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New Credit Card ~ 12 Months Before Mortgage

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TenaciousRebuilder
New Contributor

New Credit Card ~ 12 Months Before Mortgage

So I have finally REBUILT my credit from the low 500's to a FICO 8 of about 830 and FICO 5 (for mortgages) about 800 Smiley Very Happy

 

At some point in the next year I will buy a house. My newest account is a 2.5 year old car loan and I have a low utilization (typically < 3% with > $20,000 credit card limit).

 

I know you aren't supposed to apply for a new credit card within a year of getting a mortgage but considering my high score and low utilization, would it be okay if I applied for a new card? I got an offer for a fidelity unlimited 2% cash back card that I would apply to a Roth IRA. I like this idea.

 

Thanks for your help.

 

 

Message 1 of 4
3 REPLIES 3
tjmolly
Regular Contributor

Re: New Credit Card ~ 12 Months Before Mortgage

At that score level, you are well beyond what is required for the best rates.  I say go to town and get that new card!  Nice work on the FICO rebuild. And if the idiot underwriters can't see your decision to get 2% back into a retirement account as good financial stewardship, tell them to go "bleep off" and look for a new one.  You will be more than fine applying for new card though. Any minute hit to your score will not impact you getting the best rate.

Message 2 of 4
Anonymous
Not applicable

Re: New Credit Card ~ 12 Months Before Mortgage

It really only matters when you are borderline approval territory. Since you are well-qualified, go ahead and pick up a nice new card!

Btw, my wife and I were somewhat borderline and each had new CC's within 4 months of applying and had no problem!

It's a good card, go ahead and get it!
Message 3 of 4
Anonymous
Not applicable

Re: New Credit Card ~ 12 Months Before Mortgage

Go get that card! My loan officer was compeltely fine with me getting a new card in the middle of the mortgage process because my DTI wouldn't be impacted enough to throw me over, and I had points to spare. Not recommended for EVERYONE, but if your profile can support it, do it!

Message 4 of 4
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