@ewtrw wrote:I plan on applying for a mortgage in 6 months. I only have 3 open accounts- a mortgage, car loan and one cc with $800 limit. My scores are all around 650, Is it to close to my application date (6 mths) to add a cc or something to possibly raise my score more? Thanks for any help....
Yes, it's too close, you do not want any new accounts or new inq's on your reports when going for a Mortgage,
From what I've read here at the Forums, it's best not to apply for any type of new credit for at least one year before going for a mortgage.
On your 800CL CC, what's your balance?
If it's above 15%, I'd recommend getting it down to like 1-5% util, you may see a small point increase if your revolving util is above 10-15% and you paid it down to 1-5% util, but I would not pay it to $0, FICO likes to see a little util, like I said somewhere between 1-5% should be best.
If your CC is already sitting at 1-5% util, there's nothing you can really do to increase your score a few points quickly.
Best of Luck!
ETA: IIecs always beats me to the punch
@Anonymous wrote:
@ewtrw wrote:I plan on applying for a mortgage in 6 months. I only have 3 open accounts- a mortgage, car loan and one cc with $800 limit. My scores are all around 650, Is it to close to my application date (6 mths) to add a cc or something to possibly raise my score more? Thanks for any help....
Yes, it's too close, you do not want any new accounts or new inq's on your reports when going for a Mortgage, This statement is a YMMV situation.
From what I've read here at the Forums, it's best not to apply for any type of new credit for at least one year before going for a mortgage. Once again YMMV for many different reasons.
On your 800CL CC, what's your balance?
If it's above 15%, I'd recommend getting it down to like 1-5% util, you may see a small point increase if your revolving util is above 10-15% and you paid it down to 1-5% util, but I would not pay it to $0, FICO likes to see a little util, like I said somewhere between 1-5% should be best.
If your CC is already sitting at 1-5% util, there's nothing you can really do to increase your score a few points quickly.
Best of Luck!
ETA: IIecs always beats me to the punch
While in general it is best not to apply for new credit, before applying for a new mortgage as others have stated, but YMMV. Using myself as an example I have applied for new credit with-in 60 days of applying for a mortgage and had no issues and or conditions. Just this past summer I purchased another home and added 3 new CC's all with-in 90 days of applying for another mortgage. No issues or problems at all. As a matter of fact I also closed in 8 days of applying which in my opinion after reading all the issues others are having with delays in closing I was a little stunned.
One thing I did notice is you stated you already have a mortgage and no mention if the house was sold or paid off? Your payment history will weigh heavily on approval especially the last few years with underwriting. If this is a second mortgage while still paying on the first mortgage the process is usually a little more detailed as far as what I was told and read. In my own situation I always paid off the first mortgage or sold before applying for another mortgage so I can not elaborate on what would be considered more detail.
One more thing is you didn't mention how long you have had the accounts open you presently have. If you mention how long you have them and any other negative information (lates, collections, charge off's, etc etc) you have on your reports as mentioned earlier, it will give others with similar situations to offer their opinions on their own situations similar to yours.
