First Time Home Buyer- just closed-...what's next??!

[Anonymous]

Hi new friends, 

I'm new to learning credit, and fico and would like some tips on how to handle the first 30 days after purchasing a new home (new construction). I paid down my debt before doing the mortage process where i'm at about 3% CC utilization and a car loan with about $6k left on it. I do need to purchase some things for the home, appliances, fence, blinds etc..... 

I have been told to apply for new credit or higher limits within the first 30 days before the house is reported to the Credit agencies. Is this myth or fact? I would really like to keep improving my score and i know this is just the start. 

Thanks so much in advance!!

[DIYcredit]

I'm glad you learned about cc utilization, because is very important. Eventually you will want to have three cc's and you want to master the AZEO method before any app.It's not how high the credit limit is,it's more about how low you keep you keep the balance on each cc.But the higher the credit limit the easier it is too manage.You have a great variety because of cc and auto loan.Be sure to pay everything on time every month and keep your oldest cc open.

[Anonymous]

Thanks so much for the support and the feedback!!!!

So should I be attempted to consolidate cards ( i have 8 now) or be trying to aquire new credit? I say that because I have a 4 cards with 1k or below limits and 4 with 3K or more limits. 

I am concerned that taking on a new home $260K that my score is gonna take a hit on my scores and and because I need to use credit to purchase of inital items, that will cripple my utlization if i dont. 

What impact will the house have on me?

[Anonymous]

I am guessing that the best fit for you is one or two cards that have a 0% promotion for the first year.  If so, it makes sense to apply for them now.

There is no need to combine or consolidate cards, though if you wish to you certainly can.

[Anonymous]

To make a guess as to the impact that the home loan will have, we'd need a list of all your installment accounts (loans, leases, etc.) with the current balance and original loan amount.   Like this:

Loan 1.   Balance = ____   Original loan amount = ____

Loan 2.   Balance = ____   Original loan amount = ____

Loan 3.   Balance = ____   Original loan amount = ____

etc.

The utilization on installment accounts vs. revolving accounts is tracked separately.  The appearance of the home loan will not therefore affect your CC utilization.

[Anonymous]

Hello all

I only have 1 loan now for a car 

Loan 1.   Balance = 6100  Original loan amount = 1350

Loan 2 will be for the house 260,000 no payment yet of course

I have 8 credit cards with a total balance of $925 out of 31K available

FICO now is 680 

So wont my score drop when the house updating on there?

[SouthJamaica]

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@Anonymous wrote:

Hello all

I only have 1 loan now for a car 

Loan 1.   Balance = 6100  Original loan amount = 1350

Loan 2 will be for the house 260,000 no payment yet of course

I have 8 credit cards with a total balance of $925 out of 31K available

FICO now is 680 

So wont my score drop when the house updating on there?

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Probably yes it will drop when it reports. It seems to me that you don't need, and shouldn't apply for, more credit, but if you want to add a card I would suggest a low interest, no-balance-transfer-fee, no-cash-advance-fee, platinum card from a credit union.

[Anonymous]

Thanks for the response 

So then I shouldn't worry about the combination of new home hitting and having to use credit cards to pay for essentials like furniture, fence etc...?

Just try and increase existing limits instead of new cards?

[Anonymous]

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@Anonymous wrote:

I only have 1 loan now for a car 

Balance = 6100  Original loan amount = 1350

---

Did you mean $13,500 for the original loan amount?

[Anonymous]

@evomatt25 wrote:

I only have 1 loan now for a car 

Balance = 6100  Original loan amount = 1350

Did you mean $13,500 for the original loan amount?

yes sorry i forgot the extra zero's