some more information. Where are your scores now and what are you using to determine those scores? List out your accounts and any baddies and someone will be able to point you in the right direction. You do not want any new credit leading up to a mortgage of about a year. There may be other ways to get your score up as getting a new card does not necessarily mean a score increase and most likely will mean a drop for the new account and inquiries.
You need 3 credit cards and one installment loan. That gives you the perfect credit mix. You can use them daily but make sure 2 cards are paid in full BEFORE the statement cuts so that way they will report a $0 balance. One the last card, pay it down to 8.9% or less of your limit. Thats is the AZEO method. That will give your reports a little bit of a boost as well. After that, its nothing but time for your accounts to age. Can't do anything besides what I have stated. If you do have some baddies, you can try for GW to see about getting them removed.
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@M_Smart007 wrote:
@Anonymous wrote:I'm so confused I don't have any new credit.... but wont I get more debt if I open a new credit card? We want to buy a house but it seems were just stuck and our credit scores are not moving.
@Anonymous, Hi
If you plan on buying a house?, You do not want to apply for credit products one year prior to a mortgage.
+100,000,000
Loan officer will give you a
@Anonymous wrote:getting a new line of credit doesnt mean you have to run up a balance on it. having the avaiable credit is what boosts your score.
-more spending power
-the new credit line lowers your overall credit utilization
Gets lots of credit, use as little of it as possible
This.....so much this.
My entire life I have been a cash guy.....always paid in cash, never had any real debt. If I didn't have the cash for it, then I didn't need it. But I realized if I was ever going to get a car loan or mortgage loan it was going to require credit.
And the most important thing I realized after researching and digging through endless forum posts to learn about building credit.....was that statement right there. The trick to having great credit is......don't use it. Get as much as you can, but simply treat them as debit cards. Don't put anything on them that you can't already buy with cash and make sure you PIF every month.
Since then I've adapted to cashback CC's, but again....I only put my normal organic spend on them. (Which without those credit cards, I would be paying for with cash anyway)
And like others have mentioned, no new credit for 12 months prior to a mortgage loan. AZE0 method. Also, focus on your existing cards and get as much CLI as you can to lower your UT%. And (goes without saying) pay down as much debt as you can.
On Deck: Possibly Aven 3% Visa