Buying in 6 months to a year - what should I do?

[CraveMazda]

My hubby and I are planning on purchasing a home (my first, his third - he has two investment properties). We plan to purchase this home together, he has a score of over 800 and mine is just above 700. He has no debt while I have minimal. There is currently a deal on a mileage credit card that would be beneficial for our summer vacation plans, I want to apply. Will I be OK since we don't plan on buying for more than 6 months, possibly longer?

[Anonymous]

Your inquiries make up ~10% of your score. They stay on your report for two years, but their effect dwindles after one year.

In a mortgage situation with both of you on the loan, the lower score will determine qualifications for rate and programs. That said, your score is probably close to upper tier depending on middle score. Your husband's is fine. Since his is higher, I would have him open the card. It won't affect you one bit beyond that you may have to explain why you opened the account.

If you were to be the one to open it, it's possible that your score might drop below 700 depending on how many other inquiries you have had in the last year. Him opening it should have no effect though.

Good luck!

[CraveMazda]

Thanks slappymancuso

[MovingForward_2012]

Just one other thing to consider. Your score may drop initially from the inquiry and new line of credit, but it will rebound and may be higher by the time you apply for a mortgage.

The weirdest thing that happened for me was I applied for the Chase Freedom in Jan and when the new inquiry hit, no change in score. When the new account hit, no change in score. My qualifying score was 703 before getting the card and 703 after getting the card. Not saying this will happen for you but it is a possibility. The Inquiry from Chase was my 5th inquiry. I closed on the 6th. I also applied for the Cap1 Cash Rewards card 6 months out in July 2012. I don't know what the score impact was because I wasn't subscribed to score watch at that time but when I applied for a car lease in Nov, my score was 724 (auto enhanced, of course).

Now as we were moving in to our new home on Thursday, an ADT representative came by and asked if we wanted to get the home security system started. I said, absolutely! Well they ran a credit check on me and did TWO hard pulls! I got a score watch alert, and my EQ fico is now down to 694 from 703, so my highest score now from my TU fico must be 708. Now I have 7 inquiries! Yuck...so no apping for me for awhile but we needed the security system! It was installed yesterday afternoon.

How many inquiries do you have?

If you decide to let your husband app for the card, you may request to be added as an authorized user. You will also get a card in your name and the account activity will be reflected on your credit reports. So any points that he may gain, you will gain also.

Wishing you the best.

[JM-AM]

From the little you mentioned you really should have no worries when applying.

Applying for credit while it can impact Lender decisions, and UW discretion, it really has very little impact on customers with higher credit scores, no bad tradelines, and a good DTI.

You could probably apply now, close within 10-20 days (if all is as you stated), if that was something you considered, if you feel applying for new account may impact you.

But waiting to buy is also okay, it is what will make you happy that matters.

You should have no issues either way.

[MovingForward_2012]

+1, I agree 100% with JM-AM.

[CraveMazda]

Thanks for sharing your experience. I have 3 inquiries as of right now.

[JM-AM]

3 INQ's 6 months old? 1 year old?

Still wont be an issue when applying for home.

I cant speak for something else you may apply for such as CC's and such.