Just closed on a mortgage, does getting a mortgage hurt credit score? (PMI, loan)

[red_3000]

I have pretty good credit (3-sore average 795).
I just closed on a house and now I am thinking of getting a new credit card. My current credit card has a low limit and high interest rate. I only kept it around because it is an old account and I keep it revolving to boost my credit score and help my mortgage interest rate. Now that I have sealed the deal on the mortgage I want to discontinue using my old card and get a new one. My only worry is that my credit score may have been hurt with such a huge and new loan (i.e. mortgage).

I want my new card to have a reasonable limit and the lowest interest raye possible. And I am sure that my credit score must be a big determining factor.

I know the best way of knowing is just to pay for a FICO. But I figure'd I would ask here first. Plus it'a a way for me to break the ice as my 1st post.
Thanks!

[bls8195]

I just bought a house 3 weeks ago and last night bought a brand new truck and had no issue's.

[Fant]

I'm buying a house and got turned down for a Best Buy card because of "too many inquries". I had 3 inquries within a 2 day period because of my loan applications / preapprovals. Best buy just said sorry they couldnt help me.

[AndrewSoss]

The mtg drops your score a little bit for about 6 months until it's seasoned, but it's nothing drastic.

The worst thing for you would be to close the old cc account. that will hurt your score more than the mtg. if you want a new card, then keep the old one open and open up the new one.

You need that old card to serve as history of open and responsible credit.

With your score, you should have no problems whichever route you take.

[Lacerta]

Originally Posted by Fant

I'm buying a house and got turned down for a Best Buy card because of "too many inquries". I had 3 inquries within a 2 day period because of my loan applications / preapprovals. Best buy just said sorry they couldnt help me.

My understanding is that if the inquiries are made by mortgage companies/banks/financial institutions of whatever kind, it only counts as one hit for like a 6 month period or some such. Shopping the market for the best loan is expected, and it is anticipated that you will only actually accept one mortgage, so you can get as many bids as necessary and it will only ding you once.

There were either inquiries from another source, or the person who told you that doesn't know how to read the credit report, or they don't understand how credit works. If either two or three are true, they shouldn't be in that department of Best Buy.

Anyway, Andrew hit the nail on the head. Don't close the old account, just cut up the cards so you aren't tempted to use them. Old cards with good history are the best thing you can have on your credit.

If anyone turns you down with that credit score, they aren't someone you want to do business with anyway.

[aneftp]

Originally Posted by Fant

I'm buying a house and got turned down for a Best Buy card because of "too many inquries". I had 3 inquries within a 2 day period because of my loan applications / preapprovals. Best buy just said sorry they couldnt help me.

Yeah, I'm a little upset at Best Buy/HSBC (that's who really administers the card). The canceled my Best Buy credit that I have had for at least 15 years since I just started college. Hadn't used the card in 3 years and that's why they put it in "inactive status". Although they technically said it wasn't "canceled" I couldn't reactive it.

Also AndrewSoss (the poster a couple of post ahead of this) is correct. You may see your credit score "dip" maybe to 750-760 (from your near 800 score). But that shouldn't really effect your chances to apply for a new credit card as long as your credit score is above 732 (most major credit cards).

So give it 6 months and you should be back to the high 700s/low 800s.

[TamikaTurner]

You should be fine. It takes the credit bureaus about 30 days to update your credit report. So more than likely the house you just purchased isn't even showing up yet. I say go for it!! :-)

[jimboburnsy]

"Trying to get money" tends to have a small and transient negative effect on your credit, but it shouldn't be a major concern and will correct itself in a short period of time.

[kiacook]

In the long run, the mortgage should help your credit score because of the type of structured debt it is.

[annerk]

Originally Posted by TamikaTurner

You should be fine. It takes the credit bureaus about 30 days to update your credit report. So more than likely the house you just purchased isn't even showing up yet. I say go for it!! :-)

The mortgage might not be there, but there are definitely inquiries by the mortgage lender, and probably the insurance agency and possibly even the PMI company. The lender ALWAYS pulls a final report the day the docs are prepared, and yes they can and do cancel closings because people ahve gone out and bought a bunch of furniture on credit two weeks before they closed. Inquiries can lower a credit score just as much as a new trade line--in some cases even more.

To the OP--your credit score is high enough that the mortgage or it's relative inquiries shouldn't make any difference on your credit card application.