NYCFICO5 wrote:
Hi. I have been looking for a place buy, haven't made a bid yet, and have a question. My EFX is currently 708.
Background history - In the last 2 years I've raised my FICO from 656 to as high as 725. I pay off my credit cards (I had 4, now 3) in full each month. My total revolving available credit was $8,600. Recently, one card, which I handled very responsibly, decided that it wasn't continuing its services and closed my account. That card had a $3500 limit. Now my revolving credit limit is $5,100. My score has come down to 708 after this.
Even though I pay my bills in full I do understand that credit agencies report my amounts from my monthly statements.
To prevent your CC reporting balances, you need to find out when your CC reports to the CRA and pay down before that date. If you search or post over on the CC forum, you will likely find your answers. Some CC report the statement balance, some report the balance on the last day of the month, some report on your payment date, it just varies.
This low amount of revolving credit makes my FICO particularly sensitive to big, medium and now small purchases that I make. I want to apply for another card just to have more credit (head/wiggle room). THE QUESTION - Should I apply for the new card or hold off? I will probably buy a place in the next 3-6 months. Mortgage broker says its ok.
FYI - I do have bankruptcy on my report which comes off in March '09 and I will be a first time home buyer. I have some money in the bank and have been pre-approved as well. The only other debt I have is a student loan (min. payment of $314 a month).
Many thanks for your responses.
D
IMO, once you figure out when your CC reports and pay your balances before that date, then you'll be fine.
Personally, I wouldn't apply for anything before you get your mortgage closed. Remember, your score can take a ding for the inquiry/new account.
