Will opening a credit card affect getting a mortgage a yr down the road?

Forum|Forum|7 years ago
January 7, 2019
1 reply
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I have fair credit that I'm trying to build another 50 points to get a better mortgage. I'd like to buy in about a yr. I have a store credit card for 7 yrs and have had bank loans that I make all my payments on. My biggest debt is a car loan. I wanted to open a secured credit card to build on my revolving credit hoping to up my score, but I'm afraid it would bring down the average credit age and negatively affect my ability to get a mortgage. Is a yr enough time to open an account and a bank to say, "okay we see they are paying on time and keeping a low balance."?

Carl11_2

Employee

It could help. It could hurt. Each situation is unique.

For example, if you have a credit card with a $10,000 limit and your average balance over the last 5 years has been $4000, there's nothing to say that the day after you get a mortgage, you won't max out that credit card and keep it maxed out for years. Lenders know this and do take it into account. So when it comes to credit cards, there are circumstances where the credit limit can hold more weight on a mortgage approval, than your credit history does. So is possible that getting more credit may not help.