@LjHunter, I would argue opening any new credit account less than a year before applying for credit is a very bad idea, regardless of how thin one's file is. Here is just one data point; I have spotless credit reports, all showing a single new credit card within the last year, I opened that card in August, even still, my middle Mortgage score is roughly 40 points below my FICO 8 scores and nearly 60 points below my FICO 9 scores.
Long story short, new accounts hurt mortgage scores more than pretty much any of your other scores.
@LjHunter wrote:Ok so you think he's better off just going for the mortgage as he is now. I just wish I'd got him to get a credit card a couple years ago when I first asked!
Definitely. I just checked my scores from a couple years ago (the last time my youngest account was over a year old), and all three of my mortgage scores were 800 or higher, now they are all 50+ points lower.
@LjHunter wrote:Hey there, I'm Lj. Been loving everyone's advice here, absorbing tons of info, and now for my first post. (Really looking forward to member status for signature!)
After the last 3 years of finally paying attention to my credit, I've come a long way and am proud of what I've accomplished credit wise, and now I'm looking to buy my first home. I have a good credit mix already but my SO doesn't and so I've been thinking of doing a joint Personal Line of credit, now that we've recently opened a joint savings account at Truist.
My question is: If I want to start the approval process in say the next 6 months or so, is it a good idea to apply for a PLOC now? My concern is having a new account/new inquiry. But I'd also love the extra cushion of available cash for unexpected expenses. The only significant way I still need to improve my credit report now is my length of credit history. TIA for any advice!
my generic sig:
MyFICO Fico 8 - 767 EQ
Vantage 3.0 - 766 TU
Inquiries 4
Derogatory/Delinquencies 0
1 vehicle loan
1 personal loan (small, my daughter pays)
Total Cards 6 (2 zero balance)(+5 closed)
Utilization 7%
AAoA 3.6 years
oldest acct 9 years
newest acct 1.5 years (5 new accts)
You absolutely should NOT make any credit application in the 12 month run up to a mortgage application.
