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Question about credit

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  • Question about credit

    My loan officer told me not to open any new credit cards just before applying for a home mortgage loan.  If i open a new card today, how long will this new credit card affect my loan application?

  • #2
    They will just ask you about it. It just affects the optics mainly, if you dont otherwise look good can make you look "needy" for credit. Buying a house right now and I got 3 new cards this year, didnt seem to be a big deal at all. I wouldnt do it during the process so theres no new dings, and it doesnt look like youre trying to put the down payment on the card, etc...


    • #3
      I think the effect, small as it is, can last as much as six months.
      Helping those who wear the white coat get a fair shake on Wall Street since 2011


      • #4
        I think there will some variability in how new credit requests are factored into your score calculations.  For example I applied for 3 new credit cards this year so far and my credit score increased by 60 pts in the same time period.  I think it may be the fact that the new cards increased my credit limit and consequently dropped my credit utilization rate.  So I think it may actually be beneficial depending on your credit situation.