mortgage and new cc

[Anonymous]

I know you shouldn't mess with your credit while trying to get a mortgage.  but, I have a first premier cc coming due and it costs. also has 63.99% interest(which i pay off monthly). I want to replace it for a cheaper Orchard bank card.(24%interst).  does anyone know how much of my score will take a hit If I close the more expensive one and open a cheaper one? the LO says I need 3 cards as a payment pattern

[Anonymous]

dont close the card..pay it off and stop using it..pay the yearly fee and call it a day for 48 months..it look better that way..you don't pay interest if you don't use it..

[Anonymous]

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@Anonymous wrote:

I know you shouldn't mess with your credit while trying to get a mortgage.  but, I have a first premier cc coming due and it costs. also has 63.99% interest(which i pay off monthly). I want to replace it for a cheaper Orchard bank card.(24%interst).  does anyone know how much of my score will take a hit If I close the more expensive one and open a cheaper one? the LO says I need 3 cards as a payment pattern

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If they're saying you need three cards, do they mean three accounts? Would a car loan work, etc? And I take that to mean you were not pre-approved?

If that's the case, then what kind of scores are we workign with? If you're seriously thinking about a mortgage, I would think you may be in good enough shape to at least go for a Cap1 or something. Regardless, applying for new credit in order to get a mortgage will take a solid six months to really work at all, from what I understand. You might need to grow your score over the next six months or a year, in other words.

But +1 to above, don't close the card. Zero out the balance and stick it in the freezer (i.e. don't use it).

[LondonMassey]

Is 63.99% interest even legal?? Holy geesh!!

[eduardofabian1]

Don't even think of closing an account, you will take a big hit in your score. Next, do not substitute a 64% card with a 20 something % card. Wait until you find a better deal or get a secured one. You can find one within the 12% to 18% range, a lot better than 24%.

[Booner72]

Leave it alone. 

[Anonymous]

Closing a credit card only affects credit history. The harder hit would be to open a new card when you are also aplying for a mortgage. Your existing credit cards are going to raise eyebrows when you aply for the mortgage let only aply for a credit card and a mortgage at the same time. Your other cards are likely to limit chase you down to zero credit limit after to aply for the home loan. But then again I presume that if you have a 64% interest credit car you probably don't have a second crediti card.

Asstore card, two regular revolving accounts and a car payment are more than enought to get you a home financed if the numbers are good and you have a few years history.

[Anonymous]

BTW, Orchard sux.

[MarineVietVet]

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@eduardofabian1 wrote:

Don't even think of closing an account, you will take a big hit in your score. Next, do not substitute a 64% card with a 20 something % card. Wait until you find a better deal or get a secured one. You can find one within the 12% to 18% range, a lot better than 24%.

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What would cause the damage to the score?

[MarineVietVet]

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@Anonymous wrote:

Closing a credit card only affects credit history. The harder hit would be to open a new card when you are also aplying for a mortgage. Your existing credit cards are going to raise eyebrows when you aply for the mortgage let only aply for a credit card and a mortgage at the same time. Your other cards are likely to limit chase you down to zero credit limit after to aply for the home loan. But then again I presume that if you have a 64% interest credit car you probably don't have a second crediti card.

Asstore card, two regular revolving accounts and a car payment are more than enought to get you a home financed if the numbers are good and you have a few years history.

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Closing a card will not affect either the AAoA or credit length history. This is discussed here: Closing Credit Cards.