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One point from being pre-approved...

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Anonymous
Not applicable

One point from being pre-approved...

My husband and I are one point away from being pre-approved for a mortgage.  We currently have a 619 credit score and need 620.  We have one car payment (never missed a payment) so the lender suggested that we get a secured credit card or something like a Kohls card.  My question is that if we get a retail card, will it make the score go up or down.  I have been reading so much about it and can't find a direct answer.  We found a house we really love in our price range and would like to put an offer in this week.  So the quicker the score goes up, the better!  We also currently rent and do not own. 

 

Thanks for the help!

Message 1 of 9
8 REPLIES 8
sports1965
Frequent Contributor

Re: One point from being pre-approved...

Applying for a new card requires an hard pull

That hard pull will lower your score at least a couple points

 

Message 2 of 9
sports1965
Frequent Contributor

Re: One point from being pre-approved...

Or you can go FHA 

Your scores are good enough  for an FHA loan

Message 3 of 9
Anonymous
Not applicable

Re: One point from being pre-approved...

If your credit card balance is above 30% you can improve your score significantly if you get it below 30%. You will gain several more points if you can get your credit card balance below 10%. You can either do this by paying down your balance or asking your credit card provider for a credit limit increase.
Message 4 of 9
TheGardner
Valued Contributor

Re: One point from being pre-approved...

Depending on UTL and how many open TL you have a new card can definitely bring your scores up a bit. And the new HP/card can be explained to underwriters with a LOE.

 

If you already have several HPs in the last 6 months thes HP may not even ding your score. Good luck and keep us posted!

If anyone needs me I will be In The Garden. Goal Score: 760 for all in 2015.
Current FICO Scores EX: 715 EQ: 756 TU: 762
Last APP April 21, 2015.
Victim of The great AMEX HP heist of Dec 1st, 2nd and 3rd of 2014.
Message 5 of 9
alienfico
Frequent Contributor

Re: One point from being pre-approved...

Open Sky secured card does not require a hard pull.

Starting: TU:515, EX:521, EQ:528
Current: TU:700 EX:706 EQ:674
FICO Goal: 725
Cap1 Venture $11,000AU, First Progress $500, Cap1 QS $1750, FH$600, Open Sky $300, Cap1 $500, BestBuy $1500 Target $1800
Message 6 of 9
Anonymous
Not applicable

Re: One point from being pre-approved...

If you only have the car loan and no revolving credit your score will definitely go up getting a secured card. Id look at Bank of America. I also have the open sky card. They report very quickly after you get the card but they charge the annual fee upfront so as soon as you activate you need to login and pay the balance down to $2.
Message 7 of 9
Anonymous
Not applicable

Re: One point from being pre-approved...

If you only have the car loan and no revolving credit your score will definitely go up getting a secured card. Id look at Bank of America. I also have the open sky card. They report very quickly after you get the card but they charge the annual fee upfront so as soon as you activate you need to login and pay the balance down to $2. Also you keep saying WE. Is the car loan in both your names? If you're using both of your credit for the loan then you'll both need to get a card.
Message 8 of 9
Anonymous
Not applicable

Re: One point from being pre-approved...

Thanks for sharing...Smiley Wink

Message 9 of 9
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