Do I apply for another card?

AshCas · ‎02-23-2012

My husband and I are getting ready to get pre-approved to start the homebuying process. When we pulled our credit reports, I found a collection that isn't mine - I'm in the process of fighting it and getting it removed. I only have one credit card I've had for a few years, with a credit limit of only $1,000.00. My TU FICO is 681 (I've had some progress with getting the collection straightened out), and my EQ FICO is 637 (still waiting for them to fix the collection). I want my score to be over 700 before we apply for a mortgage.

I know I need more credit, but I'm afraid if I apply for another credit card this close to applying for a mortgage, ithe hard inquiry will bring my score down. Are there any other ways, besides getting another credit card, to raise my score quickly? I've read a few other posts about authorized users on a spouses credit cards - how does that work? Would my old credit issue impact his score? How much would my score go up if we did this? My husband has excellent credit.

dharalex · ‎02-23-2012

I wouldn't apply for any more credit. I really can't answer the rest with any authority, but I just hate to see unanswered threads. Good luck!

Starting Score: TU:676;EQ:648 8/2011
Current Score: TU:738; EQ: 739 ;EX: 729 6/2012
Goal Score: 760

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Current Score: 800
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edselpdx · ‎02-23-2012

I'm not an authority on this, but I think that if you're planning on trying for a mortgage in the coming 6 months, you should not have a new inquiry unless you absolutely need the credit. It's probably better to not "look like" your seeking too much new credit. Although a new CC will help in the long run with you credit score, in the short run it won't. Having a mortgage in good standing will go much farther towards a better credit score than an additional CC. Keep up the dispute on the incorrect info, but don't open new credit at this point just to show that you have more credit available.

namvet · ‎02-23-2012

@AshCas wrote:
My husband and I are getting ready to get pre-approved to start the homebuying process. When we pulled our credit reports, I found a collection that isn't mine - I'm in the process of fighting it and getting it removed. I only have one credit card I've had for a few years, with a credit limit of only $1,000.00. My TU FICO is 681 (I've had some progress with getting the collection straightened out), and my EQ FICO is 637 (still waiting for them to fix the collection). I want my score to be over 700 before we apply for a mortgage.

I know I need more credit, but I'm afraid if I apply for another credit card this close to applying for a mortgage, ithe hard inquiry will bring my score down. Are there any other ways, besides getting another credit card, to raise my score quickly? I've read a few other posts about authorized users on a spouses credit cards - how does that work? Would my old credit issue impact his score? How much would my score go up if we did this? My husband has excellent credit.
Not recommended to apply for new credit or add to existing credit during the pre-approval process. Your past credit issues will not impact your husband's score. It is best to meet with your lender and get your recommendations before doing anything with your credit. If you will be applying and using your income to qualify then they will be reviewing your credit. If your husband can qualify without your income then you don't need to be part of the credit application.