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0% utilization rate

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Valued Contributor

Re: 0% utilization rate

Best not to add any new accounts while seeking a mortgage, or less than 6 months prior to seeking a mortgage, so not to complicate things on the lending side.  Best to wait ttil after you close to add new accounts. 


Credit limit doesn't matter - utilization does so just keep your balance low. No need to make adjustments to the limit at this time.


Were you able to obtain your mortgage scores?


@John90 wrote:

I have a Capital One secured credit card, it is called Platinum.

What do you think I could get as a second card?

Should I also ask to get a higher limit on the one  I have?


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Message 21 of 30
New Member

Re: 0% utilization rate

The thing is that I am not able to get my FICO scores.

At myfico they say they won't give me my scores if I have only one credit card.

They literally refuse to take my money for a membership.


What should I do?

At some point I need to add a new credit card but it never seems to be a good time, esp. now that Im about to look for mortgages.

Message 22 of 30
Valued Contributor

Re: 0% utilization rate

$1 at or for 3 bureau report.

Make sure to cancel in 7 days or less to avoid the reoccurring charges.
Message 23 of 30
New Member

Re: 0% utilization rate

Yes I got my scores on experian but those are FICO8 scores. Not for mortgage.

Message 24 of 30
Valued Contributor

Re: 0% utilization rate

@FireMedic1 wrote:

@AllZero wrote:
You want to be under 8.9% reported aggregate utilization.

0% utilization, you'll receive penalty points.

Greater than 8.9%, you'll receive penalty points.

50% or more of your cards reporting a balance, you'll receive penalty points.

"I opened a secured credit card 18 months ago. This is my first and only card."

The OP only has 1 card.

Noted. Was throwing out a tidbit of information to the OP.

Message 25 of 30
Valued Contributor

Re: 0% utilization rate

@John90 wrote:

Yes I got my scores on experian but those are FICO8 scores. Not for mortgage.

Try calling myFICO to discuss the issue. 1-800-319-4433 should also provide EX 2 score.

Message 26 of 30
New Member

Re: 0% utilization rate

You were right Allzero: through experian I was able to get FICO2 (mortgages).

I have a score of 755.

Ok so, let's assume it is a score that could be use by a bank when I'll apply for mortgage.

My question is: will the banker just take the score in itself (and think it is pretty good) or might she/he think the score is not that relevant because I have only one card (a secured card) that was issued not that long ago ?

If the latter is the case, should I apply for a new card?

Message 27 of 30
Valued Contributor

Re: 0% utilization rate

When do you plan to apply for mortgage?

As mentioned up thread, one should not apply for credit or incur inquiries which could affect your scores.

You have a thin and young credit profile. Seeking additional credit might affect your score if you're looking to buy soon.

Visit the mortgage loan forum. Lots of great information to read and learn.

Lenders will pull all 3 bureaus and use the middle score. You only have 1 of 3 so far. You need to obtain Transunion 4 and Equifax 5 too.

Having only 1 credit card should not be an issue. The lender will use the middle mortgage score as well as your income, DTI, down payment, financials, etc. to determine if they can approve you for mortgage.

If you had say 2 years before looking to purchase, then you have time to build your credit profile.
Message 28 of 30
Valued Contributor

Re: 0% utilization rate

Here's some myFICO blogs that might be educational.
Message 29 of 30
Valued Contributor

Re: 0% utilization rate

You should not have a problem signing up for MyFICO because you only have one credit card. You’ve had it long enough to generate a score (which is six months). You need to call customer service.

With that said, yes the lender is going to look at the fact that you only have one credit card and therefore not much credit history. At the same time, if you are seeking a mortgage in the next 12 months, getting a new account or inquiry will harm your chances. However, there is a possible alternative:

Do you have someone that is willing to make you a joint or an authorized user on an existing card they have that has a perfect payment history and hopefully has been open for a while? (The longer the better.)

As long as it’s not an American Express or a lender that refuses to backdate, you would be good because it would be added to your credit report and the opening date would be the date they originally opened the card. Cha-ching! All that payment history will be added to your CR! And another account.

This would add another account without you incurring the AoYA penalty or hard inquiry for opening a new account. It would probably also increase your average age if the cards opening date is older than your average age now.

You do have to be careful though depending on the lender and you should check with the forum before you do it. The reason is, typically when you add an authorized user there is no hard inquiry. But that could vary by lender.

Also some cards don’t backdate, like American Express does not, so that would kill you because it would be just like opening a new account, it would have the opening date as the date added.

Likewise there are some lenders that will add you as a joint account holder without a hard inquiry but most will require a hard inquiry. So if you go the joint account route, you should ensure they will do it without a hard inquiry.

For instance, if you had someone with a BB&T card, you could be added as a joint without a hard inquiry, at least that has been my experience. Adding as an authorized user would probably be easier and then it’s reversible. (Adding as a joint is not reversible, without closing the account.) Remember the authorized user route usually does not result in a hard inquiry, where as the joint usually does. So it’s very lender specific and you need to check with us before you make a move. GL2U!

(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated NOV'19.
Message 30 of 30
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