Any new accounts or credit inquiries 6 months-1 yr in advance of a mortgage pull wont help you. If you need the car loan I would suggest you get it ASAP and well ahead of needing the mortgage.
You're doing pretty well, but a couple of things:
1. Unenroll from Experian Boost (you said "blast," but I'm assuming you meant Boost). It's just a way to artificially inflate your score and the "boosted" score isn't even used by any lenders, so really its only use is to make yourself feel good and for EX to data mine. I have no knowledge of "boom" or "ecredable," but I suspect they're a similar gimmick.
2. If you truly need the auto loan, you can't really do much about it, so don't worry about scores. Yes it's advised to not do anything credit related in the 12 months leading up to a mortgage application, but if it's a necessity, then I'm sure you can explain this to the loan officer when going for the mortgage application.
3. Great job on getting two more revolving cards and the installment loan. This helps your credit mix which can yield some points. Now I suggest you implement AZEO, or All Zero Except One, which means paying all accounts down to zero balance BEFORE the billing cycle closes except for one NON-STORE card, such as your new Capital One Platinum or Discover. On this one card you leave a small, $10-$20 balance on it just before the cycle closes, that way that small balance will be reported. This is how you can maximize scores. Note that AZEO doesn't mean you can only use one card at a time. You can use all cards as much as you want, just as long as they're all paid down to zero a few days before statement cut except for the one card you plan to leave the small balance on. Also note that you don't necessarily have to do this every month, just maybe in the 2 months leading up to your planned mortgage app.
@750andup2 wrote:Hi all,
Fico scores 635, 647, 648.
Have a charge off over 60 days, on a secured bank of america credit card. I was completely clueless about credit, and didn't make payment on the card. I paid it off ($150 owed) in 2020. It was charged off in 2018.
Other than that, my credit file is extremely thin with no other negative remarks or late payments on it. Have just one store card, I use intermittantly that i maintain a negative balance on.
In the last month, ive joined myfico, boom (rent reporting) ,experian blast, and ecredable memberships. These alone have boosted my credit score about 25 points in a week. Rent reporting has had no effect yet, they say I need to wait about 10 days. Ive opened up two secured credit cards, a capital one platinum, and a discover card. Both credit cards are in process, not showing up on my credit report yet. I've also opened up a $2500 credit strong credit builder loan that i plan on making payments to over 3 years, first payment is on March 3rd.
My mortgage scores are 651, 680, 677. I need these about 700 for a mortgage loan on our first time home. I'm being quoted above 4% on 30 year fixed at the moment. My salary will be going up 4-5x in the second half of this year, not sure if that is relevant. Bankers telling me to get an 10 year ARM loan, and upgrade our home after a few years. This is giving us the lowest interest rates. With unpredicatable interest rates, not so sure if thats the best idea.
What can I do now other than what i've done in the past few weeks. Is there anything else that can be done now, prior to just being responsible and maintaining good credit utilization? We need a new car in the family, will the Auto loan help or hurt our credit before applying for our mortgage loan?
Thank you in advance for your replies!
No, the best thing for you to do now is to maintain what you have, and build a good record with it. No applications for anything until after you've closed on your mortgage.
