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I have been looking at houses for close to 4 months now. So many ups and downs. The last house I wanted to put an offer on went wrong and my agent said it was out of my reach. I pretty much gave up.
So I got a credit card pre approval in the mail and I thought, I'll get that and get some stuff for my truck.
Two weeks later, that house went back onto the market. I put in an offer and they accepted. Now my stomach is in knots because all I can read is DONT OPEN CREDIT.
Does it matter if it's before I signed papers? Will it stop me from closing on this house?
I haven't even activated the card but it is showing on my credit report.
So I got a credit card pre approval in the mail and I thought, I'll get that and get some stuff for my truck.
No offense intended but this sentence to me indicates that you might not have learned the requisite financial discipline yet to be purchasing a home. Credit cards are not free money. When I get a pre approved credit card offer in the mail it goes into the trash bin.
We aren't moving for another year and a half, I quit applying for anything in late 2014 so I could be SURE it would be completely off my reports when we apply for our next home loan.
I'm confused, you knew you were looking for a house, even though that one house fell through, so why apply?
Well, I already have a few credit cards but, they were starter cards. So my plan was to shut them down since they are paid off and charge me monthly fees.
Then this card would have no fees and less apr.
But thanks for helping me. You were both a great help.
I can't imagine it would impact you negatively if you keep the balance low or zero. I think I did the same thing but waited until after closing to charge anything. Probably wait to close the other to until after closing as you won't have the long credit history.
Don't get rattled, talk to your loan officer and discuss this with him or her. It's been my experience people that worry about a minor incident rarely have a cause for concern. When must your credit be pulled again? Does your lender have the ability to re-score? Do they have a "what if" scoring tool? (This is a tool where a loan officer can use a predictor of sorts that that shows if you do X, your score will change by Y. Now, if they have run DU, the "what if" tool is useless with that lender. So maybe ask your loan officer first if they have run DU). If they have this credit tool, ask them to see what happens if you move your balances from the starter cards to the new account (but not close any of them just yet). You possibly could have stumbled upon a way to increase your score by significant points, resulting in a lower rate.
The recommendations for your situation depend upon what score you currently have and your financing. If you are a first time buyer going HomeReady with a score above 680, none of this matters. But if you are a repeat buyer or not using one of these programs, every 20 points = savings in rate and mortgage insurance premiums.
It's not just score but age of accounts is factored in too...but I think you're fine. Hope it all works out!
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